Axar Capital Management Announces Acquisition of Pavonia Life Insurance Company of Michigan

NEW YORK--(BUSINESS WIRE)--
Axar Capital Management LP (“Axar”) today announced the completion of its acquisition of Pavonia Life Insurance Company of Michigan (“Pavonia”), a Michigan domiciled life insurance company. Financial terms of the transaction were not disclosed. As part of the acquisition, Axar has partnered with Mark Zesbaugh, an executive with 30 years of experience in the insurance industry, who has been appointed Executive Chairman of Pavonia.

“We are excited to have completed the acquisition of Pavonia,” said Andrew Axelrod, Founder and Managing Partner at Axar Capital. “We are also exceptionally pleased to have Mark Zesbaugh partner with Axar and lead the company as Executive Chairman. Mark is one of the most experienced and dynamic professionals in the industry and we look forward to working with him as he thoughtfully leads the company forward.”

Mark Zesbaugh, Executive Chairman of Pavonia, said, “I am excited by the opportunity to lead Pavonia. Our goal is to ensure the stability of the organization for the benefit of the policyholders and then seek to create longer-term value. With underwriting licenses in 49 states, the District of Columbia and Canada, Pavonia has unique capabilities allowing us to explore sustainable and innovative growth opportunities over the medium term.”

About Mark Zesbaugh

Mark has spent nearly 30 years working in the insurance industry and advising entrepreneurial businesses. Most recently, Mark served as President and CEO of Security Life, a national life & health insurance carrier. Mark orchestrated the company’s successful turnaround and ultimate sale in 2016. From 1990 to 2007, Mark was instrumental in helping to build LifeUSA (a start-up Life Insurer, acquired by Allianz Life in 1999), leading the business as CFO from 1994-2002, and then as CEO from 2002-2007. During his tenure as CEO at Allianz Life, reserves grew from $10 billion to more than $70 billion. Mark is a graduate of the University of St. Thomas, with a B.A. in Accounting. He is also a Certified Public Accountant and a Chartered Financial Analyst.

Legal counsel to Axar included Debevoise & Plimpton LLP, Dykema (Michigan) and Conyers (Cayman).

About Axar Capital Management LP

Axar Capital Management LP is an investment manager focused on value-oriented and opportunistic investing. Axar's investment team focuses on opportunities across the capital structure in complex situations, event driven opportunities and as a provider of debt and equity solutions that allow its partners and portfolio companies to realize their long-term value potential. For more information, please go to www.axarcapital.com.

About Pavonia Life Insurance Company of Michigan

Founded in 1980, Pavonia is a Michigan domiciled life insurance company licensed to underwrite business in 49 states, the District of Columbia and Canada.

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Media

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Dan Gagnier/Lindsay Barber
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Source: Axar Capital Management LP