American General to Acquire North Central Life
9 September 1999
American General to Acquire North Central Life
HOUSTON--Sept. 8, 1999--American General today announced that it has signed a definitive agreement to acquire privately held Financial Life Companies Inc., the parent company of North Central Life Insurance Company. The transaction, which is subject to regulatory approvals, is expected to close during the fourth quarter of 1999. Terms of the transaction were not disclosed.North Central Life, headquartered in St. Paul, Minn., is a national provider of credit life and credit disability insurance. The company, which was founded in 1921, had assets of $298 million, equity of $53 million, and insurance in force of $3.5 billion at June 30, 1999. North Central Life uses both general agencies and career representatives to distribute products through its relationships with a broad array of financial institutions and auto dealerships.
In commenting on the transaction, Rodney O. Martin, Jr., vice chairman and group executive - life insurance for American General said, "The acquisition of North Central Life is an excellent complement to the existing credit life operations of American General Assurance Company, which has assets of nearly $900 million, and positions the company for growth in this and other important product lines. On a combined basis, American General will be the nation's second largest distributor of credit life insurance through banks."
American General is one of the nation's largest diversified financial services organizations with assets of $110 billion and market capitalization of $19 billion. Headquartered in Houston, it is a leading provider of retirement services, life insurance and consumer loans to 12 million customers. American General common stock is listed on the New York, Pacific, London and Swiss stock exchanges.
