RIDGELAND — Citizens Inc.’s wholly owned subsidiary, Security Plan Life Insurance Company, has reached a definitive agreement to acquire Magnolia Guaranty Life Insurance Company of Ridgeland for $5.23 million.
Magnolia Guaranty has 409,553 shares of capital stock outstanding. Since 1992, it has specialized in the sale of final expense and pre-need life insurance policies in Mississippi through its funeral home distribution channels.
For the year ended Dec. 31, 2012 Magnolia Guaranty had assets of $8 million and annual premiums of $2.14 million.
The transaction is subject to approval by Magnolia Guaranty’s shareholders, approvals by insurance regulators and other customary closing conditions. Closing is expected during the fourth quarter of 2013, following completion of requisite due diligence and regulatory approvals.
Rick Riley, president of Austin, Texas-based Citizens, said, “As we continue to grow the final expense and pre-need business, Magnolia Guaranty provides a natural synergy with our Security Plan Life Insurance Company subsidiary. These two companies complement one another very well, and together, serve to strengthen each other in the Mississippi marketplace.”