Insurance firm Citizens Inc has completed the purchase of Mississippi insurance company Magnolia Guaranty Life Insurance Co. The acquisition deal was valued at $5.23 million in cash, according to Austin Business Journal.
The transaction was done through Security Plan Life, a subsidiary of Citizens. Security Plan bought 409,553 of Magnolia's capital stock outstanding in the said deal, Austin Business Journal reported, the report detailed.
The Wall Street Transcript (TWST) cited Citizens chairman and chief executive officer (CEO) Harold Riley saying: "This Security Plan Life acquisition complements our home service segment. Magnolia customarily sells policies through independent funeral homes while Security Plan customarily sells through a debit route-based system. Together, we anticipate Mississippi clients will experience enhanced support from the affiliated companies."
According to Security Plan officials, the deal will help the firm tap into in the insurance market of Mississippi, the report said.
Citizens is a New York-Listed company that sells life cash value insurance policies and other insurance products in the US, TWST added.
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