A Midwestern insurer has completed previously announced plans to buy a group benefits business.
Fort Dearborn Life Insurance Company, a unit of Health Care Service Corp., Chicago, has acquired the group life and group disability business of HM Life Insurance Company, a unit of Highmark Inc., Pittsburgh.
Fort Dearborn Life is not saying how much it has paid for the HM Life operations, which generate about $90 million in premium revenue per year.
Fort Dearborn Life says it made the deal to expand its group insurance business, and HM Life, which previously operated under the name Highmark Life Insurance Company, says it sold the group life and disability business to get capital to invest in its medical stop-loss operations and in benefits product development efforts, company executives say.
Both Fort Dearborn Life and HM Life have strong ties to the world of Blue Cross and Blue Shield health carriers.
Health Care Service is the parent of Blue Cross and Blue Shield of Illinois, and Highmark is the parent of a large Pennsylvania Blue Cross and Blue Shield carrier.
The deal includes an agreement that calls for HM Life national sales offices to sell Fort Dearborn Life products and for Fort Dearborn Life to refer stop-loss clients to HM Life.
The deal excludes the life and disability business of HM Life Insurance Company of New York.