| |
Okapi Partners LLC
|
| |
| |
1212 Avenue of the Americas, 17th Floor
New York, NY 10036 |
| |
| |
Banks and Brokerage Firms Call: 1-212-297-0720
|
| |
| |
Stockholders and All Others Call Toll Free: 1-844-203-3605
|
| |
| |
E-Mail: info@okapipartners.com
|
| |
|
John Hompe
Board Chair |
| |
Georgette Nicholas
Chief Executive Officer |
|
|
John Hompe
Board Chair |
| |
Georgette Nicholas
Chief Executive Officer |
|
| |
Okapi Partners LLC
|
| |
| |
1212 Avenue of the Americas, 17th Floor
New York, NY 10036 |
| |
| |
Banks and Brokerage Firms Call: 1-212-297-0720
|
| |
| |
Stockholders and All Others Call Toll Free: 1-844-203-3605
|
| |
| |
E-Mail: info@okapipartners.com
|
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| | | | | A-1 | | | |
| | | | | B-1 | | |
| |
Okapi Partners LLC
|
| |
| |
1212 Avenue of the Americas, 17th Floor
New York, NY 10036 |
| |
| |
Banks and Brokerage Firms Call: 1-212-297-0720
|
| |
| |
Stockholders and All Others Call Toll Free: 1-844-203-3605
|
| |
| |
E-Mail: info@okapipartners.com
|
| |
| |
Okapi Partners LLC
1212 Avenue of the Americas, 17th Floor
New York, NY 10036
Banks and Brokerage Firms Call: 1-212-297-0720
Stockholders and All Others Call Toll Free: 1-844-203-3605
E-Mail: info@okapipartners.com
|
| |
| | |
2023E
|
| |
2024E
|
| |
2025E
|
| |
2026E
|
| ||||||||||||
Total Premiums Written(1)
|
| | | $ | 1,125 | | | | | $ | 1,406 | | | | | $ | 1,688 | | | | | $ | 2,025 | | |
Percent of Premium Ceded
|
| |
65%
|
| |
75%
|
| |
75%
|
| |
75%
|
| ||||||||||||
Total Revenue(2)
|
| | | $ | 103.4 | | | | | $ | 150.2 | | | | | $ | 190.7 | | | | | $ | 235.9 | | |
Total Expenses(3)
|
| | | $ | 70.9 | | | | | $ | 94.0 | | | | | $ | 116.1 | | | | | $ | 139.7 | | |
Operating Income(4)
|
| | | $ | 32.5 | | | | | $ | 56.3 | | | | | $ | 74.6 | | | | | $ | 96.2 | | |
Net Income(5)
|
| | | $ | 23.6 | | | | | $ | 42.8 | | | | | $ | 57.9 | | | | | $ | 74.2 | | |
Fully Diluted Earnings Per Share(6)
|
| | | $ | 3.61 | | | | | $ | 5.87 | | | | | $ | 7.62 | | | | | $ | 9.66 | | |
Equity Capital Contributed
|
| | | $ | 55.1 | | | | | $ | 16.4 | | | | | $ | 8.1 | | | | | $ | 2.7 | | |
Debt Capital Contributed
|
| | | $ | 48.9 | | | | | $ | 13.8 | | | | | $ | 14.8 | | | | | $ | 20.2 | | |
Total Investments
|
| | | $ | 1,252 | | | | | $ | 1,642 | | | | | $ | 2,040 | | | | | $ | 2,529 | | |
Total Assets
|
| | | $ | 1,317 | | | | | $ | 1,721 | | | | | $ | 2,137 | | | | | $ | 2,647 | | |
Reserves
|
| | | $ | 1,076 | | | | | $ | 1,407 | | | | | $ | 1,742 | | | | | $ | 2,155 | | |
Total Liabilities
|
| | | $ | 1,125 | | | | | $ | 1,470 | | | | | $ | 1,820 | | | | | $ | 2,253 | | |
Stockholders’ Equity (excluding accumulated other comprehensive income, or “AOCI”)
|
| | | $ | 192.1 | | | | | $ | 251.3 | | | | | $ | 317.3 | | | | | $ | 394.3 | | |
Fully Diluted Shares Outstanding
|
| | | | 6.535 | | | | | | 7.278 | | | | | | 7.598 | | | | | | 7.688 | | |
Book Value Per Share (excluding AOCI)(7)
|
| | | $ | 29.40 | | | | | $ | 34.53 | | | | | $ | 41.76 | | | | | $ | 51.28 | | |
Selected Company
|
| |
P/BVPS
(excluding AOCI) |
| |
2023E
P/Op. EPS12 |
| |
2024E
P/Op. EPS12 |
| |||||||||
MetLife, Inc.
