Sierra Financial to Acquire Preferred Security Life
Sierra Financial Holdings, LLC has been given the green light by the Texas Department of Insurance to acquire Preferred Security Life Insurance Company, a life insurance carrier based in Texas. The transaction is anticipated to conclude on April 1.
Preferred Security Life Insurance Company, established in 1994, is a provider of stipulated premium life insurance and has its operational headquarters in Colorado Springs, Colorado. Sierra Financial Holdings, headquartered in Houston, operates within the financial services sector, offering a range of insurance and mortgage products. Its subsidiaries include Sierra Mortgage Capital, a national closed loan mortgage conduit; Sierra Lending Group, a retail residential mortgage originator serving the Texas market; Sierra Lending Corporation, which offers similar mortgage products in California; and Sierra Insurance Services, an insurance agency based in Houston specializing in life insurance.
According to Dennis Haley, president of Preferred Security Life, the acquisition will broaden Sierra’s portfolio by adding a life insurance option, thus expanding its financial services offerings.
Growth in the Life and Health Insurance Sector
Sierra Financial’s expansion into the life insurance segment aligns with broader market trends. The U.S. life and health (L&H) insurance sectors experienced growth in 2024, indicating shifts in financial performance and setting the stage for projected trends in the current year.
The life insurance industry maintained its upward trajectory, with premiums reaching a record high of approximately $15.9 billion in 2024. LIMRA notes that this growth highlights the sustained consumer interest in life insurance products following the pandemic.
Simultaneously, the health insurance market saw considerable expansion, with revenues projected to reach $1.5 trillion. This growth is attributed to factors such as increased healthcare utilization and rising medical expenses. Projections indicate that health insurance costs for U.S. employers will increase by nearly 6% in 2025, marking the third consecutive year of significant increases. This trend is driven by higher medical service costs, increased utilization, and escalating expenses associated with advancements in medical treatments.
