Allianz Life to Acquire Life USA Holding, Inc.

Strategic Insights -

Allianz Life Insurance Company of North America and Life USA Holding, Inc. have agreed to a cash acquisition deal, with Life USA shareholders set to receive $20.75 per share. The transaction will see Robert W. MacDonald, Chairman and CEO of Life USA, become CEO of Allianz Life, while Lowell C. Anderson, Allianz Life's current Chairman, President and CEO, will continue as Chairman of Allianz Life. The combined company will maintain its presence in the US and Canadian markets, offering a range of life, health, and annuity products.

Key Takeaways:

  • Allianz Life will acquire Life USA Holding, Inc. for $20.75 per share, with the agreement approved by the Board of Directors of Life USA subject to an investment banker "fairness opinion".
  • Robert W. MacDonald, Chairman and CEO of Life USA, will become CEO of Allianz Life, while Lowell C. Anderson will continue as Chairman of Allianz Life.
  • The management of both companies will be unified under the direction of Robert W. MacDonald.
  • The transaction will bring complementary strengths, allowing Allianz Life and Life USA to offer a full spectrum of traditional and variable life, fixed and variable annuities, reinsurance, securities, long-term care, and health products.
  • Allianz Life is a leading provider of life, health, and annuity products, while Life USA Holding, Inc. is a national financial services holding and marketing company based in Minneapolis.
  • The acquisition is subject to regulatory approvals and is expected to close in September 1999.

Statistics:

  • $20.75: the price per share that Life USA shareholders will receive in cash as part of the acquisition deal.
  • 160: the number of marketing organizations nationwide that LifeUSA Insurance Company, the primary subsidiary of LifeUSA Holding, Inc., is represented by.
  • May 17, 1999: the date on which the acquisition agreement was announced.
  • September 1999: the expected closing date of the transaction, subject to regulatory approvals.

Sources:

  • Business Wire: May 17, 1999 - Allianz Life Insurance Company of North America and Life USA Holding, Inc. Announce Acquisition Agreement