Magic Johnson buys $14.5 billion life insurance company

by Will Ashworth23 Jun 2015
Earvin “Magic” Johnson’s conglomerate completed the acquisition of a majority, controlling interest in EquiTrust Life Insurance Company.

“EquiTrust provides Magic Johnson Enterprises (MJE) a tremendous platform to advocate for financial literacy and assist in creating job opportunities at every level. We will educate and emphasize the importance of life insurance for estate planning and annuities for retirement planning purposes,” said Johnson, CEO and Chairman of MJE. “It’s not only groundbreaking, but continues my mission to invest in businesses where we can make a positive impact in the community.”

The $14.5 billion deal, which represents the largest transaction involving a financial services company from an individual African American entrepreneur or group of African American entrepreneurs, sees MJE gain control of Equtirust, an enterprise that distributes fixed-rate and indexed annuities and life insurance through a national network of more than 23,800 independent agents.

“EquiTrust has grown into a top 10 fixed annuity writer and has produced milestone financial results in recent years,” said Jeffrey Lange, CEO of EquiTrust. “The financial strength and stability of EquiTrust combined with Earvin’s strategic initiative and consumer focus provide for a very bright outlook for the company. I look forward to working with Earvin and his team to continue building on the company’s excellent track record.” 
 

COMMENTS

  • by Ken MacCoy, CHS 2015-06-23 5:26:36 PM

    Other than his well deserved nickname, nothing 'magical' about the deal.

    This is just plain old fashioned good business sense by a very astute gentleman.

    Seriously, other than Confederation Life ....have you ever heard of a life insurance company that didn't make money!

    However, it's great to see Earvin Johnson promoting financial literacy and the importance of life insurance for estate planning and annuities for retirement planning.

    What is really 'magical' is job creation and his mission to invest in businesses that have a positive impact on the community.

    The man is to be admired. I like how he thinks!