American Mutual Holding
Co., which previously announced plans to demutualize and merge with
AmerUs Life Holdings, will merge with Indianapolis Life Insurance Co. Under the new deal, Indianapolis Life, which is now a
mutual company, will demutualize, transferring ownership from
policyholders to stockholders. The combined entity will have more than
$17 billion in assets, more than $3 billion in premium revenues and
more than $50 billion of life insurance in force. "Together we will be
a leading producer of fixed annuities and life insurance in the United States," says Roger K. Brooks, president and CEO of American Mutual Holding.
Currently,
American Mutual Holding is a mutual holding company, meaning that its
ownership is split between policyholders and outside investors. It is
in the process of demutualizing and merging with AmerUs Life Holdings,
a publicly traded company that it partially owns. American Mutual
Holding has several subsidiaries, including American Investors Life
Insurance Co., AmerUs Life Insurance Co., Delta Life and Annuity Co.,
and Financial Benefit Life Insurance Co. Policyholders of the subsidiaries of American Mutual
Holding Co. will receive 17 million shares of the new publicly traded
company. Indianapolis Life policyholders will receive 11.25 million
shares of the new company. The merger is still subject to approval by
state regulators, policyholders, and boards of directors of both
companies. If approved, the merger is expected to be complete by the
end of 2000.
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