|
| | | | 1.07x | | | | | | 7.3x | | | | | | 6.7x | | |
Prudential Financial, Inc.
|
| | | | 0.88x | | | | | | 7.1x | | | | | | 6.7x | | |
Principal Financial Group, Inc.
|
| | | | 1.32x | | | | | | 11.3x | | | | | | 10.0x | | |
Corebridge Financial Inc.
|
| | | | 0.51x | | | | | | 4.6x | | | | | | 3.6x | | |
Equitable Holdings, Inc.
|
| | | | 1.06x | | | | | | 4.7x | | | | | | 3.9x | | |
Voya Financial, Inc.
|
| | | | 1.32x | | | | | | 9.4x | | | | | | 8.3x | | |
Lincoln National Corporation
|
| | | | 0.34x | | | | | | 2.6x | | | | | | 2.2x | | |
American Equity Investment Life Holding Company
|
| | | | 0.68x | | | | | | 6.9x | | | | | | 6.3x | | |
Jackson Financial Inc.
|
| | | | 0.26x | | | | | | 2.2x | | | | | | 1.9x | | |
Brighthouse Financial Inc.
|
| | | | 0.30x | | | | | | 2.9x | | | | | | 2.5x | | |
CNO Financial Group Inc.
|
| | | | 0.72x | | | | | | 8.0x | | | | | | 7.4x | | |
Date Announced
|
| |
Acquiror
|
| |
Target
|
| |
Deal Value
(in millions) |
| |
Deal
Value/ LTM GAAP EPS |
| |
Deal
Value/ BVPS (excluding AOCI) |
| |||||||||
08/09/2021
|
| |
Brookfield Asset Management Reinsurance Partners Ltd.
|
| |
American National Group, Inc.
|
| | | $ | 5,111 | | | | | | 5.8x | | | | | | 0.78x | | |
05/03/2021
|
| |
Farm Bureau Property &
Casualty Insurance Company |
| |
FBL Financial Group Inc.
|
| | | $ | 1,498 | | | | | | 20.7x | | | | | | 1.35x | | |
01/27/2021
|
| |
Massachusetts Mutual Life Insurance Company
|
| |
Great American Life Insurance Company
|
| | | $ | 3,500 | | | | | | 8.3x | | | | | | 1.22x | | |
07/08/2020
|
| |
KKR & Co. Inc.
|
| |
Global Atlantic Financial Group Limited
|
| | | $ | 4,354 | | | | | | 6.1x | | | | | | 1.00x | | |
02/07/2020
|
| |
Fidelity National Financial, Inc.
|
| |
FGL Holdings
|
| | | $ | 2,771 | | | | | | 26.9x | | | | | | 1.35x | | |
10/27/2017
|
| |
Aquarian Investors Heritage
Holdings, LLC |
| |
Investors Heritage Capital Corporation
|
| | | $ | 60 | | | | | | N/A | | | | | | 1.18x | | |
05/24/2017
|
| |
CF Corporation
|
| |
Guaranty Life Insurance Company
|
| | | $ | 1,835 | | | | | | 16.7x | | | | | | 1.13x | | |
09/29/2015
|
| |
Nassau Reinsurance Group Holdings L.P.
