J.C. Flowers completes insurance coverage sale

J.C. Flowers has accomplished the sale of Vericity to iA Monetary Company subsidiary iA American Holdings.

Valued at roughly $170 million, the all-cash transaction noticed iA purchase all the issued and excellent shares of Vericity for $11.43 every.

“This milestone marks the beginning of a brand new chapter for Vericity, and we’re proud to hitch the iA household,” stated James Hohmann, Vericity’s chief govt. “Combining our groups and assets unlocks thrilling new alternatives to increase the capabilities of Constancy Life and eFinancial to make life insurance coverage extra accessible and reasonably priced for on a regular basis Individuals.

“We additionally see plentiful potentialities forward for our staff who will play a pivotal function in charting and attaining our future development potential.”

Eric Rahe, managing director and co-president at J.C. Flowers, commented: “It is a nice end result for Vericity and J.C. Flowers, and we’re happy with the transformation achieved on the firm below our possession.

“Via our partnership with the corporate’s administration, Vericity is now capable of ship extra effectivity and higher options for shoppers by harnessing the facility of revolutionary proprietary expertise, together with AI (synthetic intelligence) and knowledge analytics.

Via its subsidiaries Constancy Life Affiliation and eFinancial, Vericity focuses on direct-to-consumer life insurance coverage. The corporate focuses on making life insurance coverage extra accessible and reasonably priced for the center market by using digital gross sales and underwriting processes, expediting coverage issuance, and providing merchandise that aren’t medically underwritten on the time of sale.

On account of the acquisition, Vericity’s frequent inventory has ceased buying and selling and the corporate is not listed on the Nasdaq Capital Market.

In the meantime Hohmann added: “Having the good thing about J.C. Flowers’ deep expertise in monetary companies, and particularly the insurance coverage sector, has been invaluable as we labored collectively to remodel and develop the corporate into a real chief within the area.

“We thank the J.C. Flowers crew for its assist, and we stay up for Vericity’s new chapter with iA.”

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