Aetna Life Insurance and Annuity assumes Confederation Life Insurance and Annuity businesses.HARTFORD, Conn. and ATLANTA--(BUSINESS WIRE)--Oct. 2, 1995--Aetna Life Insurance and Annuity Co. (ALIAC) and Georgia Insurance Commissioner John W. Oxendine, in his official capacity as Rehabilitator of Confederation Life Insurance and Annuity Co. (CLIAC), today announced the closing of the Assumption Reinsurance Agreement under which ALIAC assumes the individual life, variable annuity Variable Annuity An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio. and guaranteed investment contract Guaranteed investment contract (GIC) A pure investment product in which a life company agrees, for a single premium, to pay at a maturity date the principal amount of a predetermined annual crediting (interest) rate over the life of the investment. businesses of CLIAC. The individual life block consists of almost 5,000 policies with a face amount of nearly $2 billion; the variable annuity block of business consists of approximately 7,000 contracts with $290 million of assets; and the guaranteed investment contracts (GICs) have accrued liabilities of $68 million. CLIAC is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Confederation Life Insurance Co. (U.S.) in Rehabilitation (CLIC CLIC Centre Local d'Information et de Coordination (French) CLiC Climate and Cryosphere (World Climate Research Programme project, Norway) CLIC Compact Linear Collider CLIC Connecticut Licensing Information Center (U.S.)). The agreement with ALIAC was approved in July by the Superior Court of Fulton county, Georgia Fulton County is a county located in the U.S. state of Georgia. Its county seat is Atlanta6, the principal city of the Atlanta metropolitan area. As of the 2000 census, the population was 816,006. The 2006 Census Estimate placed the population at 960,009 [1]. as part of the Rehabilitation Plan for CLIAC, and in August by the Circuit Court for the County of Ingham, Michigan overseeing the rehabilitation of CLIC (U.S.). ALIAC's assumption of the CLIAC block was also approved by insurance regulators in all 50 states as well as the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . "This transaction fulfills my pledge to protect policy values and benefits, and to ensure the fair treatment of CLIAC policyholders," said Commissioner Oxendine. "The acquisition fits well with ALIAC's goal of purchasing high quality blocks of business," said Daniel P. Kearney, ALIAC President. "We look forward to welcoming CLIAC customers and providing them with the same level of outstanding service and performance all ALIAC customers receive." An overwhelming majority -- more than 96% -- of policyholders elected to participate in the transaction. ALIAC, with assets of $24 billion as of June 30, 1995 ($22.5 billion of customer and other liabilities, $1.5 billion of shareholders equity), which include more than $8.8 billion in separate account assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. , is a wholly owned subsidiary of Aetna Life and Casualty Company. Aetna Life and Casualty Company is one of the nation's largest stockholder-owned insurance and financial services companies, with consolidated assets of $100 billion. CONTACT: Aetna Life Insurance and Annuity Co., Hartford Andrew Schwartz, 203/275-3767 or Georgia Department of Insurance Gina Gassert, 404/651-7902 |
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