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LifeShield announces agreement to acquire IAC, an Oklahoma City-based insurance company
OKLAHOMA CITY, June 7, 2019 /PRNewswire/ -- LifeShield National Insurance Co. ("LifeShield") announced that it has entered an agreement to acquire IAC Group, the parent company of Individual Assurance Company ("IAC"), a leading life, accident, and health insurer with a strong presence in the Medicare supplement market. The agreement has been unanimously approved by the boards of LifeShield and IAC Group. Following the transaction, IAC will continue to operate under the IAC brand as a subsidiary of LifeShield.
Upon announcing the transaction, David Brooks, President of LifeShield, said, "This is a unique opportunity for LifeShield to enhance its operational capabilities, and will enable both companies to become leading providers of products in the senior market. The transaction offers significant long-term value for LifeShield by adding new products and lower operating expenses. Combining the operations will enable both companies to execute in the individual, worksite, and association market space, including life, Medicare supplement, accident and health specialty lines, and reinsurance."
Mr. Brooks continued, "I am excited about adding IAC's experienced and proven team, as it will help LifeShield to further capitalize on opportunities created through recent product and distribution initiatives, while giving LifeShield access to the innovative client solutions IAC has developed. We were attracted to IAC in large part because both companies share a culture focused on people, risk management, and innovation. This combination will position both LifeShield and IAC for the evolving future of the insurance industry."
Jim Harlin, chairman and CEO of IAC, added, "This is an attractive combination of Oklahoma domestic life and health insurers with highly complementary businesses and operations, and I'm thrilled with the platform for continued success that this transaction creates for our organizations."
Upon completion of the transaction, IAC Group will operate as a subsidiary of LifeShield and will be led by David Brooks, President of LifeShield. Following the closing, Jim Harlin, IAC's current chairman and CEO, will serve as a consultant to IAC, advising on integration-related matters and other strategic opportunities. All employees of IAC will continue with the company following the acquisition.
Completion of the transaction is subject to customary closing conditions, including the receipt of required regulatory approvals.
LifeShield was advised by John Tiller as financial and actuarial advisor and Hartzog Conger Cason as legal counsel. IAC was advised by DeBee Clark as legal counsel.
LifeShield National Insurance Company is a life, accident and health insurance company and has been domiciled in Oklahoma since 1982. The company is licensed in 43 states and offers a range of products to individuals, small and mid-sized businesses, school districts, and associations. Product offerings include GAP and worksite plans, critical illness, accident, AD&D, short-term medical, term life, joint and individual whole life policies, limited medical, and hospital indemnity plans. LifeShield is rated B++ by AM Best Company. B++ is the fifth highest rating possible out of a total of 16.
IAC began doing business in 1956 as Institutional Agencies Corporation, serving financial institution clients throughout the Midwest. In 1973, Individual Assurance Company, Life, Health & Accident, was established as a Missouri-domiciled life and health insurance company. Today, IAC is headquartered in Edmond, Oklahoma and operates in 43 states and throughout a number of Pacific island nations and territories. IAC is rated B+ by AM Best Company. B+ is the sixth highest rating possible out of a total of 16.
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SOURCE LifeShield National Insurance Company