For the first time in its history, ICMIF member Securian Financial Group is expanding beyond its home territory of the United States. The 136-year-old financial services company has signed a definitive agreement with ivari to purchase its affiliate companies that are leading providers and distributors of insurance products to Canadian banks, credit unions and retailers.
The businesses to be acquired by Securian include insurance manufacturers Canadian Premier Life Insurance Company and Legacy General Insurance Company; distributor CRI Canada; and Selient, which provides customized loan and insurance point-of-sale technologies to Canadian credit unions. The companies will remain in Canada as independently operated and managed affiliates of Securian Financial Group. Nicole Benson, who has led the businesses since 2005, will be Chief Executive Officer.
“We are excited to enter the Canadian insurance market and diversify Securian internationally with the addition of such a strong group of companies,” said Chris Hilger (pictured), Securian’s President and Chief Executive Officer. “This acquisition gives us another platform to reach middle market consumers—a strategic growth priority—by leveraging the collective expertise Securian, Canadian Premier and CRI Canada have as insurance providers and distributors to banks and credit unions.”
Through the transaction, Securian is acquiring companies with:
- 2 million Canadian customers
- $284.6 million in direct premium (2015 CAD)—increasing Securian’s direct premium from financial institutions by 43 percent
- Offices in Toronto, Vancouver (Burnaby), Edmonton and Winnipeg
- 143 employees
Securian has offered loan-protection products through financial institutions in the United States since 1951. In the past 15 years, Securian has made over a dozen growth acquisitions in the financial institution market, including Cherokee National Life Insurance Company, Balboa Life Insurance Company, American Modern Life Insurance Company, and Allied Solutions—one of the largest distributors of products and services to credit unions. Today, Securian is among the leaders in the US financial institution insurance market, offering a wide variety of proprietary and non-proprietary products and services to nearly 4,000 financial institutions.
“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,” said Nicole Benson. “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—giving our financial institution and retail clients more options to meet their customers’ needs.”
The transaction is expected to close in the first quarter of 2017.
