Nassau Financial Group subsidiary Nassau Life Insurance will purchase two life insurance companies as part of its growth plans
Image: Foresters will divest its New York-domiciled life insurance companies. Photo: courtesy of Adam Radosavljevic from Pixabay.
Nassau Financial Group has signed an agreement to acquire life insurance companies, Foresters Financial Holding and Foresters Life Insurance and Annuity (FLIAC), from Foresters Financial.
Under the terms of the deal, Nassau Financial Group subsidiary Nassau Life Insurance will purchase the two life insurance companies as part of its plans to expand the platform and accelerate growth plans.
Planned to be completed in the first quarter of 2020, the deal is subject to customary closing conditions, including regulatory approval by the New York State Department of Financial Services. Financial terms of the deal were undisclosed.
Nassau chairman and CEO Phil Gass said: “This transaction marks an exciting next step for Nassau, as we seek to expand more broadly across insurance and financial services. We appreciate the opportunity to work closely with Foresters to provide seamless execution to meet their strategic objectives.
“In addition to the scale benefits FLIAC provides, this acquisition further supports our continued focus and momentum in expanding our franchise including several recent product launches and Insurtech initiatives.”
Foresters plans to exit from the North American asset management business
The sale is part of the company’s strategy to exit from the North American asset management business.
As part of the strategy, Foresters divested its asset management and broker dealer businesses earlier this year.
Foresters Financial president and chief executive officer Jim Boyle said: “Following the sale of our US and Canadian asset management businesses earlier this year, this transaction is in step with our strategy of focusing on fixed life insurance in North America and continuing to grow as a purpose-driven international fraternal benefit society.
“We will continue to evolve our business by focusing on innovation, new product development and independent distribution to best serve our members.”
In May 2019, Foresters Financial agreed to sell its Canadian asset management business Foresters Asset Management to Fiera Capital for an undisclosed amount.
Foresters Financial said that the transaction is aligned with its strategic plan, which aims to focus on and invest in its core life insurance business.