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Nassau Financial Raises Deal Money

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Nassau Financial Group LP — a company that likes the U.S. life and annuity markets — now has $100 million in extra cash that it can use to support and expand its existing business, and to buy other businesses.

The Hartford, Connecticut-based insurer announced Tuesday that it has received a $100 million investment from Wilton Reassurance Company and Stone Point Credit.

(Related: Nassau Completes Acquisition of Foresters’ U.S. Variable Annuity and Variable Life Operations)

“Nassau intends to use the new capital to execute on its organic growth plans across its insurance and asset management businesses as well as to support strategic acquisitions,” the company said in the deal announcement.

Wilton Re and Stone Point made the investment by buying a new series of perpetual preferred shares.

Golden Gate Capital, the investment firm that has been Nassau Financial’s controlling shareholder, continues to control Nassau Financial, the firm says.

Nassau Financial is best known as the company that acquired The Phoenix Companies Inc., a major life insurer that ran into problems during the 2007-2009 Great Recession.

In July, Nassau Financial closed on a deal to acquire Foresters’ U.S. life and annuity businesses.

Some other relatively new life and annuity market players have focused solely or mainly on managing in-force life and annuity business and have minimized efforts to sell new life insurance policies and annuity contracts.

(Related: Resolution Life Completes Acquisition of Voya Individual Life Blocks)

Nassau Financial has been active in efforts to be an active issuer of life insurance and annuities.

The company’s PHL Variable Insurance Company unit introduced a single-premium, multi-year guarantee annuity (MYGA) contract in March 2018. The company introduced the Simple Annuity app, a phone-based annuity shopping support app, in July 2020.

Stone Point Credit is part of Stone Point Capital LLC, an affiliate of Stone Point Capital LLC of Greenwich, Connecticut.

Stone Point is known in the insurance sector for controlling LTCG, a company that administers long-term care insurance operations.

It previously was the parent of Wilton Re. Stone Point sold Wilton Re to the Canada Pension Plan Investment Board in 2014. Chris Stroup, the chairman and chief executive officer of Wilton Re, is still an operating partner at Stone Point.

— Read Canadian Pension Board Arm Agrees to Reinsure Big CNO LTCI Block, on ThinkAdvisor.

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