JAB Insurance to acquire Columbian Mutual

JAB Insurance has signed a purchase agreement to acquire two life insurance companies, New York-based Columbian Mutual Life Insurance Company and its Illinois-based subsidiary, Columbian Life Insurance Company , both of which are in rehabilitation.

The purchase agreement, which is the centerpiece of a proposed Plan of Rehabilitation of CML, provides for an infusion of new equity capital to secure a stable, permanent home for policyholders and is subject to approval by the courts supervising the CFG rehabilitations as well as regulatory approvals.

Last year, CML stopped issuing new life insurance policies.

JAB Insurance is a fully integrated life insurance platform already serving over 1 million policyholder contracts and policies with its existing U.S. life insurers.

“Our mission is clear: preserve the promises made to policyholders and provide long-term financial security. We are humbled by the trust placed in us by the authorities in both New York and Illinois and look forward to welcoming these businesses into the JAB Insurance platform. We also look forward to investing in their future, and to welcoming both the policyholders and employees to JAB Insurance. We are grateful to the NYLB, OSD and the involved regulatory bodies for their partnership in helping us structure a winning transaction for policyholders.” – Anant Bhalla, Executive Chairman of JAB Insurance.