Nationwide, the privately-held Columbus, Ohio-based insurance giant, has agreed to acquire Jefferson National, the Louisville, Kentucky-based insurer that pioneered the marketing of no-frills variable annuities to registered investment advisors and their clients who wanted a vehicle for tax-deferred investing without expensive insurance features.
Jefferson National serves nearly 4,000 RIAs and fee-based advisors with its product Monument Advisor, an investment-only variable annuity with a flat monthly fee rather than an expense ratio. As of June 30, 2016, Jefferson National reported $4.7 billion in GAAP assets.
Jefferson National is a portfolio company of Napier Park Financial Partners, Napier Park Global Capital’s private equity group.
Nationwide Life Insurance Company will purchase all of the stock of Jefferson National, which will become a wholly-owned subsidiary of Nationwide. Terms of the purchase agreement between Nationwide Life Insurance Company and Jefferson National are not being disclosed. Both parties, which are privately held, expect the transaction to close early in 2017, pending approvals by state and federal regulators.
Deloitte Corporate Finance LLC and Sutherland Asbill & Brennan LLP served as the financial and legal advisors for Nationwide in connection with the transaction. Raymond James & Associates and Sidley Austin LLP served as the financial and legal advisors for Jefferson National.
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