Pavonia Life Insurance Co. of Michigan, which is headquartered in North Carolina and domiciled in Michigan, has been acquired by Aspida Financial, a new arm of the Los Angeles-based Ares Management Corp. and Ares Insurance Solutions, for approximately $75 million in cash.
Once the deal closes as expected by the end of the year, Pavonia Life Insurance Co. of Michigan will operate under the Aspida brand. As of March, Pavonia had approximately $1.1 billion in assets and approximately $76 million in statutory capital and surplus.
With more than 170 employees, Pavonia has historically offered life insurance, annuities, and reinsurance products and services. It currently is licensed in 49 states and the platform has operated in multi-channel distribution networks with relationships covering more than 4,700 agents and subgroups.
“The launch of Aspida Financial and its plan for growth is the next evolution of Ares’ existing insurance platform, Ares Insurance Solutions, which now has over 100 insurance investors with $15 billion in assets invested across our products,” says Michael Arougheti, president and CEO of Ares.
“We are excited to expand our presence in the growing insurance sector and to utilize Ares’ extensive capabilities for our first control acquisition of an insurance company that we can grow organically through new distribution channels and potentially inorganically through reinsurance and acquisitions. We have strong conviction that Ares can use its breadth, experience and scale to help Aspida become a market-leading insurance company.”