Ares Management has established a new indirect subsidiary under its existing insurance platform, Ares Insurance Solutions, to further bolster its operations.
Known as Aspida Financial, the new business has concurrently signed an agreement to purchase Pavonia Life Insurance Company of Michigan and its insurance operations for $75m in cash.
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As of 31 March 2019, Pavonia Life had nearly $1.1bn of assets and around $76m of statutory capital and surplus.
The acquired firm provides life insurance, annuities and reinsurance products and services. It will operate under the Aspida brand following the completion of the deal.
It will focus on underwriting new business, executing reinsurance transactions and pursuing opportunistic acquisitions.
Ares CEO and president Michael Arougheti said: “The launch of Aspida Financial and its plan for growth is the next evolution of Ares’ existing insurance platform, Ares Insurance Solutions, which now has over 100 insurance investors with $15bn in assets invested across our products.
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By GlobalData“We are excited to expand our presence in the growing insurance sector and to utilize Ares’ extensive capabilities for our first control acquisition of an insurance company that we can grow organically through new distribution channels and potentially inorganically through reinsurance and acquisitions. We have strong conviction that Ares can use its breadth, experience and scale to help Aspida become a market-leading insurance company.”
Pending regulatory approval and other closing conditions, the acquisition of Pavonia Life is scheduled to be completed before the end of 2019.
