Atlanta Life Emerges With Support From Magic Johnson's Life Insurer

By Allison Bell

News October 17, 2023 at 03:28 PM

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EquiTrust Life, a life insurer controlled by Earvin "Magic" Johnson, is helping Atlanta Life Insurance Co. strengthen its operations.

A minority-owned insurance holding company bought Atlanta Life in January.

Atlanta Life announced Friday that it has formed a relationship with EquiTrust Life, a Chicago-based company with $26 billion in assets. EquiTrust Life has agreed to help Atlanta Life expand its product menu and reach.

Eric Holoman, the president and CEO of EquiTrust Life and a former president of Magic Johnson Enterprises, is now also serving as the president and CEO of Atlanta Life.

What it means: Atlanta Life, a 118-year-old Black-owned life insurer, now has backers with deep pockets.

The thinking: Johnson said EquiTrust is supporting Atlanta Life to support entrepreneurship and a Black-owned business.

Holoman said he believes that, run properly, a business like Atlanta Life can be a force for social good.

"We aim to serve as guardians of the community's legacy and stewards of its future," Holoman said.

The history: Atlanta Life Insurance Co. was founded by Alonzo Herndon, who was born into slavery, and his son, Norris Herndon.

The company expanded by acquiring other Black-owned insurers. The Rev. Martin Luther King Jr. was one of its policyholders.

The company has run into turbulence in recent years. In 2021, AM Best downgraded its financial strength rating to C, from C+, citing its weak balance sheet, weak operating performance and limited business profile.

But the rating agency noted that the company had used group life reinsurance deals to increase net premium revenue.

EquiTrust has a B++ AM Best rating.

Eric Holoman. Credit: Atlanta Life

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