Fort Dearborn Life Insurance Company Acquiring New York Domiciled Company

Fort Dearborn Life Insurance Company is a Mutual Legal Reserve Company. They are a subsidiary of Health Care Service Corporation. They have signed a letter of intent to acquire a New York-domiciled life and accident and health insurance company. The acquisition will be named at a later date.

Fort Dearborn Life is one among the many leading providers of employee benefits in the country. Its experience spans 35 years and more. Presently it has $151.1 billion of life insurance in-force and $1.7 billion in assets. It is rated A+ by A.M.Best Company, which is a standard company for ratings of insurance companies. Its recent rating by Standard and Poor is A for its financial strength. Fort Dearborn Life markets group life, group dental, individual annuity and short/long-term disability programs.

Fort Dearborn Life, the 14th largest carrier in the United States based on group life volume states that the seller of the company that is to be acquired will be disclosed at the time of the closing of the transaction as it is subject to regulatory approvals. The stock purchase acquisition is expected to close in 2007. This commitment from Fort Dearborn Life that enters the New York group benefits marketplace is a welcome happening for consumers.

Larry Newsom, president and CEO of Fort Dearborn Life says that they look forward to this acquisition that opens distribution opportunities for us in that state and that they are dedicated to entering and growing their business in New York.

Industry sources say that in August, Fort Dearborn Life acquired the life and disability blocks of business of HM Life Insurance Company. Sources say it will enter into a similar transaction in 2007 for the life and disability blocks of business written by HM Life Insurance Company of New York, subject to regulatory approvals.