Oaktree to acquire Atlantic Coast Life from A-CAP
Alternative credit manager Oaktree Capital Management and A-CAP, a New York-based insurance and financial services company with over $16 billion in assets under management, have signed a master transaction agreement in which Oaktree plans to acquire a controlling stake in Atlantic Coast Life Insurance Company while concurrently providing capital support to Sentinel Security Life Insurance Company via funding a surplus note investment into a newly created captive insurance company. All of the net proceeds from these transactions will be used to support the growth and long-term objectives of Sentinel and its policyholders.
“A-CAP is pleased to work with Oaktree given its track record of investing alongside insurers, particularly during times of transition. While we have significant work ahead of us to successfully carry out the transactions contemplated by our agreement, Oaktree’s insurance-focused credit expertise and flexible, long-term capital will support disciplined growth of our balance sheet, enhance our asset liability profile, and strengthen our ability to serve our policyholders and distribution partners over the long term.” – Kenneth King, Chairman and CEO of A-CAP.
“We are pleased to reach agreement with A-CAP on a multifaceted transaction that we believe benefits all stakeholders of Sentinel and Atlantic Coast Life. We look forward to working with the many parties involved – namely, the state regulators, rating agencies, reinsurers, and distributors – as A-CAP and its carriers work to complete the various steps required to close the transaction.” – Jake Wagner, Managing Director, Global Opportunities, at Oaktree.
“Our planned acquisition of Atlantic Coast Life is the latest in a series of insurance investments where we partner with companies during a period of market dislocation or transition. The company will benefit from our meaningful experience in regulated carve-outs as it works to complete its pre-closing transaction milestones. Following closing, we believe both Atlantic Coast Life and Sentinel will be well positioned to prioritize policyholder protection, financial strength, and sustainable long-term growth.” – Patrick C. George, Senior Vice President, Global Opportunities, at Oaktree.
