Oaktree Capital to Take Over Atlantic Coast Life in $1.5B Liability Deal
Oaktree Capital Management, owned by Brookfield, is set to acquire a controlling stake in Atlantic Coast Life Insurance Company from Advantage Capital (A-Cap). The South Carolina-based insurer holds around 6,000 active life policies and over $1.5 billion in liabilities, including annuities. The deal comes amid growing private equity interest in the US insurance sector.
Regulatory concerns had previously surrounded A-Cap due to its financial ties with 777 Partners, the collapsed Miami investment firm. One of its co-founders, Josh Wander, was charged in October with defrauding lenders and investors of $500 million.
The planned acquisition aligns with Oaktree's broader strategy in the insurance market. Senior vice-president Patrick George described it as part of a series of investments made during periods of market transition. In December, the firm backed new life insurer Avocet Partners and created a special vehicle to reinsure commercial policies from Allianz.
A-Cap will keep control of Utah-based insurer Sentinel, with Oaktree also planning to invest in that business. The move follows efforts by A-Cap to stabilise its operations after regulatory scrutiny. The company had previously filed a lawsuit against AM Best over a threatened rating downgrade, aiming to preserve its underwriting capacity. This transaction reflects a wider trend among private equity firms. Since 2020, major players like Apollo and KKR have acquired or invested in at least five significant US life insurance and annuity companies. Examples include Apollo's purchase of Athene in 2022 and KKR's acquisition of Global Atlantic in 2020. Other deals, such as KKR and Apollo's partnerships in Corebridge Financial and Equian, highlight the sector's appeal to investors.
Oaktree's takeover of Atlantic Coast Life marks another step in the expansion of private equity into US insurance. The firm will assume control of an insurer with substantial liabilities and a sizeable policy base. The deal also underscores the ongoing restructuring within the sector as firms seek opportunities during market shifts.
