Court OKs West Coast Annuity Acquisition

Global and DLB say Global Life will try to rehabilitate Western United, keep the company in its current business and continue to support policyholders’ in-force annuities, officials say.

Global and DLB say they would leave the current managers of Western United in place.

Douglas Brown, the founder of DLB, would run the Global Life management committee.

Before Brown founded DLB in 2007, he was vice chairman for investment banking at Morgan Stanley Inc., New York. He sits on the board of AEGON USA, a unit of AEGON N.V., The Hague, Netherlands, officials say.

Under the terms of the sales agreement, “all current, outstanding shares of common and preferred stock of Western United will be redeemed and new shares will be issued to Global Life,” officials say.

Cash and other assets may go directly to Metropolitan Mortgage and the Western United holding company, officials say.

“Assets based on the value of capital and surplus at the date of the closing will be transferred to the creditors,” officials say. “The assets include $7 million in cash, $2 million from the future sale of a specific parcel of real estate, real estate valued at nearly $15 million, and approximately $31 million in reinsurance payments from Old Standard Life Insurance Company, a related company.”