Security National Financial Corp. announces acquisition of Florida-based insurance company

Business Wire, Jan 6, 1995

SALT LAKE CITY--(BUSINESS WIRE)--Jan. 6, 1995--Security National Financial Corp. (NASDAQ:SNFCA) announced Friday that it has closed its previously announced acquisition of Capital Investors Life Insurance Company of Tampa, Fla.

Security National Financial Corp. purchased all of the outstanding common stock of Capital Investors Life Insurance Company, effective Dec. 16, 1994. Capital Investors is currently licensed to transact business in 23 states. Capital Investors had total revenues for the year ended Dec. 31, 1993, of $4,637,000 and total assets of $31 million. Capital Investors had a net loss of $19,000 for fiscal 1993.

As consideration for the purchase of the shares of Capital Investors, Security National paid $5,231,000 in cash, a Profit Sharing Agreement for 33-1/3 percent of the profits from new post-closing sales of existing Capital Investors Life Insurance Company plans of insurance and 40,000 shares of Security National Financial Corp. Class A Common Stock.

The company is required to register the 40,000 shares of Class A Common Stock by preparing a filing a Form S-3 Registration Statement with the United States Securities and Exchange Commission.

"Capital Investors is an excellent company and fits well into our expansion plans," noted Scott M. Quist, first vice president of Security National Financial Corp. "Capital Investors provides us with economies of scale, giving us a more efficient operation and broadens our marketing area to many states such as Florida, Virginia and Illinois, where we currently do not do business."

The acquisition of Capital Investors will increase Security National's asset base to more than $100 million, annual revenues to more than $20 million, and add nearly 50,000 new policyholders.

Headquartered in Salt Lake City, Security National Financial Corp. owns life insurance, cemetery, mortuary and mortgage subsidiaries.

CONTACT: Security National Financial Corp.

Scott M. Quist or Kevin F. Childress, 801/264-1060