KBRA Places Ratings of Prosperity Group Holdings, LP and Subsidiaries on Watch Developing Following the Announcement of Transaction with JAB Holding Company
6 Feb 2025 | New York
KBRA places on Watch Developing its Issuer rating of BBB- for Prosperity Group Holdings, LP (PGH), and the A- insurance financial strength ratings (IFSRs) of its subsidiaries Prosperity Life Assurance Limited, Shenandoah Life Insurance Company, SBLI USA Life Insurance Company, Inc., S.USA Life Insurance Company, Inc., National Western Life Insurance Company and Ozark National Insurance Company.
The Watch Developing status reflects uncertainty with respect to the near-to-medium term impact of the pending acquisition of Prosperity on its financial position, projected results, risk profile and business strategy in the wake of the announcement that JAB Holding Company (“JAB”) will be acquiring Prosperity Life Group (“Prosperity”) from Elliott Investment Management. Prosperity is comprised of the Prosperity Life Group Insurance Companies and Prosperity Asset Management. JAB is an investment holding company that invests in insurance and consumer-focused industries with attractive long-term dynamics, including strong growth prospects, attractive margin and cash flow characteristics, and proven resiliency. JAB’s portfolio investments span various sectors, including coffee and beverages, beauty, indulgence, fast casual restaurants, pet care and pet insurance. The announced transaction with Prosperity marks the signing of JAB’s first major transaction as it launches its strategy to build a global insurance ecosystem. As of YE2023, JAB had over $50 billion in managed capital. The transaction is subject to insurance regulatory approvals and is expected to close in the second half of 2025.
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