United Prosperity Life Insurance Company — a company backed in part by Black Diamond Management Group L.P. — has signed a definitive agreement to acquire Shenandoah Life Insurance Company, Virginia officials say.
United Prosperity has agreed to invest a minimum of $60 million in Shenandoah Life, officials say.
The Virginia State Corporation Commission put Shenandoah Life, Roanoke, Va., into receivership in February 2009 and named the Virginia insurance commissioner to be the deputy receiver in charge of protecting the interests of the company’s policyholders and creditors.
Virginia officials announced that they were in talks to transfer control of the company to Prosperity Life Insurance Group L.L.C., Austin, Texas, in June 2010.
United Prosperity is a subsidiary of Prosperity Life Insurance Group, which is, in turn, controlled by Black Diamond, Austin, and another private equity firm.
Jose Montemayor, a partner at Black Diamond, was the Texas insurance commissioner from 1992 and 2005. He is now on the leadership team at Prosperity Life Insurance Group.
“We’re very excited to enter into into this deal,” Montemayor said in an interview.
Black Diamond looks forward to helping recapitalize and restore Shenandoah Life, Montemayor said.