Mount Logan Capital Inc. has completed its previously announced acquisition of 100% of the equity of Omaha, Nebraska-based Ability Insurance Company for a purchase price of $20 million comprised of the issuance of an unsecured promissory note in the amount of $15 million and $5 million of common shares of Mount Logan.
Mount Logan’s wholly-owned subsidiary, Mount Logan Management LLC has now been engaged as an investment adviser for a meaningful portion of Ability’s assets, increasing Mount Logan Management’s assets under management.
The transaction has been approved by both the Nebraska Department of Insurance as well as the Neo Exchange Inc.
Ability is a domiciled insurer and reinsurer of long-term care policies with approximately $900 million of invested statutory assets as of June 30, 2021. Ability’s long-term care portfolio morbidity risk has been largely re-insured to third parties, and Ability is no longer insuring or re-insuring new long-term care risk.
As part of the transaction, Mount Logan has invested $10 million of capital into Ability to strengthen Ability’s balance sheet and launch a platform for the reinsurance of annuities, which is expected to reinsure $150 million of fixed annuities within six to twelve months.
Anna Elliott and David Charsky, current members of the Ability management team, will continue to lead the business following the closing of the Transaction as President and Vice President of Finance & Treasurer, respectively.
Source: Mount Logan Capital Inc.
Topics Mergers & Acquisitions
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