Nyack, N.Y.-based Presidential Life Corporation and Athene Holding Ltd., a Bermuda-based holding company, have announced a definitive agreement for an Athene subsidiary to acquire Presidential Life for $14 per share in cash (about $415 million in total). The transaction is expected to close later this year.
Presidential Life, which markets and sells fixed annuity, life insurance and accident and health insurance products through its wholly owned subsidiary, Presidential Life Insurance Company, will be acquired by Athene’s wholly owned subsidiary, Athene Annuity & Life Assurance Company, which is focused on retail fixed and index annuity sales and reinsurance.
Presidential was targeted in part because Athene Annuity does not currently operate in New York, according to the company's CEO.
“We continue to build a market-leading retirement savings company through organic growth, reinsurance and strategic acquisitions,” said James R. Belardi, CEO of Athene, in a statement. “The purchase of Presidential Life will create significant opportunities for growth in our retail sales and reinsurance operations.”
“I am pleased to announce this agreement, which provides our shareholders with a significant cash premium for their shares. We believe this transaction is in the best interest of our shareholders,” added John McMahon, Chairman of the Board of Presidential Life, in a statement. “Today’s announcement is the result of a comprehensive process in which the Board of Directors, with the assistance of its outside advisors, carefully considered strategic alternatives for our shareholders.”