|
| |
The Phoenix Companies Inc.
|
| | | $ | 217 | | | | | | N/A | | | | | | 0.47x | | |
07/13/2012
|
| |
Athene Holding Ltd.
|
| |
Presidential Life Corporation
|
| | | $ | 415 | | | | | | 11.8x | | | | | | 0.69x | | |
| | |
Lower Quartile
|
| |
Mean
|
| |
Median
|
| |
Upper Quartile
|
| ||||||||||||
Premium paid % to one-day prior closing price
|
| | | | 12.1% | | | | | | 33.4% | | | | | | 26.3% | | | | | | 45.5% | | |
Premium paid % to 30 days prior closing price
|
| | | | 18.9% | | | | | | 38.6% | | | | | | 33.5% | | | | | | 49.1% | | |
| | |
Lower Quartile
|
| |
Mean
|
| |
Median
|
| |
Upper Quartile
|
| ||||||||||||
Premium paid % to one-day prior closing price
|
| | | | 10.6% | | | | | | 31.7% | | | | | | 24.7% | | | | | | 41.8% | | |
Premium paid % to 30 days prior closing price
|
| | | | 17.6% | | | | | | 35.3% | | | | | | 30.1% | | | | | | 44.5% | | |
Name
|
| |
Cash ($)(1)
|
| |
Equity ($)(2)
|
| |
Benefits ($)(3)
|
| |
Total ($)
|
|
Georgette Nicholas
|
| |
$612,500
|
| |
$273,350
|
| |
$396
|
| |
$886,246
|
|
Michael Minnich
|
| |
$547,050
|
| |
—
|
| |
$0
|
| |
$547,050
|
|
Eoin Elliffe
|
| |
$966,455
|
| |
$303,400
|
| |
$30,852
|
| |
$1,300,707
|
|
Elliot Sperber
|
| |
$512,600
|
| |
$331,450
|
| |
$0
|
| |
$844,050
|
|
Thomas Bumbolow
|
| |
$516,760
|
| |
$253,900
|
| |
$20,568
|
| |
$791,228
|
|
Name
|
| |
Shares
(#)(1) |
| |
Shares
($)(2) |
| |
Unvested
Company Options (#)(3) |
| |
Unvested
Company Options ($) |
| |
Vested
Company Options (#)(4) |
| |
Vested
Company Options ($) |
| |
RSUs
(#)(5) |
| |
RSUs
($) |
| |
Total
($) |
|
Named Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Georgette Nicholas
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
30,000
|
| |
$318,900
|
| |
—
|
| |
—
|
| |
$318,900
|
|
Michael Minnich
|
| |
500,885(6)
|
| |
$13,523,895
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
$13,523,895
|
|
Eoin Elliffe
|
| |
—
|
| |
—
|
| |
20,000
|
| |
$303,400
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
$303,400
|
|
Elliot Sperber
|
| |
1,350
|
| |
$36,450
|
| |
—
|
| |
—
|
| |
27,700
|
| |
$334,150
|
| |
—
|
| |
—
|
| |
$370,600
|
|
Thomas Bumbolow
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
20,000
|
| |
$253,900
|
| |
—
|
| |
—
|
| |
$253,900
|
|
Non-Employee Directors | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Kevin Sheehan
|
| |
43,563
|
| |
$1,176,201
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
1,163
|
| |
$31,401
|
| |
$1,207,602
|
|
Yadin Rozov
|
| |
22,661
|
| |
$611,847
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
1,163
|
| |
$31,401
|
| |
$643,248
|
|
Nancy Callahan
|
| |
3,401
|
| |
$91,827
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
1,163
|
| |
$31,401
|
| |
$123,228
|
|
Diane Davis
|
| |
3,401
|
| |
$91,827
