AMERICAN ANNUITY GROUP AGREES TO ACQUIRE LAURENTIAN CAPITAL CORPORATION
The acquisition is to be accomplished by means of a merger of a newly formed American Annuity Group subsidiary with Laurentian Capital. Completion of the acquisition is subject to certain conditions, including approval by the stockholders of Laurentian Capital and receipt of all necessary regulatory approvals. It is anticipated that the transaction will be completed in the fourth quarter 1995.
Laurentian Capital had announced in November 1994 its retention of Oppenheimer & Co., Inc. to evaluate various strategies for maximizing shareholder value, including possible business combinations or other transactions. Today's agreement reflects the culmination of that process.
The acquisition will be an important strategic benefit to both companies. American Annuity will provide financial strength and other important resources to Laurentian Capital and will gain immediate access to additional markets and distribution channels. Laurentian Capital's position will be enhanced by becoming part of a financially larger group which will provide the resources to fully realize its growth opportunities.
At March 31, 1995, American Annuity Group and its subsidiaries had approximately $5.3 billion in assets and $4.7 billion of reserves for annuities. American Annuity Group markets individual and group annuities nationwide to the savings and retirement markets through its wholly-owned subsidiaries, Great American Life Insurance Company, Lifestyle Financial Investments, Inc. and Retirement Resources Group, Inc. Great American Life Insurance Company is licensed in 49 states, the District of Columbia and the Virgin Islands.
Laurentian Capital Corporation with assets of $1.0 billion and total life insurance in force in excess of $2.6 billion sells life and health insurance to the pre-need, financial institution and payroll deduction markets through its wholly-owned subsidiaries, Loyal American Life Insurance Company and Prairie States Life Insurance Company.
/CONTACT: S. Craig Lindner, President, of American Annuity Group, Inc., 513-579-2529; or Robert T. Rakich, President, of Laurentian Capital Corporation, 610-889-7400/
CO: American Annuity Group, Inc.; Laurentian Capital Corporation ST: Ohio, Pennsylvania IN: INS SU: TNM
KR-JK -- CL002 -- 9798 05/26/95 09:11 EDT
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|Date:||May 26, 1995|
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