North Carolina insurance executive and self-proclaimed billionaire Greg Lindberg, who is now awaiting a second trial on corruption charges, says he has a buyer for his struggling insurance companies. But state regulators point out that the liquidation process has already begun.
This week, North Carolina Department of Insurance officials were reviewing Lindberg’s stock purchase proposal.
“It will be reviewed to determine if it meets the requirements of North Carolina law and is in the best interests of policyholders,” DOI Director of Communications Jason Tyson said. “In the meantime, we will continue to move forward with a plan to allow policyholders access to their policies through liquidation.”
State Insurance Commissioner Mike Causey announced in late November that a court had approved the liquidation of Colorado Bankers Life Insurance Co. and Bankers Life Insurance Co., two companies formerly owned by Lindberg. Hours later, an investment firm founded by Lindberg said it opposed liquidation, arguing the companies could be sold and benefits paid more quickly.
On Tuesday, Lindberg’s high-powered public relations effort, which includes a former television news commentator and writer, issued a press release: Universal Financial Holdings LLC has agreed to buy stock in the four insurance companies Carolina-based Lindberg, allowing them out of rehabilitation.
The sale will provide more than $337 million in capital and surplus, Lindberg said.
“The group of buyers is backed by reinsurance from an investment firm with over $1 billion in capital under management and includes a highly respected former insurance regulator,” Lindberg said in the statement.
Universal Financial Holdings does not appear to be related to Universal Insurance Holdings, the Florida-based parent company of Universal Property & Casualty Insurance Co.
Regulators said Lindberg embezzled millions of dollars from some of its insurance companies, investing the assets in its other companies, but leaving insurers in a dire state and unable to pay policyholders. In May, a judge ordered Lindberg to relinquish control of the companies.
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