Sierra Financial Holdings, LLC has received final regulatory approval from the Texas Department of Insurance to acquire Preferred Security Life Insurance Company, a Texas-domiciled life insurance carrier. The transaction is expected to close on April 1.
Preferred Security Life Insurance Company, founded in 1994, is a stipulated premium life insurance provider with operational headquarters in Colorado Springs, Colorado.
Sierra Financial Holdings, headquartered in Houston, operates in the financial services industry with a focus on insurance and mortgage products.
The company’s subsidiaries include Sierra Mortgage Capital, a nationwide closed loan mortgage conduit acquiring first lien residential whole loans; 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, a Houston-based insurance agency specializing in life insurance.
Preferred Security Life president Dennis Haley said the acquisition adds a life insurance option to Sierra’s portfolio, expanding its financial services offerings.
Sierra Financial’s further expansion in the life insurance segment is in line with the wider market trend.
The US life and health (L&H) insurance sectors saw growth in 2024, reflecting shifts in financial performance and setting the stage for anticipated trends in the current year.
The life insurance industry continued its growth trajectory, with premiums reaching approximately $15.9 billion in 2024, marking a new record. LIMRA notes that this growth underscores the sustained consumer interest in life insurance products post-pandemic.
Meanwhile, the health insurance market expanded significantly, with revenues projected to reach $1.5 trillion. This growth is attributed to factors such as increased healthcare utilization and rising medical costs.
Projections indicate that health insurance costs for US employers will also rise 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 expenses associated with advanced medical treatments.
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