Dhiren Jhaveri (Photo: Kuvare) Dhiren Jhaveri (Photo: Kuvare)

A young company that says it wants to become a real life and annuity player, not just manage old blocks of business, now owns Lincoln Benefit Life Company — a life insurer that once helped power Allstate Corp.’s annuity operations.

Kuvare US Holdings Inc. said Monday that it completed the purchase of Lincoln Benefit Life, and Lincoln Benefit Life affiliates, Dec. 31.

The Chicago-based life insurance holding company announced the Lincoln Benefit Life deal in July.

Resources:

  • The Nebraska Department of Insurance order approving the Lincoln Benefit Life acquisition is available here.
  • A ThinkAdvisor article about the deal announcement is available here.
  • An interview with Dhiren Jhaveri, Kuvare’s chief executive officer, is available here.

Kuvare bought Lincoln Benefit Life through a life insurer it acquired earlier, Guaranty Income Life Insurance Company.

In July, Kuvare and Lincoln Benefit Life did not announce a deal price.

The Nebraska Department of Insurance had jurisdiction over the deal. Bruce Ramge, the Nebraska insurance director, approved the deal. In the order approving the deal, which is dated Dec. 5, 2019, the department states that the net price of the deal is about $370 million.

Lincoln Benefit Life

Lincoln Benefit Life is based in Rosemont, Illinois, and has been in operation since 1938. It’s licensed to operate in 49 states and has about 200,000 annuity and variable life policyholders.

The $370 million deal price amounts to an average of about $1,850 per customer relationship.

The Nebraska order describes Lincoln Benefit Life as being in run-off mode, meaning that it’s simply servicing in-force business, not writing new business.

The buyers and Lincoln Benefit Life “may assess over time the feasibility of [Lincoln Benefit Life] recommencing sales,” according to the order. Kuvare has agreed that, if Lincoln Benefit Life begins selling insurance products again, it will file a business plan with the Nebraska department, according to the order.

Allstate bought Lincoln Benefit Life in 1984 and used it to create a large annuity operation. The 2007-2009 Great Recession hit the unit hard. In 2014, Allstate sold the company to a Bermuda-based arm of Resolution Capital Ltd. of London for about $600 million

Guaranty Income Life, the Kuvare unit that acquired Lincoln Benefit Life, has posted its 2018 financial results online. The company reported $10 million in net income for 2018 on $266 million in revenue, up from $3.9 million in net income on $140 million in revenue for 2017. That company is actively marketing deferred annuities and an annuity-based long-term care hybrid.

Kuvare

Kuvare started up in 2015. Kuvare says it now has about $22 billion in assets, up from $3.8 billion in April 2018.

In addition to Guaranty Income Life and Lincoln Benefit Life, Kuvare owns United Life Insurance Company.

Dhiren Jhaveri, Kuvare’s chief executive officer, said in a comment about the Lincoln Benefit Life deal closing that Lincoln Benefit Life “significantly enhances the scale and breadth of our business.”

The deal closing also adds product and distribution capabilities, Jhaveri said.

Kuvare has named Carlos Sierra, Kuvare’s chief operating officer, to be Lincoln Benefit Life’s president.

Lincoln Benefit Life’s “operating capabilities and its experienced staff will contribute greatly to, and benefit from, Kuvare’s platform,” Sierra said.

— Read Kuvare Chief: We Want to Build a Life and Annuity Company That Will Last, on ThinkAdvisor.

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