Nassau Reinsurance Group Holdings Completes Acquisition of Traditional Insurance Business from Universal American | Business Wire

HARTFORD, Conn. &. WHITE PLAINS, N.Y.–(BUSINESS WIRE)–Nassau Reinsurance Group Holdings, L.P. (“Nassau Re”) and Universal

American Corp. (NYSE:UAM) (“Universal American”) today announced the

successful completion of Nassau Re’s previously announced acquisition of

Universal American’s Traditional Insurance business.

The Traditional Insurance business consists of a closed block of

insurance products, including approximately 150,000 insurance policies

across Medicare supplement, life insurance, long-term care, disability

insurance and other specialty health policies. Under the terms of the

agreement, Nassau Re acquired all of the shares of Constitution Life

Insurance Company (“Constitution Life”) and The Pyramid Life Insurance

Company, as well as the Traditional Insurance business written by

American Progressive Life &. Health Insurance Company of New York on a

100% coinsurance basis. Going forward, these businesses will operate

under the Constitution Life brand as a privately held, wholly owned

subsidiary of Nassau Re.

At closing, Nassau Re paid approximately $30.5 million in cash, which is

subject to post-closing price adjustments. As part of the transaction,

Nassau Re contributed more than $20 million of new equity capital at

closing to strengthen the businesses and support strategic growth

opportunities.

“This latest acquisition further rounds out Nassau Re’s suite of

capabilities, which now covers life insurance and annuity products, life

insurance sales and distribution, asset management, policyholder

administration. Onshore and offshore reinsurance capabilities,” said

Phillip J. Gass, Nassau Re’s Chairman and CEO.

“In addition to providing stable profitability and predictable cash

flows to the Nassau Re group, Constitution Life highlights our ability

to creatively structure a transaction in order to provide a full and

complete exit to Universal American for their non-strategic business

lines. With its new equity capital and additional unfunded capital

available to Nassau Re, this business is well-positioned to continue

pursuing select closed block reinsurance transactions of long tail

liabilities,” Mr. Gass said.

Richard A. Barasch, Chairman and CEO of Universal American, commented,

“Our core strength is our proven ability to partner with providers,

especially primary care physicians, to improve health outcomes while

reducing costs in the Medicare population. With the sale of our

Traditional Insurance business, we can better concentrate our efforts on

growing our Medicare Advantage and Medicare ACO businesses.”

Nassau Re also announced today that Leland C. Launer, Jr., a Managing

Director of Nassau Re, will also serve as President of Constitution

Life, based in Lake Mary, Florida. Mr. Launer most recently served as

CEO and President of Fidelity &. Guaranty Life (NYSE:FGL).

The closing of this transaction follows the receipt of regulatory

approvals from the states of New York, Texas and Kansas and the Cayman

Islands Monetary Authority.

Debevoise &. Plimpton LLP acted as legal advisor to Nassau Re. Locke

Lord LLP acted as legal advisor to Universal American.

About Nassau Re
Nassau Re currently has assets exceeding $17

billion. Focuses on building a franchise across the insurance value

chain. Nassau Re’s extensive experience as owner-operators of numerous

insurance and financial services businesses provides a competitive

advantage in building a unique platform over the long term. Subsidiaries

currently include The Phoenix Companies, Inc., Saybrus Partners, Inc.,

Nassau Asset Management, LLC, Nassau Re (Cayman) Ltd. and Constitution

Life Insurance Company. Nassau Re was founded in 2015 with an initial

capital commitment of $750 million provided by Golden Gate Capital. For

more information, visit www.nsre.com.

About Universal American Corp.
Through its family of

healthcare companies, Universal American provides health benefits to

people covered by Medicare. The company is dedicated to working

collaboratively with healthcare professionals, especially primary care

physicians, in order to improve the health and well-being of those they

serve while reducing healthcare costs. More information about Universal

American is available at www.universalamerican.com.