First Capital agreed to buy Fidelity Bankers Life.

The Los Angeles-based financial services company said it will enter the insurance business by acquiring the Richmond, Va.-based insurance company for $75 million in cash. The deal is subject to a definitive agreement and receiving regulatory approvals. First Capital Holding’s chief subsidiary, Pilgrim Group, operates about $250 million in mutual funds and manages about $900 million in assets. Fidelity Life, which is owned by Monarch Capital, is licensed to operate in 49 states and has $5.7 billion of insurance in force.