Security MutualLincoln Insurance Deal Advances

The combined company, which would be known as Assurity Security Group Inc., will have about $2 billion in assets.

Nebraska insurance regulators approved the deal in August, and more than 95% of the company members who voted at the 2 special member meetings held to consider the deal cast their votes in favor of a merger, Security Mutual and Lincoln Insurance report.

Security Mutual and Lincoln Insurance now plan to consummate the merger Jan. 1, 2005.

The merger agreement calls for Assurity Security to let the main insurance company subsidiaries of Security Mutual and Lincoln Mutual keep their current offices and continue to operate as separate companies for at least 3 years. Half of the Assurity Security board members will come from Security Mutual and half from Lincoln Insurance.

Security Mutual President Tom Henning will be the president of Assurity Security, and Potter will be Assurity Security’s chairman. Potter plans to give up his day-to-day management role after Security Mutual and Lincoln Insurance officially merge.