Prosperity Drops Effort to Acquire Annuity Issuer
Prosperity is the New York-based company that oversees the business written by Shenandoah Life Insurance Company, SBLI USA Life Insurance Company and S.USA Life Insurance Company. It has about 300,000 policies in force.
Elliott, the investment firm that controls Prosperity, has a record of buying and reshaping what it sees as underperforming companies.
The Deal
Prosperity made an offer for American Equity in December 2022. It said the American Equity board rejected two requests to let Prosperity dealmakers see enough of American Equity’s records to fine-tune the offer.
American Equity executives talked to securities analysts on Friday, to go over earnings for the fourth quarter of 2022 and all of 2022.
The executives and analysts discussed a reinsurance agreement that has already freed up capital, and efforts to work with a bank to set up a new reinsurance “sidecar” arrangement that would let American Equity share more risk with outside investors.
The analysts did not ask the executives about the Prosperity offer.
American Equity’s headquarters in West Des Moines, Iowa. (Photo: American Equity)
