Securian Acquires American Modern Life Insurance, Southern Pioneer
August 22, 2011 by Diana Rosenberg
August 20, 2011 | A.M. Best Company, Inc.
|Copyright:||(c) 2011 A.M. Best Company, Inc.|
|Source:||A.M. Best Company, Inc.|
Securian Financial Groupsaid it plans to acquireAmerican Modern Life Insurance Co.and its subsidiary,Southern Pioneer Life Insurance Co., as it continues to grow through acquisitions.
“They were offering books of business that mesh beautifully with products we already offer,” said Securian spokeswomanMaggie Jensen, who declined to disclose the price of the acquisition.
“We have made no secret of fact we’re in the market for books of business of companies whose products and services blend with our core products and services,” said Jensen. “We’re looking to add scale through acquisitions as well as through organic growth.”
Ohio-based American Modern Life and Southern Pioneer Life have products similar to Securian’s, including credit life and disability insurance and debt-protection programs. American Modern had direct premiums written of$32.6 millionlast year, while Southern Pioneer had direct premiums written of$7.1 million. Securian said the acquisition will increase the scale of its credit-protection business by 25%.
Earlier this year, Securian said it would acquireBalboa Life Insurance Co.andBalboa Life Insurance Company of New York(Best’s News Service,July 8, 2011).
“The expectation is, yes, we’ll be making more acquisitions,” said Jensen. She added that nothing is imminent.
Securian, whose life insurance company subsidiaries includeMinnesota Life Insurance Co.andSecurian Life Insurance Co., provides insurance, debt protection, loan documents and marketing services to more than 4,000 financial institutions acrossthe United States.
American Modern Life Insurance Co.currently has a Best’s Financial Strength Rate of A- (Excellent).The Southern Pioneer Life Insurance Co.currently has a Best’s Financial Strength Rating of B++ (Good).Securian Life Insurance Co.currently had a Best’s Financial Strength Rating of A+ (Superior).
(ByDiana Rosenberg, senior associate editor, BestWeek)