Sierra Financial Holdings, LLC has received final regulatory approval from the Texas Department of Insurance to acquire Preferred Security Life Insurance Company, a Texas-based life insurance carrier. The transaction is slated to close on April 1.
Founded in 1994, Preferred Security Life Insurance Company specializes in stipulated premium life insurance and operates out of its headquarters in Colorado Springs, Colorado.
Houston-based Sierra Financial Holdings is a diversified financial services company with a strong presence in the insurance and mortgage sectors. Its subsidiaries include:
- Sierra Mortgage Capital – A national closed loan mortgage conduit acquiring first lien residential whole loans.
- Sierra Lending Group – A retail residential mortgage originator catering to the Texas market.
- Sierra Lending Corporation – A California-based provider of similar mortgage products.
- Sierra Insurance Services – A Houston-based agency specializing in life insurance.
Expansion in the Life & Health Insurance Sector
Sierra Financial’s strategic expansion in the life insurance sector aligns with broader industry growth trends.
In 2024, the U.S. life and health (L&H) insurance sectors experienced significant growth, driven by shifts in financial performance and evolving market dynamics. The life insurance industry continued its upward trajectory, with premiums reaching approximately $15.9 billion—setting a new record. According to LIMRA, this growth reflects sustained consumer interest in life insurance products in the post-pandemic landscape.
Similarly, the health insurance sector saw substantial expansion, with revenues projected to hit $1.5 trillion. This surge is attributed to increased healthcare utilization and rising medical costs.
Looking ahead, projections indicate that health insurance costs for U.S. employers will rise by nearly 6% in 2025, marking the third consecutive year of significant increases. The key drivers behind this trend include escalating medical service costs, heightened utilization, and the growing expenses associated with advanced medical treatments.
With the acquisition of Preferred Security Life Insurance Company, Sierra Financial Holdings continues to strengthen its position in the evolving insurance market, reinforcing its commitment to providing innovative financial solutions.
