Sagicor Financial Corporation has announced the acquisition of American Founders Life, the life operations of Vesta Insurance Group, Inc. (NYSE: VTA) for US$58.0 million in cash.
The acquisition will be made by the corporation’s Florida-based wholly owned subsidiary Sagicor USA, Inc.
American Founders Life is licensed in 41 states and the District of Columbia. It is a licensed re-insurer in 45 states and D.C., according to a press release.
It is also authorized as a third-party administrator in all 50 states.
The company has four broad categories of products: universal life, term life, mortgage term life and annuities.
Sagicor’s US expansion efforts are being led by Maxine MacLure, president and CEO of Sagicor USA, Inc., and LMC Capital, which served as Sagicor’s financial adviser in the transaction.
Ms MacLure said: ‘The United States is of keen interest to the Sagicor Group and we look forward to partnering with the management team and employees of American Founders.
‘Our team believes American Founders is the right platform for our entrance into the US. The company, with its exceptional people and service, provides the vehicle for us to achieve our vision of superior growth, service, and results,’ she said.
Dodridge D. Miller, Sagicor president and CEO, said: “Sagicor has enjoyed great success from its acquisitions which has spurred the company’s diversity, capabilities and growth. This acquisition will enable Sagicor to accelerate its growth and develop its capacity to provide life insurance products and services in the United States.’
Conclusion of the transaction, expected in the third quarter of 2005, is subject to a number of routine conditions, including approval by the Texas Department of Insurance and the terms of the Hart-Scott-Rodino Antitrust Improvements Act.
Barbados-based Sagicor Financial Corporation has offices in more than 20 countries, offering products including individual and group life insurance, health insurance, personal property and casualty insurance, and fund management.
Additional information about the company can be obtained by visiting
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