Former NBA Star Magic Johnson Buys Controlling Interest in EquiTrust Life
June 30, 2015 by Dennis Gorski
Magic Johnson Enterprises, a business conglomerate founded by National Basketball Association Hall of Fame player Earvin “Magic” Johnson, said it has completed a majority purchase of Illinois-domiciled EquiTrust Life Insurance Co. Terms were not disclosed.
The purchase gives the group a greater-than-60% controlling share of the company, which has $14.5 billion in assets under management, MJE said in a statement. EquiTrust distributes life insurance, private placement life insurance and fixed annuity products via a network of independent agents and brokers, according to BestLink. The company wrote $2.62 billion in direct premium in 2014, $1.8 billion (69%) of which was in individual annuities, according to BestLink.
In addition, EquiTrust is one of the country’s top 10 writers of fixed annuities, according to BestLink. The company was founded in 1997 as a stock company and is part of Delaware-based Guggenheim Partners Investment Management group, which bought the insurer in August, 2013.
The fixed annuity sector has seen strong growth recently, with sales rising more than 21% in 2014 compared to 2013 totals (Best’s News Service, March 20, 2015).
“EquiTrust provides 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, MJE’s chairman and chief executive officer. “It’s not only groundbreaking, but continues my mission to invest in businesses where we can make a positive impact in the community.”
Johnson founded MJE in 1987. He played 13 seasons as point guard for the Los Angeles Lakers and helped guide the team to five championships. MJE’s holdings include stakes in Major League Baseball’s Los Angeles Dodgers, restaurants, entertainment outlets and media companies, according to magicjohnson.com.
EquiTrust has a current Best’s Financial Strength Rating of B++ (Good).