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
1,163
|
| |
$31,401
|
| |
$123,228
|
|
John Hompe
|
| |
3,534
|
| |
$95,418
|
| |
67
|
| |
$134
|
| |
33
|
| |
$66
|
| |
1,163
|
| |
$31,401
|
| |
$127,019
|
|
Firman Leung
|
| |
3,434
|
| |
$92,718
|
| |
67
|
| |
$134
|
| |
33
|
| |
$66
|
| |
1,163
|
| |
$31,401
|
| |
$124,319
|
|
| | |
Shares of Company Common
Stock Beneficially Owned |
| |||||||||
Name
|
| |
Number
|
| |
Percent
|
| ||||||
Named Executive Officers and Directors: | | | | | | | | | | | | | |
Georgette Nicholas(4)
|
| | | | 10,427 | | | | | | * | | |
Michael Minnich(5)
|
| | | | 530,785 | | | | | | 14.2% | | |
Eoin Elliffe(6)
|
| | | | — | | | | | | * | | |
Dan Maloney(7)
|
| | | | — | | | | | | * | | |
Elliot Sperber (8)
|
| | | | 1,350 | | | | | | * | | |
Thomas Bumbolow (9)
|
| | | | — | | | | | | * | | |
John Hompe(10)
|
| | | | 4,764 | | | | | | * | | |
Firman Leung(10)
|
| | | | 4,664 | | | | | | * | | |
Nancy Callahan(11)
|
| | | | 4,564 | | | | | | * | | |
Diane Davis(11)
|
| | | | 4,564 | | | | | | * | | |
Yadin Rozov(11)
|
| | | | 23,824 | | | | | | * | | |
Kevin Sheehan(11)
|
| | | | 44,726 | | | | | | 1.2% | | |
Named Executive Officers and Directors as a Group (12 persons)
|
| | | | 629,668 | | | | | | 16.9% | | |
Beneficial Owners of More than Five Percent: | | | | | | | | | | | | | |
Crestline Assurance Holdings LLC(1)
|
| | | | 445,171 | | | | | | 11.9% | | |
A. Michael Salem(3)
|
| | | | 279,338 | | | | | | 7.5% | | |
Knott Partners, L.P.(2)
|
| | | | 390,241 | | | | | | 10.5% | | |
| |
Okapi Partners LLC
1212 Avenue of the Americas, 17th Floor
New York, NY 10036
Banks and Brokerage Firms Call: 1-212-297-0720
Stockholders and All Others Call Toll Free: 1-844-203-3605
E-Mail: info@okapipartners.com
|
| |
| | | | | A-2 | | | |
| | | | | A-2 | | | |
| | | | | A-2 | | | |
| | | | | A-2 | | | |
| | | | | A-2 | | | |
| | | | | A-2 | | | |
| | | | | A-2 | | | |
| | | | | A-3 | | | |
| | | | | A-3 | | | |
| | | | | A-3 | | | |
| | | | | A-5 | | | |
| | | | | A-5 | | | |
| | | | | A-5 | | | |
| | | | | A-6 | | | |
| | | | | A-6 | | | |
| | | | | A-8 | | | |
| | | | | A-8 | | | |
| | | | | A-9 | | | |
| | | | | A-10 | | | |
| | | | | A-12 | | | |
| | | | | A-13 | | | |
| | | | | A-13 | | | |
| | | | | A-14 | | | |
| | | | | A-15 | | | |
| | | | | A-16 | | | |
| | | | | A-16 | | | |
| | | | | A-16 | | | |
| | | | | A-16 | | | |
| | | | | A-18 | | | |
| | | | | A-19 | | | |
| | | | | A-19 | | | |
| | | | | A-21 | | | |
| | | | | A-21 | | | |
| | | | | A-21 | | | |
| | | | | A-22 | | | |
| | | | | A-22 | | | |
| | | | | A-23 | | | |
| | | | | A-23 | | | |
| | | | | A-23 | | | |
| | | | | A-24 | | |
| | | | | A-24 | | | |
| | | | | A-26 | | | |
| | | | | A-26 | | | |
| | | | | A-26 | | | |
| | | | | A-26 | | | |
| | | | | A-26 | | | |
