Industrial Alliance Insurance and Financial Services Inc. announced it has completed the acquisition of the in-force life policies of Golden State Mutual (GSM).
The transaction was carried out through the Industrial Alliance U.S. subsidiary, IA American Life Insurance Company, Scottsdale, Arizona.
The deal was arranged by the California Department of Insurance to protect policyholders of GSM, Los Angeles, after the company reported a series of operating losses.
The GSM block of business, which Industrial Alliance, Quebec City, Quebec, acquired for a ceding commission of about $11 million, involves 120,000 life policies with a face amount of close to $500 million. For 2009, GSM collected premiums totaling $9 million, and its invested assets were valued at $70 million, according to the announcement.