Minnesota-based Securian Financial Group has agreed to acquire two businesses from American Modern Insurance Group of Ohio, for undisclosed amount.
Securian will acquire American Modern Life Insurance Company (AMLIC) and its subsidiary, Southern Pioneer Life Insurance Company (SPLIC) and will integrate the acquired business into its St Paul operations in 2012.
The acquisition will increase the scale of Securian’s credit protection business, a relatively small part of its operations, by 25%.
AMLIC and SPLIC provides credit life and disability insurance and debt protection programs provided to customers of financial institutions, all of which Securian offers.
Securian Financial Group executive vice president Christopher Hilger said this acquisition expands the presence and gives the opportunity to serve new clients and distributors.
Securian underwrites credit life and disability insurance in the US measured in direct written premium according to the Consumer Credit Industry Association (CCIA).
The transaction is subject to regulatory approval and is expected to close by the end of the year.