ARM Financial Group Completes Acquisition of SBM Company Assets

Strategic Insights -

ARM Financial Group, Inc. announced the completion of the acquisition of substantially all the assets of SBM Company, including its principal subsidiary, State Bond and Mortgage Life Insurance Company of Minneapolis, Minnesota. The acquisition has increased ARM's policyholder reserves and funds under management to $4.5 billion, with the purchase price totaling $38.6 million. The acquisition also included a broker/dealer subsidiary, SBM Financial Services, Inc., and SBM Certificate Company, bringing an additional $1.0 billion in policyholder deposits and funds under management.

Key Takeaways:

  • ARM Financial Group acquired substantially all the assets of SBM Company, including its principal subsidiary, State Bond and Mortgage Life Insurance Company of Minneapolis, Minnesota.
  • The acquisition increased ARM's policyholder reserves and funds under management to $4.5 billion, with the purchase price totaling $38.6 million.
  • ARM infused approximately $20 million in cash into SBM Life, a subsidiary of SBM Company, as part of the acquisition.
  • Morgan Stanley Capital Partners, a private equity fund managed by Morgan Stanley Group Inc., provided $63.5 million in new common equity to ARM, increasing their common equity stake in ARM to 91%.
  • SBM Life sells tax-deferred fixed annuity products through career and independent agents/representatives located in the upper Midwest and on the West Coast.
  • The acquisition also included a broker/dealer subsidiary, SBM Financial Services, Inc., and SBM Certificate Company, bringing an additional $1.0 billion in policyholder deposits and funds under management.
  • ARM Financial Group operates in multiple locations, including a corporate headquarters in Louisville, operations centers in Columbus, Ohio and New York City, and sales and administrative offices in Minneapolis and New Ulm, Minnesota and Fresno, California.

Statistics:

  • ARM's policyholder reserves and funds under management increased to $4.5 billion following the acquisition.
  • The purchase price of the acquisition totaled $38.6 million, less certain liabilities assumed by ARM.
  • ARM infused approximately $20 million in cash into SBM Life as part of the acquisition.
  • Morgan Stanley Capital Partners provided $63.5 million in new common equity to ARM, increasing their common equity stake in ARM to 91%.
  • SBM Life has $1.0 billion in policyholder deposits and funds under ARM's management.

Sources:

  • PRNewswire, June 14, 1995
  • AMEX: ARMpr