| | | | | A-27 | | | |
| | | | | A-27 | | | |
| | | | | A-27 | | | |
| | | | | A-27 | | | |
| | | | | A-27 | | | |
| | | | | A-29 | | | |
| | | | | A-29 | | | |
| | | | | A-30 | | | |
| | | | | A-30 | | | |
| | | | | A-30 | | | |
| | | | | A-30 | | | |
| | | | | A-30 | | | |
| | | | | A-31 | | | |
| | | | | A-31 | | | |
| | | | | A-31 | | | |
| | | | | A-31 | | | |
| | | | | A-31 | | | |
| | | | | A-31 | | | |
| | | | | A-34 | | | |
| | | | | A-34 | | | |
| | | | | A-35 | | | |
| | | | | A-38 | | | |
| | | | | A-39 | | | |
| | | | | A-40 | | | |
| | | | | A-42 | | | |
| | | | | A-44 | | | |
| | | | | A-44 | | | |
| | | | | A-44 | | | |
| | | | | A-44 | | | |
| | | | | A-44 | | | |
| | | | | A-45 | | | |
| | | | | A-45 | | | |
| | | | | A-45 | | | |
| | | | | A-46 | | | |
| | | | | A-46 | | | |
| | | | | A-47 | | |
| | | | | A-47 | | | |
| | | | | A-47 | | | |
| | | | | A-47 | | | |
| | | | | A-48 | | | |
| | | | | A-48 | | | |
| | | | | A-48 | | | |
| | | | | A-48 | | | |
| | | | | A-48 | | | |
| | | | | A-49 | | | |
| | | | | A-49 | | | |
| | | | | A-49 | | | |
| | | | | A-50 | | | |
| | | | | A-52 | | | |
| | | | | A-52 | | | |
| | | | | A-52 | | | |
| | | | | A-63 | | | |
| | | | | A-64 | | | |
| | | | | A-64 | | | |
| | | | | A-64 | | | |
| | | | | A-64 | | | |
| | | | | A-65 | | | |
| | | | | A-65 | | | |
| | | | | A-66 | | | |
| | | | | A-66 | | | |
| | | | | A-66 | | | |
| | | | | A-66 | | | |
| | | | | A-66 | | | |
| | | | | A-67 | | | |
| | | | | A-67 | | | |
| | | | | A-68 | | | |
| | | | | A-69 | | | |
| | | | | A-69 | | |
|
If to Parent or Merger Sub, to:
|
| |
Antarctica Capital LLC
200 Park Avenue, 32nd Floor New York, New York 10166
Attention:
Chandra R. Patel; Inho Choi; David Stortz
Email:
crpatel@antarcticacapital.com;
ichoi@antarcticacapital.com; dstortz@antarcticacapital.com
|
|
| with a copy (which will not constitute notice to Parent or Merger Sub) to: | | |
Kirkland & Ellis LLP
601 Lexington Avenue New York, New York 10022
Attention:
Rajab S. Abbassi, P.C.
Lauren M. Colasacco, P.C.
Michael Amalfe
Email:
rajab.abbassi@kirkland.com
lauren.colasacco@kirkland.com michael.amalfe@kirkland.com
|
|
| If to the Company, to: | | |
Midwest Holding Inc.
2900 South 70th Street, Suite 400 Lincoln, Nebraska 68506
Attention:
Georgette C. Nicholas
Email:
gnicholas@midwestholding.com
|
|
| with a copy (which will not constitute notice to the Company) to: | | |
Fried, Frank, Harris, Shriver & Jacobson LLP
One New York Plaza New York, NY 10004
Attention:
Philip Richter and Randi Lally
Email:
philip.richter@friedfrank.com,
randi.lally@friedfrank.com
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|
|
Insurance Advisory Partners LLC
1270 Avenue of the Americas, Suite 1803 New York, NY 10020 |
| |
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|