PEMCO Life Insurance merger
PEMCO Life Insurance Company and its parent company, Sagicor Life Insurance Company, filed an application for a proposed merger of PEMCO Life Insurance with and into Sagicor Life Insurance. Sagicor Life Insurance would be the surviving entity from this merger.
PEMCO Life Insurance is a Washington-domiciled stock insurance company operating as a life, accident and health insurer incorporated in 1965. Sagicor Life Insurance is a Texas-domiciled stock insurance company operating as a life, accident and health insurer incorporated in 1948. Sagicor Life Insurance recently acquired PEMCO Life Insurance that was approved by the insurance commissioner in September 2012.
The boards of directors of both companies have approved the “Agreement and Plan of Merger.” The commissioner must approve the proposed merger before that agreement and plan of merger can be completed.
History of the process
In October 2012, we received the application for the merger of PEMCO Life Insurance Company. We completed our review of that application and sent the filing to our Hearings Unit. The judge has scheduled a hearing for December 12, 2012 at 10:00 am in the 5000 Building in Tumwater. Notice of Hearing.
What we look at
In all proposed mergers, the companies must file an application that details:
- A plan of merger including corporate documents approving the proposed merger;
- Financial information for both companies;
- The effect of the merger on the current Washington policyholders;
- Any changes in their business plan; and
- Any market competition impacts.
Under state law (www.apps.leg.wa.gov), the commissioner must approve the merger unless:
- The plan of merger is not fair, equitable, or consistent with law; or
- It is in some other way “hazardous or prejudicial to the insurance-buying public."