Canadian Pension Plans Agree to Acquire Another Life Insurer: Offers Deal
What you need to know
- AmeriLife takes on a final cost allocator.
- PensionmarkMeridien is now connected to Lion Street.
- Primerica, Humana, Sun Life, Voya and Anthem have completed previously announced acquisitions.
An insurer that owns two Canadian pension plans acquired its second major US life insurance company this year.
Constellation Insurance Holdings Inc. has agreed to assist Columbian Mutual Life Insurance Company of Binghamton, New York, with the transition to a share charter and up to $ 100 million in cash in exchange for 100% of Columbian Mutual’s shares to invest.
In March, Constellation agreed to acquire another mutual life insurer, Ohio National Financial Services of Cincinnati, for $ 1 billion.
A mutual insurer is an insurance company owned by some or all of the policyholders and not owned by public investors or other outside investors.
Columbian Mutual was founded in 1882 and today sells life insurance across the United States. It has approximately $ 1.8 billion in net worth and 750,000 policyholders.
Constellation is a 2-year company with cash from Caisse de DÃ©pÃ´t et Placement du QuÃ©bec and the Ontario Teachers’ Pension Plan Board.
The agreement between Constellation and Columbia provides that Columbian will use the cash provided by Constellation to fund cash payments to eligible policyholders and to improve Columbian’s capitalization levels and financial valuations.
Constellation plans to keep the Columbian brand and operate Columbian as an independent company.
The companies expect the deal to close between July 1, 2022 and December 31, 2022.
Other offers news
AmeriLife Group LLC has agreed to acquire Maximum benefits for senior citizens, an insurance marketing organization based in Pleasant Grove, Utah that sells end-cost insurance. Customers use end-of-life insurance to cover funeral, burial, cremation, and other death-related costs.