Jose Montemayor, a former Texas insurance commissioner and a principal in an insurance-focused private equity firm, is leading efforts to acquire a Virginia insurer that has been in receivership since February 2009.
The Virginia State Corporation Commission has worked out a negotiating agreement with Prosperity Life Insurance Group L.L.C., Austin, that could lead to the sale of Shenandoah Life Insurance Company, Roanoke, Va., officials say.
Alfred Gross, the Virginia insurance commissioner, has been Shenandoah Life's deputy receiver and has been trying to rehabilitate the company.
When Shenandoah Life was placed in receivership, it was writing life insurance, annuities and dental insurance in 31 states and the District of Columbia. The company has not been selling new coverage but has been paying most types of claims.
Gross and Prosperity Life are still negotiating a definitive purchase agreement, and any agreement would have to be approved by the State Corporation Commission, officials say.
Montemayor, who was the Texas commissioner from 1992 and 2005, is now president of Prosperity Life Insurance Group L.L.C., which was formed in March, and of Prosperity Life Insurance Group Inc., Austin, a holding company formed in May.
