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Illinois Blue Affiliate To Enter Empire State

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Fort Dearborn Life Insurance Company says it has agreed to buy a New York-domiciled life and health insurance company to be named later.

Fort Dearborn Life, Chicago, will use the company to enter the New York group benefits market, the company says.

Fort Dearborn Life is a unit of Health Care Service Corp., Chicago, the parent of Blue Cross and Blue Shield of Illinois.

Fort Dearborn Life already has signed a letter of intent to acquire the New York company through a stock purchase acquisition in 2007, Fort Dearborn Life says.

“The seller of the company to be acquired will be disclosed at the time of the closing of the transaction, which is subject to regulatory approvals,” Fort Dearborn Life says.

Fort Dearborn Life already has acquired blocks of life and disability insurance from a unit of Highmark Inc., Pittsburgh, and now it is negotiating to acquire blocks of life and disability business from another Highmark unit that does business in New York, Highmark says.

The Highmark block already acquired generates about $90 million in premium revenue per year, according to figures that Fort Dearborn Life provided in August.