Constellation Insurance’s Acquisition of Columbian Mutual Life Insurance

Debevoise & Plimpton advised Constellation Insurance Holdings, while Eversheds Sutherland advised Columbian Mutual in the transaction.

Constellation Insurance Holdings, Inc., backed by institutional investors Caisse de dépôt et placement du Québec (CDPQ) and Ontario Teachers’ Pension Plan Board (Ontario Teachers’), executed its acquisition of Columbian Mutual Life Insurance Company, as part of Columbian’s demutualization process. The strategic transaction provides for Constellation to invest up to $100 million to fund cash payments to eligible policyholders and to significantly strengthen capitalization and financial ratings of Columbian. The transaction is subject to customary conditions, including regulatory approvals and Ohio National’s policyholder approval. It is anticipated that the transaction will close in the first half of 2022. 

Constellation is an insurance holding company targeting acquisitions of life and P&C insurers based in North America. Columbian offers high-quality, affordable life insurance protection to consumers in all 50 states, with $1.8 billion in assets and over 750,000 policyholders. CDPQ is a global investment group managing funds for public retirement and insurance plans. Ontario Teachers’ is the administrator of Canada’s largest single-profession pension plan, with CA$221.2 billion in net assets as of December 31, 2020.

The Debevoise team was led by insurance M&A partner Drew Dutton (Picture) and included insurance M&A associates Susie Kim, Matthew Parelman and Sean Wagnon, employee benefits partner Jonathan Lewis and associate Zain Kazmi, tax associates Kimberly Lee and Robert Nelson-Sullivan, intellectual property associate Tigist Kassahun and litigation associates Michael Gramer and Daniel Joiner.

Involved fees earner: Drew Dutton – Debevoise & Plimpton; Michael Gramer – Debevoise & Plimpton; Daniel Joiner – Debevoise & Plimpton; Tigist Kassahun – Debevoise & Plimpton; Zain Kazmi – Debevoise & Plimpton; Jonathan Lewis – Debevoise & Plimpton; Robert Nelson-Sullivan – Debevoise & Plimpton; Matthew Parelman – Debevoise & Plimpton; Sean Wagnon – Debevoise & Plimpton;

Law Firms: Debevoise & Plimpton;

Clients: Constellation Insurance Holdings;

Author: Sonia Carcano