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| September 03, 2010: Canadian Life Insurers Continue To Acquire US Life Insurers...Industrial Alliance Acquires Golden State Mutual... |
{Based primarily on press release by Industrial Alliance}: Industrial Alliance Insurance and Financial Services Inc. (referenced in this note as "Industrial Alliance" or "the Company") announced today that it has now completed the acquisition of the in-force life policies of the California-based life insurer, Golden State Mutual (GSM). The transaction was carried out through the Company's wholly-owned U.S. subsidiary, IA American Life Insurance Company ("IA American"), based in Scottsdale, Arizona.
The GSM block of business, which was acquired for a ceding commission of approximately US$11 million, involves 120,000 life insurance policies with a face amount of close to US$500 million. For the year ended December 31, 2009, total premiums amounted to US$9 million and invested assets were US$70 million. The acquisition, which is not expected to bring additional goodwill to the balance sheet, is expected to generate a return on shareholders' equity consistent with the Company's target guidance of 12-14%. The Company's pro forma solvency ratio of 215% at June 30th, 2010, reflecting the conclusion of the earlier acquisition of American-Amicable on July, 20, 2010, remains unchanged.
Established in 1925, Golden State Mutual was the largest minority-owned life insurance company in California. It provided traditional life insurance products to mid-market customers in 17 states. As was the case with several other life insurers in the US, GSM was placed into conservation on September 30, 2009 when its capital position dropped below minimum thresholds required by the State of California.
E.&O.E.
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| HEADLINES |
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| September 03, 2010: Canadian Life Insurers Continue To Acquire US Life Insurers...Industrial Alliance Acquires Golden State Mutual... |
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| September 01, 2010: US and Canadian consumers and brokers tap into savings and better life insurance values with QuotesOnTap(R) on SmartPhones and SmartTablets... |
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| August 30, 2010: LIMRA Study: Individual life insurance ownership in the US drops to a 50-year low... |
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| Aug 16, 2010: QuotesOnTap, North America's first and only fully self-contained independent multiple company life insurance quotation and comparison tool for the new generation of SmartPhones rapidly gains popularity and is being further enhanced... |
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