Bringing to an end its direct
involvement in insurance, Bank of America is to sell its
wholly-owned subsidiary Balboa Life Insurance Company to mutual
financial services company Securian Financial Group for an
undisclosed sum. This follows the sale by the US’ largest bank by
assets of Balboa’s home insurance unit to Australian insurer QBE
Insurance Group in February this year for around $700m.
Balboa Life’s activities
include individual term life insurance, mortgage insurance and
accidental death and dismemberment coverage. Securian executive
vice-president Christopher Hilger said the acquisition of Balboa
Life provides an opportunity to increase its scale in these
sectors, all of which it already has a presence in.
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Balboa Life will join a large
number of insurance companies in the Securian fold including
Securian Life, Minnesota Life, Cherokee National Life and
CNL/Insurance America. Securian claims to be the fifth largest and
fastest growing provider of group life insurance in the US. At the
end of March 2011 Securian had $740bn of life insurance in force
and managed total assets of $32.7bn.
