Poolman Approves Midland Acquisition of Clarica U.S.
Posted on 12/31/2002
FOR IMMEDIATE RELEASE
Contact: Jim Poolman
December 31, 2002
Bismarck, ND - Insurance Commissioner Jim Poolman today granted regulatory approval for Midland National Life Insurance Company to acquire control of the U.S. operations of Clarica Life Insurance Company, based in Fargo, N.D. Midland National is based in Sioux Falls, South Dakota, and West Des Moines, Iowa. A hearing was held in Bismarck on December 3, 2002.
"Together, Midland National and Clarica U.S. should form a great team, with strong Midwestern roots and ethics," Poolman said. "As we all know, changes occur quickly within the financial services industry. My job is to make sure that the interests of policyholders are protected in the process." Poolman concluded that the transaction met all of the statutory requirements set out in North Dakota law.
Midland National employs approximately 450 people in Sioux Falls and 250 in West Des Moines, IA. Midland National has approximately $72 billion of life insurance coverage currently in force, assets of approximately $7.4 billion, and 700,000 policyholders. The company has maintained a rating of A+ (Superior) by A.M. Best & Co. for twenty-two (22) consecutive years, and has an AA (Very Strong) rating from Standard & Poors.
Clarica U.S. brings to Midland National approximately $24 billion of life insurance in force, $3.2 billion in assets and 225,000 policyholders. The company has written approximately $765 million in premium in 2002, through November. Clarica employs 212 people in Fargo.
The company will next determine how best to integrate the Fargo, Sioux Falls and West Des Moines operations. "We will continue working with Midland National, to demonstrate the benefits of growing their financial services operations in Fargo. We believe Midland National will be a thriving employer in North Dakota, just as Clarica has been," Poolman said.
Clarica U.S. was formerly a wholly-owned subsidiary of Clarica Life Insurance Company, a Canadian financial services company based in Waterloo, Ontario. In March 2002, the company combined with Sun Life Financial Services of Canada, Inc., to become Canada's largest life insurance company.