St. Paul-based Securian Financial Group, Inc., on Thursday announced that it is acquiring two life insurance companies from a subsidiary of Bank of America.
Securian will buy Balboa Life Insurance Company and Balboa Life Insurance Company of New York. Financial terms of the transaction were not disclosed. The deal is expected to close on October 1.
Securian provides insurance, debt protection, loan documents, and marketing services to financial institutions. The company said that the businesses it is buying provide products including mortgage accidental death insurance, accidental death and dismemberment coverage, and individual term life insurance.
According to a report by Bloomberg, Bank of America acquired the insurance operations in 2008 when it purchased Countrywide Financial Corporation.
Securian said that it will integrate the two acquired businesses into its St. Paul headquarters operations in 2012.
"This acquisition increases the scale of our financial institution business and further demonstrates our commitment to this marketplace," Christopher Hilger, executive vice president of Securian Financial Group, said in a statement. "As providers exit the market, we view this as an opportunity to increase our presence."
Securian Financial Group is the holding company of a group of financial services businesses, including Minnesota Life Insurance Company, Advantus Capital Management, Securian Financial Services, Inc., and several others. It is among Minnesota's five largest private companies.