American Republic Insurance Company has agreed to acquire Great Western Insurance Company.
American Republic is a Des Moines, Iowa-based unit of American Enterprise Group Inc. American Enterprise Group is, in turn, an arm of American Enterprise Mutual Holding Company.
The corporate family includes Medico Insurance Company as well as American Republic. American Enterprise insurers sell life insurance, hospital indemnity insurance, short-term care insurance, cancer insurance and Medicare supplement insurance.
Great Western is a privately held Ogden, Utah-based life insurer that was founded in 1983. It writes life insurance policies and annuities used to fund arrangements for funerals, cremations and burials.
(Related: New Short-Term Care Group Meets)
Great Western has 121 employees, and licenses to do business in 46 states and the District of Columbia, according to a deal announcement put out by American Enterprise Group.
A report filed with the Texas Department of Insurance shows that the company generated about $200 million in premiums in 2016 and ended 2016 with about $1.2 billion in assets.
John Lindquist, Great-Western’s founder, is still the chief executive officer of the company and chairman of the board.
American Republic and Great Western have not disclosed the price of the deal. The companies hope to complete the deal within the next 30 days.
Tom Swank, the chief executive officer of American Enterprise Group, said in a statement about the deal that American Republic made the acquisition because of Great Western’s reputation, earnings history and distribution channels. His company appears to be looking for more acquisition targets.
“We are always looking for growth opportunities to expand our business,” Swank said.
The Great Western deal will make American Enterprise Group more diversified and better positioned for the future, Swank said.
Lindquist said his company agreed to the deal because it believes American Enterprise Group can finance long-term growth at Great Western’s pre-need operations.
American Enterprise Group has shown its commitment to expanding Great Western’s operations by executing a multi-year lease for Great Western’s headquarters in Utah, the companies said.
—Read 2009 Final Expenses Source List on ThinkAdvisor.