Close Close

Life Health > Life Insurance

KMG Acquires Kanawha

Your article was successfully shared with the contacts you provided.

NU Online News Service, Dec. 22, 2004, 5:35 p.m. EST

A Minneapolis company has completed a previously announced acquisition of a Lancaster, S.C., life and health insurer.[@@]

KMG America Corp. has agreed to pay about $124 million in cash and about $19 million in promissory note payments for the insurer, for Kanawha Insurance Company.

Kenneth Kuk, a life insurance industry veteran who spent years as a senior executive at ReliaStar Financial Corp., Minneapolis, formed KMG as a vehicle for acquiring Kanawha.

More on this topic

Kanawha sells voluntary and group insurance products through employers in the southeastern United States.

Kuk says he wants to use Kanawha as the basis for creating a national group and worksite insurance company.

In related news, KMG says it has succeeded at raising $191 million through an initial public offering of 21.7 million shares of common stock. The shares are listed on the New York Stock Exchange under the trading symbol KMA.