Houlihan Lokey Advises Independent Insurance Group

Houlihan Lokey is pleased to announce that the Independent Insurance Group (IIG) has received up to $89,000,000 of financing from Kilter Finance (Kilter). The transaction closed on June 11, 2021.

Kilter has entered into a binding agreement with IIG to invest up to $89 million alongside a further $25 million from IIG’s existing shareholders, namely its management team and LKCM Headwater Investments. IIG’s subsidiary, Independent Life Insurance Co. (Independent Life), is one of the fastest-growing U.S.-based life insurers.

The investment proceeds will be used to accelerate the growth of its best-in-class structured settlements business, both to increase the statutory surplus of the carrier in its group and to enable Independent Life to execute upon other critical strategic initiatives involving new products, operational enhancements, ratings, potential acquisitions, and other projects.

IIG, primarily via Independent Life, is the first annuity provider to focus exclusively on structured settlements. Its goal is to provide competitive and innovative annuity products that professional consultants can easily integrate into their settlement planning solutions for personal injury victims and their families.

Kilter is an insurance-focused specialty finance company established as a joint venture between its management team, led by Dan Knipe, and leading global investment firm KKR. Through its credit business, KKR has made an initial commitment of up to $500 million, which is to be injected onto Kilter’s balance sheet. This capital can be deployed across the capital structure of its investee companies.

Houlihan Lokey served as the exclusive financial advisor to IIG and assisted in structuring and negotiating the transaction. This deal highlights Houlihan Lokey’s continued position as a leading advisor within the insurance and annuities space.