American Mutual Holding Company and Indianapolis Life Insurance Company Complete Definitive Agreement.Business Editors DES MOINES, Iowa--(BUSINESS WIRE)--Feb. 21, 2000 American Mutual Holding Co. (AMHC AMHC Association of Mental Health Clergy AMHC Aviation Structural Mechanic Hydraulics Chief ), a mutual insurance holding company, AmerUs Life Holdings, Inc. (NYSE NYSE See: New York Stock Exchange :AMH AMH Abington Memorial Hospital (Abington, PA) AMH Anti-Müllerian Hormone AMH Australian Medicines Handbook AMH Automated Material Handling AMH Aviation Structural Mechanic (Hydraulics) US Navy Rating ), a publicly-traded subsidiary of AMHC, and Indianapolis Life Insurance Co., a mutual life insurance company, announced today that they have signed a definitive agreement for the companies to combine their operations in connection with their respective demutualizations. American Mutual Holding Company and Indianapolis Life (ILICo) have each commenced their demutualization Demutualization The process of changing corporate structure from a mutual fund company to some other form, such as a limited liability or corporation. Notes: This means mutual/life insurance companies convert from policyholder companies to stock companies. processes. AMHC members will receive 17 million shares of the resulting publicly-traded company's stock, and over $300 million in other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. . ILICo's members will receive 11.25 million shares of the stock. Following the demutualizations, ILICo will become a subsidiary of AMHC and will continue operations as a stock life insurance company. Current public shareholders of AmerUs Life Holdings will exchange their shares on a one-for-one basis for stock in the new company. The contemplated transactions are subject to normal closing conditions, including appropriate policyholder/member, shareholder and regulatory approvals. The combined companies will have over $17 billion in assets, more than $3 billion of premium revenues, over $50 billion of life insurance in force and $1.1 billion in shareholder equity. The group will offer a broad range of life insurance and annuity products in all fifty states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . "This combination clearly strengthens our position in our core life insurance and annuity lines of business, and provides significant operating efficiencies," said Roger K. Brooks, chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of AMHC. The combined companies will be headquartered in Des Moines. Indianapolis Life and its subsidiaries will retain their names and continue to be based in Indianapolis and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . When the transaction is complete, Brooks will be chairman, president and CEO of the new company and Larry R. Prible will be vice chairman of the new company and will remain president and CEO of Indianapolis Life. "We see tremendous opportunity resulting from the scale and synergies created by this transaction," said Prible. "We're eager to move forward with our plans." AMHC's operating subsidiaries include AmerUs Life Insurance Co., American Investors Life Insurance Co., Financial Benefit Life Insurance Co. and Delta Life and Annuity Co. ILICo's operating subsidiaries include IL Annuity and Life Insurance Co., Bankers Life Insurance Company of New York, and Western Security Life Insurance Co. AMHC is the first mutual insurance holding company in the U. S. AMHC is owned by its members who are also policyowners of AmerUs Life Insurance Company, a subsidiary of AMHC that was formed in 1896. As of December 31, 1999, AmerUs Life Holdings' total assets were $10.7 billion and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. totaled $733.0 million. Indianapolis Life is a 95-year-old mutual life insurance and annuity company based in Indianapolis. It has assets of $5.7 billion and insurance in force of $22.7 billion. The company and its subsidiaries do business in all 50 states and the District of Columbia. |
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