Paul Singer’s Elliott Management Corp. and Wand Partners Inc. are among investors buying Prosperity Life Insurance Group as investment firms push into the U.S. insurance market.
Elliott and Wand agreed to purchase the privately-held company from Reservoir Capital Group and Black Diamond Capital Partners, according to a statement Wednesday. The deal for the insurer, which offers life policies as well as annuities, still needs regulatory approval and is expected to be completed in the third quarter.
Black Diamond and other investors helped Prosperity, which was formerly known as United Prosperity Life Insurance Company, acquire Shenandoah Life Insurance Company of Virginia in 2012.
Elliott’s strategy echoes moves by Apollo Global Management LLC and Blackstone Group LP, both of which helped to build insurance companies. Apollo has ties to Athene Holding Ltd., an annuity seller, and oversees some investments for that company. Funds affiliated with Blackstone were part of a group that agreed to buy Fidelity & Guaranty Life last year.
More life insurers have been looking to reshape their businesses, leading an analyst at Wells Fargo & Co. to refer to increasing consolidation as the “great restructuring” of the industry.