Case Studies

 

Western United Life Assurance Company


Case Study: Western United Life Assurance Company

Description:

Western United Life Assurance Company (“Western United”) is a Washington-domiciled life insurance company primarily engaged in the offering, issuance, sale and renewal of annuity contracts with a focus on fixed annuities. Western United has been a quality provider of fixed annuity products and services since its inception in 1963. In early 2004, Western United entered into a voluntary Order of Rehabilitation and was placed in receivership by the Washington Office of the Insurance Commissioner. This was done to protect Western United and its policyholders from the bankruptcy of its then parent company due to heavy investment in real estate and real estate securities.

Restructuring:

In partnership with Global Secured Capital, LLC (“GSC”), DLB successfully acquired Western United out of receivership in the spring of 2008. DLB and GSC structured an innovative transaction whereby certain troubled assets of Western United were transferred to the prior owners as consideration for the acquisition. Simultaneously, DLB and GSC injected new equity in Western United to further stabilize the Company and to position it to write new annuity business.

Investment Thesis:

With Western United, DLB discovered an opportunity to acquire a strong franchise with a valuable distribution network at an attractive value. Furthermore, Western United’s target market—the middle-income senior market-is projected to expand dramatically in the coming years as the Baby Boomer demographic enters retirement.

 

Baby Boomer

from American Demographics

DLB Value Add:

DLB adds value beyond invested capital to Western United through its comprehensive insurance industry expertise and regulatory contacts. Additionally, GSC brings significant experience in managing and structuring complex transactions in the financial services sector, including life insurance acquisitions, premium finance and hybrid capital securities. DLB will also be active in the management of the company’s assets. A member of DLB serves as Non-Executive Chairman.

Case Studies

 

DLB adds value beyond invested capital to Western United through its comprehensive insurance industry expertise and regulatory contacts.