Eastern Insurance Holdings (EIHI) has completed the transaction of selling its group benefits insurance subsidiary, Eastern Life and Health Insurance (ELH), to Security Life Insurance Company of America in a statutory merger of ELH into Security, with Security continuing as the surviving corporation.

Total transaction consideration to EIHI was $34.1m and consisted of cash and a $1.75m promissory note from Security’s parent. The note bears interest at 4% per annum, payable quarterly, and the principal is due in full 36 months after the closing of the transaction.

Macquarie Capital advised the transaction, while Stevens & Lee acted as counsel, according to EIHI.

Eastern Insurance Holdings operates through its subsidiaries, a domestic casualty insurance group involved in workers’ compensation, a third-party claims administration company and a specialty reinsurance company.

Minnesota-based Security Life Insurance Company of America, along with its New York based sister company Security Health Insurance Company of America has licenses to write business in all 50 states in the US.