The Virginia State Corporation Commission (SCC) plans to hold a hearing Oct. 11 on efforts by United Prosperity Life Insurance Company to acquire Shenandoah Life Insurance Company.
The Virginia SCC will stream the audio portion of the hearing on the Web at http://www.scc.virginia.gov/case/webcast.aspx
United Prosperity Life — a company backed in part by Black Diamond Management Group L.P., Austin, Texas, recently signed a definitive agreement calling for it to acquire Shenandoah Life, Roanoke, Va.
Virginia regulators first revealed that they were in talks with Prosperity Life Insurance Group L.L.C., the parent of United Prosperity Life, in June 2010. United Prosperity Life has agreed to invest a minimum of $60 million in Shenandoah Life.
If the deal is approved by regulators and the company’s policyholders, Shenandoah Life will demutualize and become a subsidiary of United Prosperity Life by March 31, 2012, officials say.
Jose Montemayor, a partner at Black Diamond, was the Texas insurance commissioner from 1992 to 2005. He is now on the leadership team at Prosperity Life Insurance Group.
The Virginia SCC put Shenandoah Life into receivership in February 2009 and made the Virginia insurance commissioner the deputy receiver.
Shenandoah Life stopped selling new insurance when it entered receivership. Before it entered receivership, it was writing life insurance, annuities and dental insurance in 31 states and the District of Columbia.
Virginia insurance regulators have placed a moratorium on Shenandoah Life paying claims and benefits, except for accident and health claims, death claims, periodic annuity payments and hardship claims.
The moratorium “will remain in place during the acquisition process,” officials say. “Additionally, Shenandoah will not resume the issuance of new insurance policies until after the acquisition by United Prosperity Life Insurance Company is complete.”