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.