PriyaPatel
TLDR:
- Bestow is selling its life insurance unit to focus on providing tech services to other life and annuity companies.
- The parent company of North American Company for Life and Health, Sammons Financial, has agreed to acquire Bestow Life.
Key Elements:
Bestow, a Dallas-based insurance technology firm, has decided to sell its Bestow Life Insurance Co. subsidiary. The company plans to shift its focus to providing services for other life and annuity enterprises rather than on writing its own insurance products. Sammons Financial, the parent company of North American Company for Life and Health, has agreed to acquire Bestow Life pending regulatory approvals.
Bestow’s CEO, Melbourne O’Banion, mentioned that the acquisition of Bestow Life was done to showcase what the company’s systems can do to life and annuity companies. Bestow was founded in 2016 and has raised over $137 million in capital from investors, including Sammons. In 2020, Bestow acquired Centurion Life from Wells Fargo for $2.3 million. Bestow Life reported a net loss in 2023 but generated significant revenue from direct first-year individual life premiums.
Sammons sees the acquisition as an opportunity to expand into new markets alongside its existing life insurance companies. The deal is expected to be completed pending regulatory approvals by June.
