OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Prosperity Life Group’s subsidiaries, Shenandoah Life Insurance Company (Roanoke, VA), SBLI USA Life Insurance, Inc. (New York, NY) , Prosperity Life Assurance Limited (PLAL) (Bermuda) and S.USA Life Insurance Company, Inc. (Phoenix, AZ) remain unchanged following the announcement that a definitive merger agreement has been reached whereby S.USA Life Insurance Company, Inc. (S.USA), a subsidiary of Prosperity Life Group and PHG Merger Inc. (a subsidiary of S.USA), will acquire National Western Life Group, Inc. (National Western) in an all-cash transaction valued at approximately $1.9 billion. The outlook of these Credit Ratings (ratings) will remain stable.
The transaction is expected to add additional scale, a diverse liabilities profile and strong capitalization, with continued investment in infrastructure, while preserving liquidity. The acquisition represents a continued strategy of significant expansion of Prosperity Life Group’s insurance business. The merger will be funded through a combination of cash from internal sources, a capital commitment from affiliates of Elliott Investment Management L.P., its parent and additional borrowing under existing facilities.
The merger is expected to close in the first half of 2024, subject to regulatory approvals. There is a plan to re-domesticate National Western Life Insurance Company to Arizona (the domestic state of S.USA) from Colorado, which will be a condition to the closing of the transaction. Ozark National Life Insurance Company, a subsidiary of National Western, will remain domiciled in Missouri. AM Best will continue to closely monitor the transaction and the impact to the operating insurance entities under Prosperity Life Group.
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