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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowOneAmerica Financial Partners Inc. has called off its deal to swallow up a Virginia-based life insurer-less than three months after striking the agreement.
American United Mutual Insurance Holding Co., one of OneAmerica’s companies, said that it terminated its letter of intent to acquire Shenandoah Life Insurance Co. yesterday, according to a statement released today by OneAmerica. The statement gave no reason for the termination.
Officers of Indianapolis-based OneAmerica signed the letter of intent back in November, saying that the two companies would merge by mid-2009. OneAmerica disclosed no details about the financial terms of the deal.
Shenandoah, with $1.9 billion in assets, is much smaller than OneAmerica, with $19.9 billion.
Shenandoah would have become a subsidiary of OneAmerica, whose other subsidiaries include American United Life Insurance Co. and the State Life Insurance Co. The deal required approval by policyholders of both companies, as well as federal and state regulators.
OneAmerica has been looking for acquisitions in recent years. It found itself in a good position to buy because, unlike many life insurers, it avoided major investment losses in the recent turmoil on Wall Street.
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