J.C. Flowers completes insurance sale
J.C. Flowers completes insurance sale | Insurance Business America
Insurance News
J.C. Flowers completes insurance sale
CEO thanks previous owner and welcomes firm’s “new chapter”
Insurance News
By
Terry Gangcuangco
J.C. Flowers has completed the sale of Vericity to iA Financial Corporation subsidiary iA American Holdings.
Valued at approximately $170 million, the all-cash transaction saw iA acquire all of the issued and outstanding shares of Vericity for $11.43 each.
“This milestone marks the start of a new chapter for Vericity, and we are proud to join the iA family,” said James Hohmann, Vericity’s chief executive. “Combining our teams and resources unlocks exciting new opportunities to extend the capabilities of Fidelity Life and eFinancial to make life insurance more accessible and affordable for everyday Americans.
“We also see abundant possibilities ahead for our employees who will play a pivotal role in charting and achieving our future growth potential.”
Eric Rahe, managing director and co-president at J.C. Flowers, commented: “This is a great outcome for Vericity and J.C. Flowers, and we are proud of the transformation achieved at the company under our ownership.
“Through our partnership with the company’s management, Vericity is now able to deliver more efficiency and better solutions for consumers by harnessing the power of innovative proprietary technology, including AI (artificial intelligence) and data analytics.
Through its subsidiaries Fidelity Life Association and eFinancial, Vericity specializes in direct-to-consumer life insurance. The company focuses on making life insurance more accessible and affordable for the middle market by utilizing digital sales and underwriting processes, expediting policy issuance, and offering products that are not medically underwritten at the time of sale.
As a result of the acquisition, Vericity’s common stock has ceased trading and the company is no longer listed on the Nasdaq Capital Market.
Meanwhile Hohmann added: “Having the benefit of J.C. Flowers’ deep experience in financial services, and in particular the insurance sector, has been invaluable as we worked together to transform and grow the company into a true leader in the space.
“We thank the J.C. Flowers team for its support, and we look forward to Vericity’s new chapter with iA.”
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