Industrial Alliance Insurance and Financial Services has completed the acquisition of the in-force life policies of California-based Golden State Mutual (GSM).

Golden State Mutual is a minority-owned life insurance company in California, which provides life insurance products to mid-market customers in 17 US states.

The transaction was carried out through Industrial Alliance’s wholly-owned US subsidiary IA American Life Insurance Company, based in Scottsdale, Arizona.

The GSM block of business, which was acquired for a ceding commission of around $11m, involves 120,000 life policies with a face amount of close to $500m.

Industrial Alliance said that the acquisition 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 30 June 2010, reflecting the conclusion of the acquisition of American-Amicable on 20 July 2010, remains unchanged.