Bermuda’s Prosperity Life Group to merge with National Western Life
National Western Life Group and Prosperity Life Group have signed a definitive merger agreement whereby S. USA Life Insurance Company, an affiliate of Prosperity Life Group, will acquire National Western in an all-cash transaction valued at approximately $1.9 billion.
As part of the agreement, each issued and outstanding share of National Western common stock will be converted into the right to receive $500 in cash at closing of the merger. The merger consideration of $500 per share of National Western's Class A Common Stock and Class B Common Stock represents an 87.1% premium to the unaffected Class A Common Stock share price of $267.29 on May 16, 2023, as well as an 11.8% premium over National Western's 30-day volume-weighted average price as of October 6, 2023. The merger has received the unanimous approval of National Western's Board of Directors.
Nicholas von Moltke, president and CEO of Prosperity Life Group, said: "The acquisition of National Western represents a significant milestone in the continued expansion of our insurance business. We look forward to welcoming National Western to Prosperity Life Group. National Western's capabilities will further complement our ambition to deliver a compelling value proposition to our policyholders and the company.”
Ross Moody, chairman of the board and CEO of National Western, said: "This is an exciting moment in National Western's history. I would like to thank our board of directors, particularly our strategic opportunities committee of independent directors, which conducted a thorough review of a range of strategic alternatives and possible business opportunities to maximize value for our stockholders. The transaction provides clear and immediate value for our stockholders at an attractive premium."
