Tuesday, September 7, 2010

News Industrial Alliance acquires Golden State Mutual

News Industrial Alliance acquires Golden State Mutual ; Industrial Alliance Insurance and Financial Services, a life and health insurance company, has acquired the in-force life policies of California-based Golden State Mutual, or GSM. The transaction was carried out through the company's wholly-owned US subsidiary IA American Life Insurance, based in Scottsdale, Arizona.

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

The acquisition, which will not bring additional goodwill to the balance sheet, is expected to generate a return on shareholders' equity consistent with the company's target guidance of 12-14%.

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