The acquired companies’ products include mortgage accidental death insurance, accidental death and dismemberment coverage and individual term life insurance, all of which Securian offers.
“This acquisition increases the scale of our financial institution business and further demonstrates our commitment to this marketplace,” said Christopher Hilger, EVP, Securian Financial Group. “As providers exit the market, we view this as an opportunity to increase our presence.”
Securian will integrate the Balboa Life businesses into its St. Paul headquarters operations in 2012.
In early June Bank of America struck another deal.
In addition to acquiring Balboa's employees, systems and client relationships, QBE agreed to assume $1.2 billion of insurance liabilities. First announced in early February, the deal also includes a long-term distribution agreement with Bank of America for lender placed and voluntary homeowners, contents, motor and other related consumer lines and associated services.
Forced-placed insurance, a variant of homeowner insurance for foreclosed homes, has become controversial in light of the mortgage crisis. In May, a class action lawsuit was filed against Bank of America and Balboa Insurance Company in U.S. District Court in the Central District of California alleging that Bank of America routinely backdated policies on borrowers with lapsed payment histories, forcing them further underwater on their mortgages.
