Providing Relief for North Carolina Insureds: Greg Lindberg Sells His Insurance Companies for $307 Million
It’s been a long road to resolution for businessman Greg Lindberg. When he began importing out-of-state insurance companies into North Carolina, he never suspected it would lead to almost two years of imprisonment in a federal prison. He didn’t anticipate a media onslaught against his previously spotless record while building his worldwide company Global Growth.
But, life happens. After Lindberg was wrongly convicted of bribery, his legal team worked on an appeal. Lindberg worked on improving himself and teaching fellow inmates how to succeed in business when asked to do so by his Federal Prison Camp in Montgomery, Alabama.
Now the morass can come to an end. On December 5, 2022 a binding stock purchase agreement for the sale of all of Lindberg’s North Carolina insurance companies was signed.Under the terms stipulated, all four of Lindberg’s North Carolina insurance companies can exit rehabilitation once the sale transaction closes.
“This will let policyholders access all of their policy benefits upon the closing of the sale,” Lindberg says. “The buyer group is backed by reinsurance from an investment firm with over $1 billion in capital under management and includes a well-respected former insurance regulator.”
Upon completion of this new sale, which includes assets held in reinsurance trusts, the North Carolina insurers formerly owned by Lindberg will have $337 million of capital and surplus and $3.22 billion in total assets.
“With $337 million in capital and surplus and $2.1 billion in liquidity the insurance companies will be in a position of excellent financial strength to meet all policyholder obligations,” Lindberg says.
Lindberg explains that total cash and liquid assets, including assets held in reinsurance trusts, will be $2.1 billion, which is equivalent to approximately 95% of the current annuity account value.
For anyone unfamiliar with the inner workings of insurance companies, that amount is an extraordinarily high liquidity number in relation to annuity account value.
“Per the agreement, Global-Growth related assets backing policyholder liabilities (other than assets in the surplus account) shall be no more than $462 million and shall consist of assets that are fully underwritten and approved by the buyer group,” Lindberg says.
The process, however, is not yet completely over. Any policyholder affected should know that the sale is contingent on approval of the new ownership group from the North Carolina Department of Insurance.
“I’ve done my part to protect policyholders,” Lindberg reports. “Now, it’s up to North Carolina Insurance Commissioner Mike Causey to do his part and approve this sale so policyholders can access their funds. Once this sale transaction closes, policyholders will be able to access their full policy benefits.”
“Mr. Lindberg has endured numerous federal and state claims regarding his insurance operations over the last four years,” says Lindberg attorney and spokesperson Susan Estrich says. “This sale indicates that these claims have been demonstrably false. It’s time to stop dog piling claims on Greg Lindberg and allow this sale to proceed so policyholders can access their funds.”
According to Lindberg, Global Growth has over $1.2 billion in pending transactions to facilitate the company’s exit from the insurance business. He reiterates the importance of concluding this matter so policyholders can rest easy.
“The constant stream of false accusations about me and my companies only serves to harm our access to capital markets,” Lindberg adds. “None of this helps policyholders.”
Fingers crossed. Given their struggles over the last two years, one can only imagine Lindberg’s former insureds will heartily welcome this new breakthrough: .
Read the press release from Greg Lindberg here: Greg Lindberg Announces Sale of His North Carolina Insurers For $307 Million
Greg Lindberg is an entrepreneur, leadership coach, and a father. His latest book, 633 Days Inside: Lessons on Life and Leadership, describing his time at Federal Prison Camp Montgomery can be downloaded at www.greglindberg.com or purchased on Amazon. Over the course of his career, he has acquired and transformed more than 100 companies that were either failing or underperforming, each time finding and empowering great talent—people with the same commitment to hard work, learning, entrepreneurship, and a roll-up-your-sleeves attitude. Today, these companies are worth billions of dollars and employ 7,500 people. In 2020, he founded Interrogating Justice, a non-profit organization whose mission is to bring awareness and help advance solutions that hold corrupt government actors accountable, ensure fairness in sentencing, support reentry, and provide access to justice for all. To learn more visit:https://interrogatingjustice.org/