Sierra Financial Holdings, LLC has received the green light from the Texas Department of Insurance, paving the way for its acquisition of Preferred Security Life Insurance Company, a Texas-based life insurance carrier. The deal is expected to close on April 1st.
Preferred Security Life Insurance Company, founded in 1994, provides stipulated premium life insurance and operates from its headquarters in Colorado Springs, Colorado. Sierra Financial Holdings, headquartered in Houston, operates within the financial services industry, specializing in insurance and mortgage products. Its subsidiaries include Sierra Mortgage Capital, which focuses on residential mortgages; Sierra Lending Group, a retail mortgage originator in Texas; Sierra Lending Corporation, which offers similar products in California; and Sierra Insurance Services, an insurance agency also based in Houston.
“This acquisition allows us to add a life insurance option to our portfolio,” said Dennis Haley, president of Preferred Security Life, “expanding our offerings within the financial services sector.”
Growth in the Life and Health Insurance Sectors
Sierra Financial’s expansion into the life insurance segment aligns with a broader market trend. The U.S. life and health (L&H) insurance sectors experienced growth in 2024, which is setting the stage for predicted trends in the current year. The life insurance industry continued its upward trajectory, with premiums reaching approximately $15.9 billion in 2024, setting a new record. LIMRA noted that this growth indicates enduring consumer interest in life insurance products even after the pandemic.
Meanwhile, the health insurance market saw significant expansion, with revenues projected to reach $1.5 trillion. This growth is attributed to factors like higher healthcare utilization and climbing medical costs. Projections also indicate that health insurance costs for U.S. employers will rise nearly 6% in 2025, marking the third consecutive year of substantial increases. This trend is being driven by the rising costs of medical services, increased utilization, and expenses connected to advanced medical treatments.
