DOI Announces Hearings For Two Separate Insurance Company Acquisitions of Control

The first hearing concerns the Commonwealth Annuity and Life & First Allmerica Financial Life Ins. Co.

On December 16, 2020, the Division of Insurance issued a Notice of Hearing entitled, “In the Matter of the Proposed Acquisition of Control of Commonwealth Annuity and Life Insurance Company and First Allmerica Financial Life Insurance Company by Magnolia Parent LLC, KKR Magnolia Holdings LLC, KKR Group Assets Holdings L.P., KKR Group Assets GP LLC, KKR Group Partnership L.P., KKR Group Holdings Corp., KKR & Co. Inc., KKR Management LLP, Henry R. Kravis, and George R. Roberts.”

Based in Brighton, the Commonwealth Annuity and Life & First Allmerica Financial Life Ins. Co. whose products are marketed under the Global Atlantic Financial Group Brand. On July 8, 2020, KKR announced its acquisition of Global Atlantic, with the deal expected to close in late 2020 or early 2021.

For those who are interested in learning more about KKR, the global investment firm was founded in 1976 by Henry Kravis and George Roberts. The private equity firm now has approximately $234 billion in assets under management as of September 2020 with locations in more than 20 cities across four continents and 818,000 employees worldwide. It also has more than 50 million retirees and pensioners “with exposure to KKR’s investments.” In addition to this latest acquisition, acquisitions earlier this year, the company purchased the Accordia Life and Annuity Company a Domestic Insurer in Iowa in 2019.

How to attend or participate in the hearing

Pursuant to Massachusetts General Law c. 175, §206B, a virtual public hearing on the approval of the proposed acquisitions has been scheduled for January 6, 2021 at 2:00 p.m. According to the DOI, it will use TEAMS, a digital meeting program, to host the meeting. As outlined in the Notice, the purpose is:

“[T]o afford those persons identified in M.G.L. c. 175, §206B(d)(2) the opportunity to present evidence, to examine and cross-examine witnesses, to offer oral and written arguments, and to conduct discovery proceedings in the same manner as in the Superior Court Department of the Trial Court. Any discovery proceedings shall be concluded not later than January 3, 2021.”

Any such submissions of public documents in connection with the proposed acquisition, along with any written Notice of Intent to Participate should be emailed to the Division of Insurance at doidocket.mailbox@mass.gov. As outlined in M.G.L. c. 175, §206B(d)(2), all those who wish to submit documents or to participate, must submit a Notice of Intent to Participate by December 28, 2020.

Please note all documents or submissions related to this matter must reference Docket No. F2020-03.

The second hearing announced concerns control of the Coface North America Insurance Company

On December 18, 2020, the Division of Insurance issued a second Notice of Hearing entitled, “In the Matter of the Proposed Acquisition of Control of Coface North America Insurance Company by Arch Capital Group Ltd., Arch Reinsurance Ltd., Arch Financial Holdings Europe II Limited, and Arch Financial Holdings Europe IV Limited.” The hearing is to approve the proposed acquisition of control of this Massachusetts-domiciled insurer.

Coface North America Insurance Company was created in 2003 by the Coface Group. Founded in France in 1946 as an export credit insurance company, The Coface Group, now has a global presence in more than 100 countries worldwide.

Formed in 2001, Arch Capital Group, Ltd. is a Bermuda-based public limited liability company focusing on insurance, reinsurance, and mortgage insurance worldwide.

How to attend or participate in the hearing

Pursuant to Massachusetts General Law c. 175, §206B, a virtual public hearing on the approval of the proposed acquisitions has been scheduled for January 8, 2021 at 2:00 p.m. According to the DOI, it will use TEAMS, a digital meeting program, to host the meeting. As outline in the Notice, the purpose is:

“[T]o afford those persons identified in M.G.L. c. 175, §206B(d)(2) the opportunity to present evidence, to examine and cross-examine witnesses, to offer oral and written arguments, and to conduct discovery proceedings in the same manner as in the Superior Court Department of the Trial Court. Any discovery proceedings shall be concluded not later than January 4, 2021.

Any person identified in M.G.L. c. 175, §206B(d)(2) who wishes to participate in the hearing must submit, on or before December 29, 2020 a Notice of Intent to Participate, setting forth the statutory basis for participation. The Notice must be submitted through doidocket.mailbox@mass.gov, and must specify the basis for the asserted interest in the proposed acquisition of control, if applicable, as well as whether the person intends to make an oral statement, present evidence, cross-examine witnesses, or engage in discovery.”

Please note all documents or submissions related to this matter must reference Docket No. F2020-02.