Utah-based Security National Financial Corp. announced today that it has entered into a stock purchase agreement to buy Louisiana-based First Guaranty Insurance Co.
Financial details of the transaction were not immediately available. The transaction must be approved by the Louisiana Department of Insurance, according to a news release announcing the deal.
“We view this acquisition as strategic in regards to our ability to maintain and grow our life insurance business in this region,” Security National President Scott Quist says in a statement. “First Guaranty’s products and marketing are similar to our own, and we expect to achieve immediate economies of scale.”
The purchase of First Guaranty would be Security National’s fourth business acquisition within the last five years.
“We are honored that the Madden Family, who founded First Guaranty 57 years ago, would choose us to carry on its legacy,” Quist says.
First Guaranty had $55.5 million in assets and $5.5 million in collected premiums in 2015.
As of the third quarter of 2015, Security National report reported $749 million in assets, $109 million in stockholder’s equity and $215 million in gross revenue.
Security National operates three main business segments: life insurance, mortgage banking and cemetery mortuary operations.
First Guaranty Insurance Company has a strong insurance base in the Southeastern United States. Read the full release.
