Clarica’s U.S. division has agreed to sell its Milwaukee Life Insurance Company operating subsidiary to National Guardian Life Insurance Company of Madison, Wis., for US$7.2 million.

Milwaukee Life is wholly owned by Clarica Life Insurance Co.-U.S., the operating subsidiary of Clarica U.S. Inc., based in Brookfield, Wisconsin, which in turn is a wholly owned subsidiary of Clarica Life Insurance Co.

Charles Grover, president and CEO of Clarica U.S. Inc., said the decision to sell Milwaukee Life reflects “Clarica’s desire to redeploy capital towards strategic initiatives that offer the potential for higher and longer-term sustainable value.” He noted that “Milwaukee Life’s portfolio is marketed through a separate distribution system of property/casualty agents. We intend to focus our efforts on our core distribution system of independent marketing companies and agents who specialize in wealth accumulation and wealth preservation products.”

John Larson, president and CEO of National Guardian Life Insurance, said “this transaction provides us with an excellent opportunity to expand our already strong presence in the Midwest, and we look forward to working with our new policyholders and agents.”

The transaction has been structured as a stock purchase and is expected to close at the end of May this year, subject to regulatory approvals. The financial impact of the transaction on Clarica is expected to be minimal. National Guardian is expected to fold the Milwaukee Life business into its Madison operations by the end of the third quarter of 2001.