National Guardian Life sells closed blocks to Prosperity Life

National Guardian Life Insurance Company has agreed to sell certain closed-block businesses to Prosperity Life Assurance in a deal that National described as a significant milestone in the context of its capital optimization plans.

The subject businesses have combined net statutory reserves of approximately $400 million and consist of life, annuity and A&H lines.

The transaction is expected to close in mid-2020, subject to regulatory approval and the satisfaction of other closing conditions. Financial terms of the transaction were not disclosed.

“This transaction is a significant milestone for NGL in executing our strategic capital optimization plan and is aligned with our objective of continually improving our return on surplus and risk-based capital position,” said Knut Olson, NGL's president & CEO.

Proceeds from the sale will be utilized consistent with NGL’s strategic capital optimization program, including investing in our core preneed business and enhancing the services and products provided to our nationwide base of policyholders.

“This reinsurance transaction with NGL launches Prosperity Life Assurance Limited as an emerging provider of customized and innovative reinsurance solutions to the life insurance and annuity industry,” said Nicholas von Moltke, CEO of Prosperity Life. “We are very proud to work with NGL as this transaction supports its desired capital management objectives.”