NU Online News Service, May 29, 4:53 p.m. – StanCorp Financial Group Inc., Portland, Ore., has agreed to acquire the group disability insurance and group life insurance operations of Teachers Insurance and Annuity Association, New York, through a reinsurance arrangement with a value of about $75 million.
StanCorp, which is making the deal through its Standard Insurance Company subsidiary, will also add $130 million in capital to the TIAA subsidiaries to “maintain targeted capitalization,” StanCorp says.
StanCorp hopes to get permission from New York state insurance regulators to complete the deal by September.
The TIAA group insurance operations include 1,800 group contracts that cover 650,000 insured lives and generate $180 million in annual premium revenue, StanCorp says.
StanCorp collected $1.2 billion in premium revenue in 2001, meaning that the TIAA deal could increase its annual revenue about 15%
StanCorp says it plans to manage TIAA group claims from its claims offices in White Plains, N.Y., and Portland, Ore.
The StanCorp underwriting and customer service in South Portland, Maine, will provide contract and administrative support, the company says.