Midwest Holding Announces Strategic Asset Management Initiative with ORIX Corporation USA

LINCOLN, Neb.Jan. 10, 2022 / PRNewswire / – Midwest Holding Inc. (Midwest, NASDAQ: MDWT), a technology-focused life insurance and annuity platform, announced the closing of a sale of majority ownership of ” a consolidated reinsurance facility to a subsidiary of ORIX company United States (ORIX United States).

Under the terms of the agreement, a subsidiary of ORIX United States purchased approximately 70% of Seneca Incorporated Cell, LLC 2020-01 (SRC1), a Midwestern consolidated reinsurance cell. Midwest established SRC1 in early 2020 as the first reinsurance cell of Seneca Re, a Vermont domiciled reinsurance captive company. SRC1 reinsured premiums from its sister insurance company and Midwestern subsidiary, American Life & Security Corp. ORIX Advisers, LLC, another subsidiary of ORIX United States, will be the manager of the assets underlying SRC1’s reinsurance obligations going forward, replacing Midwest’s asset management arm, 1505 Capital LLC.

“This is a meaningful partnership for the Midwest as we look forward to a long term collaboration with the ORIX team. United States. SRC1 was created as a warehouse vehicle to keep bonuses generated from wholesaling to new capital providers in the future. This transaction is the first demonstration that our warehouse model works, and we are delighted to partner with a quality counterpart such as ORIX United States“said the CEO of Midwest Holding Georgette C. Nicolas.

“We are delighted to announce this strategic initiative with Midwest through this transaction and see this as the start of a strong relationship with the company,” said Art Mbanefo, Chief Investment Officer and Senior Manager. of activities and assets, ORIX United States. “We believe that our asset management and structuring capabilities, as well as our ability to strategically invest our capital, allow us to offer innovative financing solutions to our partners and clients.

Midwest will report the transaction in its 2021 financial statements. The transaction closed on December 30, 2021. In addition, Midwest has also implemented a new warehouse vehicle, SRC3, which will be available for reinsurance transactions.

About Midwest Holding Inc.
Midwest Holding Inc. (NASDAQ: MDWT) is a technology-enabled life insurance and annuity company. Midwest is made up of four distinct and interconnected companies that work together to match individuals seeking to fund their retirement through annuities with asset managers and institutional investors seeking enhanced, uncorrelated returns. Midwest develops and distributes annuity products with capital provided by those investors who are able to form, capitalize and manage their own reinsurance capital vehicles using Midwest’s infrastructure and expertise. Ultimately, the goal is to build a platform capable of delivering significant long-term benefits for business stakeholders. For more information, visit midwestholding.com.

About ORIX Corporation United States (ORIX United States)
Since 1981, ORIX United States has served the mid-market with creative and flexible capital solutions, thanks to a capital base that combines a strong balance sheet with funds from third-party investors seeking access to attractive alternative investments. By focusing on private credit, real estate and private equity, ORIX United States and its subsidiaries – Boston Financial Investment Management, Lument, NXT Capital, RB Capital, ORIX Advisers, Signal Peak Capital Management and ORIX Capital Partners – have more than 1,300 employees in the United States and Brazil. ORIX United States and his family of companies have $ 83.5 billion in assets, including $ 26.1 billion assets under management, $ 47.2 billion in asset maintenance and administration, and approximately $ 11 billion in heritage assets, from September 2021. Its parent company, ORIX Corporation, is an international public financial services company with operations in 28 countries and regions around the world. ORIX Corporation is listed on the Tokyo Stock Exchange (8591) and on the New York Stock Exchange (IX). For more information, visit orix.com.

Investor contact: [email protected]

Media inquiries: [email protected]

Certain statements contained in this press release constitute forward-looking statements. These statements are based on management’s expectations, estimates, projections and assumptions. In some cases, you can identify forward-looking statements by words such as “may”, “may”, “will”, “should”, “expect”, “expect”, “anticipate”, “believe”, “estimate”, “foresee”, “potential”, “intend” or “continue”, the negative of these terms or any other comparable terminology used in connection with any discussion of results of operations or financial performance future. These statements are only predictions and reflect our management’s current good faith expectations regarding future events and are subject to a number of important factors and uncertainties that could cause actual results to differ materially from those described. in forward-looking statements. Factors that could cause our actual results to differ materially from those contemplated in these forward-looking statements include, but are not limited to, the following:

  • the success of changes in our executive leadership;

  • our business plan, including in particular our reinsurance strategy, may not prove to be successful;

  • our reliance on third party insurance marketing organizations to market and sell our annuity insurance products through a network of independent agents;

  • failure to maintain adequate reinsurance;

  • our inability to expand our insurance operations outside of the 22 states and District of Colombia in which we are currently licensed;

  • our annuity products may not be significantly accepted by the market;

  • failure to obtain new customers, retain existing customers or to reduce in force policies by existing customers; and

  • higher service, administrative or general costs due to the implementation of our business plan.

Readers are cautioned not to place undue reliance on these forward-looking statements. For more details on the factors that could affect these expectations, also see the risk factors and other caveats included in Midwest’s filings with the SEC, which can be obtained online at the Securities and Markets website. United States Exchange Commission at sec.gov or on the Midwest website. at midwestholding.com. Except as required by law, Midwest does not undertake to update any forward-looking statements contained in this press release.


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SOURCE Midwest Holding Inc.

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