SNFC buys First Guaranty

Security National Financial Corp. has entered into a stock purchase agreement to acquire First Guaranty Insurance Co., a Louisiana-based life insurer with a strong base in the southeastern United States. Scott Quist, president of Murray-based Security National, said, "We are honored that the Madden family, who founded First Guaranty 57 years ago, would choose us to carry on its legacy." Quist said the stock purchase agreement is specifically contingent upon receiving approval for the transaction from the Louisiana Department of Insurance.

First Guaranty had $55.5 million in assets and $5.5 in collected premiums in 2015. "We believe we can achieve immediate profitability by combining our existing operations," said Quist. "We view this acquisition as strategic in regards to our ability to maintain and grow our life insurance business in this region. First Guaranty's products and marketing are similar to our own and we expect to achieve immediate economies of scale."

Security National said in a release that it grows its insurance operations both organically and through acquisitions. It noted that this was its fourth business acquisition in the past five years.