FOXO Technologies to sell FOXO Life

In 2021, FOXO Life, a unit of FOXO Technologies, acquired Memorial Insurance Company of America from Security National Financial Corporation. Following the acquisition, Memorial Insurance took FOXO Life’s name and FOXO’s goal was to eventually be able to offer their own life insurance products.

Now, FOXO Technologies has entered into a merger agreement with Security National Life Insurance Company, a subsidiary of Security National Financial Corporation, as it looks to sell FOXO Life to SNLIC. Upon consummation of the Merger, FOXO will no longer have to hold cash and cash equivalents required to be held as statutory capital and surplus, as required under the Arkansas Insurance Code.

The merger agreement provides that, at the closing of the transactions contemplated thereby, all of the seller’s shares will be cancelled and retired and shall cease to exist in exchange of an amount equal to FOXO Life’s statutory capital and surplus as of the date of the closing minus $200,000. As of the date of this current report on Form 8-K, FOXO Life’s statutory capital and surplus amount is approximately $5,000,000.

FOXO has also agreed to pay the buyer’s third-party out-of-pocket costs and expenses, including counsel fees and filing fees, incurred in connection with the merger and the merger agreement at the closing.

As of September 30, 2022, FOXO had ~$5.4M of available cash and cash equivalents, excluding amounts held as statutory capital and surplus by FOXO Life Insurance Company.