Hildene Capital to Acquire SILAC Insurance Company for $550M

Hildene Capital Management has entered into an agreement to acquire SILAC, Inc., the parent company of SILAC Insurance Company, in a transaction valued at approximately $550 million. This acquisition will provide Hildene, an $18+ billion credit-focused alternative asset manager, full ownership of SILAC, a fixed and fixed indexed annuity provider operating in 48 states and the District of Columbia from Carmel, Indiana. The deal builds on Hildene’s prior involvement with SILAC, including a strategic minority investment in 2022 and a reinsurance arrangement through its Cayman-based reinsurer, Hildene Re SPC, Ltd. Since 2023, Hildene has managed part of SILAC’s investment portfolio and plans to oversee all investment assets post-acquisition. Regulatory approvals will be necessary for the transaction, with expected completion by mid-2026, subject to customary conditions. The acquisition is fully cash-based and includes all common equity of SILAC. SILAC originated around $2.5 billion in annuities in 2024, mainly fixed indexed annuities, with reported capital and surplus of approximately $505 million and total admitted assets near $10 billion as of September 30. The deal aligns with broader market growth trends, with LIMRA reporting $226.1 billion in U.S. annuity sales in the first half of 2025, marking a 4% increase year-over-year. Fixed-rate deferred annuities alone accounted for $45.2 billion in sales in Q2 2025. Leadership changes are anticipated following the acquisition; G. Daniel Acker will assume the CEO role, succeeding Stephen Hilbert. Industry forecasts from LIMRA project U.S. annuity sales will exceed $400 billion in 2025, driven by product innovation, expanded capitalization, and increased investor demand for guaranteed income solutions. Hildene’s leadership sees the acquisition as a means to enhance asset management capabilities and broaden product offerings to better serve policyholders and the market’s evolving annuity needs.