CARMEL, Ind. & STAMFORD, Conn.–(BUSINESS WIRE)–SILAC Insurance Company, a leading U.S. annuity provider, and Hildene Capital Management, a credit-focused asset manager with approximately $12 billion of assets under management, today announced that they have entered into a long-term strategic alliance.
As part of the alliance, Hildene has acquired a strategic minority ownership interest in the Company. Additionally, SILAC has entered into a $2.5 billion quota share agreement with Hildene affiliate Ludlow Re SPC, Ltd. (“Ludlow Re”), which will provide reinsurance for SILAC’s annuity products. Hildene will also provide investment management oversight to $2 billion of SILAC’s general account assets, leveraging its position as a manager of scale and expertise in attractive asset classes to benefit the Company’s policyholders and shareholders.
Stephen C. Hilbert, Chairman and Chief Executive Officer of SILAC, said, “I couldn’t be more pleased to form this strategic alliance with Hildene, a well-recognized credit investor with a disciplined approach to portfolio management. This transaction – along with our increased bank facility – accomplishes SILAC’s goal of managing our risk-based capital company action level at over 300%. I firmly believe that Hildene’s investment experience and commitment to SILAC’s future reinsurance needs augments our Company’s strengths and positions SILAC to remain one of the leaders in the asset accumulation sector.”
Brett Jefferson, Founder and Co-Chief Investment Officer of Hildene, added, “SILAC has built a market-leading annuity distribution platform, and we are excited to partner with Steve and his team at an important point in the Company’s evolution. Our alliance with SILAC underscores the confidence we have in the Company’s ongoing success and Hildene’s ability to source attractive investment opportunities for longer-term capital. We look forward to a symbiotic relationship with SILAC for years to come as we continue to scale the Ludlow Re platform.”
The alliance was approved by applicable regulators and closed in late December 2022. Evercore, Inc. and Kramer Levin Naftalis & Frankel LLP provided financial and legal advisory services, respectively, to Hildene. Goldman Sachs and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. provided financial and legal advisory services, respectively, to SILAC.
About SILAC Insurance Company
SILAC is Utah’s oldest life insurance company founded in 1935. Its operations are conducted primarily in Salt Lake City, Utah, with executive offices in Carmel, Indiana and a satellite office in Overland Park, Kansas. Since 2018, SILAC has offered fixed indexed annuity products and has quickly grown to a leading provider of fixed annuities in the independent marketing channel. SILAC is licensed in 48 states and the District of Columbia. For more information visit www.silacins.com.
About Hildene Capital Management
Founded in 2008, Hildene Capital Management, LLC is a diversified institutional asset manager specializing in asset-based and credit opportunities. Hildene Co-CIOs Brett Jefferson and Dushyant Mehra are backed by a senior investment team with a long and established track record of investing across various credit and distressed cycles, leveraging their expertise in managing complex assets. Today, Hildene manages over $12 billion for a broad range of clients across private funds, tailored managed accounts and securitized asset structures. For additional information, please visit: https://www.hildenecap.com/.