Securian Financial is boosting a Canadian business it acquired in 2017 by agreeing to purchase the whole life insurance policies sold in Canada by the Gerber Life Insurance Co.
Securian’s subsidiary, Canadian Premier, will assume the Canadian Gerber Life policies but will no longer market the whole-life policies meant for juveniles.
“Canadian Premier has grown significantly since we acquired the company, and this new book of business will accelerate that momentum,” said Chris Hilger, Securian Financial’s chief executive, in a statement.
Securian will be picking up about 27,000 Gerber Life policies with total annual premiums of $2.7 million. Most of the accounts are whole-life insurance policies aimed at children 12 years and younger.
Cincinnati-based Western & Southern Financial Group, which owns Gerber Life Insurance, will retain the Gerber Life business in the United States.
Securian, which had total revenue of $5.5 billion in 2018, announced the deal to acquire Canadian Premier and several other financial-services businesses in Canada for about $142 million in 2016.
Toronto-based Canadian Premier was founded 60 years ago and offers life, accident, disability and other insurance products for families and businesses. It insures more than 2 million individuals and families across Canada.
“This is an exciting acquisition for Canadian Premier as we focus on growing in the Canadian marketplace,” said Suzette Huovinen, Canadian Premier’s chief executive, in statement.
Terms of the deal were not disclosed. The deal is expected to close in the second quarter.