Securian Financial Group is making the largest acquisition in its history to expand outside the United States for the first time.
St. Paul-based Securian is spending $142 million to acquire four businesses from Ivari, a Toronto-based insurance company formerly known as Transamerica Life Canada.
“We are excited to enter the Canadian insurance market and diversify Securian internationally with the addition of such a strong group of companies,” said CEO and President Chris Hilger in a statement.
The businesses being acquired include insurance companies Canadian Premier Life Insurance Co. and Legacy General Insurance Co.; insurance distributor CRI Canada; and Selient, a provider of custom point-of-sale technologies for Canadian credit unions.
Those businesses will become independently operated and managed affiliates of Securian and remain in Canada. Nicole Benson has run the Canadian businesses since 2005 and will continue to do so for Securian.
“This is an exciting growth opportunity not only for Canadian Premier Life and CRI Canada, but also for banks, credit unions and retailers throughout Canada,” Benson said in a statement. “We are retaining our vision and operational independence, but will be able to utilize Securian’s expertise in distributing both proprietary and non-proprietary products.”
The deal will add 2 million Canadian customers, 143 employees and offices in Toronto, Vancouver (Burnaby, B.C.), Edmonton, Alta., and Winnipeg.
Securian has made more than a dozen acquisitions in the past 15 years but this will be its first since 2014. Securian Financial Group, whose corporate roots go back 136 years, provides an array of financial services through its subsidiaries including insurance, investment and retirement plans for businesses and individuals.
The deal is expected to close in 2017’s first quarter.