Conseco completes American Life Holdings acquisition.CARMEL, Ind IND Investigational new drug Therapeutics A status assigned by the FDA to a drug before allowing its use in humans, exempting it from premarketing approval requirements so that experimental clinical trials may be conducted. See Phase 1.2, 3 studies, Sponsorship. .--(BUSINESS WIRE)--Oct. 1, 1996--Conseco, Inc. (NYSE NYSE See: New York Stock Exchange :CNC (Computerized Numerical Control) See numerical control. CNC - Collaborative Networked Communication ) said today that it has completed its previously announced acquisition of American Life Holdings, Inc., a leading provider of retirement savings annuities, for $165 million in cash. Conseco paid the other limited partners in Conseco Capital Partners II, L.P. $23.00 for each of their shares of American Life Holdings. Conseco Chairman Stephen C. Hilbert said, "We are very pleased to welcome American Life Holdings' principal subsidiary -- American Life and Casualty Insurance Co. -- to the family of wholly owned Conseco life companies. We look forward to working closely with their outstanding network of 25,000 independent agents to grow their profitable business." As previously announced, Conseco plans to move American Life Holdings' operations from Des Moines, Iowa “Des Moines” redirects here. For other uses, see Des Moines (disambiguation). Des Moines (pronounced /dɪˈmɔɪn/ in English, , to Carmel, Ind. in mid-November, resulting in approximately $10 million of annual cost savings. "As we've stated," Hilbert said, "Conseco's strategic objective is to be a leader in each of our major product lines: (1) supplemental health insurance; (2) retirement savings annuities; and (3) universal life insurance. The annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. production from American Life and Casualty, combined with that of Conseco companies Beneficial Standard Life Insurance Co. and Great American Reserve Insurance Co., place Conseco among the top five producers of individual annuities in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , with more than $2 billion of annual premiums." Conseco said it expects to complete by year-end all four of its pending transactions, including: (1) the acquisitions of American Travellers Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ATVC ATVC Ascent Thrust Vector Control ATVC Automatic Thrust Vector Control ATVC Automatic Throttle Valve Control ), Capitol Capitol, seat of the U.S. Congress Capitol, seat of the U.S. government at Washington, D.C. It is the city's dominating monument, built on an elevated site that was chosen by George Washington in consultation with Major Pierre L'Enfant. American Financial Corp. (NYSE:CAF CAF - constant applicative form ) and Bankers Life Holding Corp. (NYSE:BLH BLH Baldwin-Lima-Hamilton (locomotive manufacturer) BLH Bellingham, Washington (border patrol station) BLH Bidirectional Long Haul ) announced Aug. 26; and (2) the acquisition of Transport Holdings Inc. (NASDAQ:TLIC TLIC Transamerica Life Insurance Company ) announced Sept. 26. Following their completion, Conseco said it will also be the leader or among the leaders in long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. insurance, agent-produced Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. supplement insurance, cancer and other specified disease insurance, and new universal life production. Conseco, a financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. organization headquartered in Carmel, Ind., owns and operates life insurance companies and provides investment management, administrative and other fee-based services. Company Profiles Follow Company Profiles - a supplement to Conseco's news release of Oct. 1, 1996 Conseco, Inc. (NYSE:CNC) Insurance operations Senior market operations include the activities of Bankers Life Holding Corp. (NYSE:BLH), in which Conseco currently holds a 90.5 percent equity interest (and will hold a 100 percent equity position after completion of the CNC/BLH merger announced Aug. 26, 1996). BLH's principal operating company operating company A business that engages in transactions with outsiders. , Bankers Life and Casualty Bankers Life and Casualty is primarily a health insurance company in the United States. It was founded in 1879 and was previously known as White Cross. It was formerly owned by millionaire investor John D. , provides Medicare supplement, long-term care, life insurance, annuities and other health products to America's seniors. Bankers distributes its products through approximately 200 branch offices and 3,200 career agents. Upon completion of two other transactions announced Aug. 26, this segment will also include the operations of (1) American Travellers Corp., which sells long-term care insurance and other supplemental health and life insurance products through 22,000 independent agents; and (2) Capitol American Financial Corp., which sells cancer insurance and other supplemental health insurance products through 3,700 independent agents. Annuity operations include the activities of Great American Reserve Insurance and Beneficial Standard Life. These companies market their products through two distribution channels: (1) approximately 3,000 educator market specialists, who sell tax-qualified annuities and certain employee benefit-related insurance products primarily to school teachers and administrators; and (2) approximately 9,000 professional independent producers, who sell various annuity and life insurance products aimed principally at the retirement market. This segment also includes the operations of American Life Holdings, whose American Life and Casualty subsidiary sells annuities through approximately 25,000 professional independent producers, beginning with its acquisition by Conseco on Sept. 30, 1996. Life insurance operations include the activities of Philadelphia Life, Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. General Life, Lamar Life and Wabash Life, beginning
with their acquisition in the third quarter of 1996. These companies
distribute universal life insurance products using two primary marketing
systems -- the client company system and the regional director system --
comprising a total of approximately 25,000 professional independent
producers. Segment activities also include Conseco's other wholly
owned life insurance subsidiaries -- Bankers National Life, National
Fidelity Life and Lincoln American Life -- which have profitable
in-force blocks of annuity and life products, but do not currently
market their products to new customers.Conseco Private Capital Group makes direct strategic investments in growing companies, providing these firms with the capital or financing they need to continue their growth, make acquisitions or realize the potential of their businesses. Fee-based operations Conseco's subsidiaries provide various services to affiliated and unaffiliated clients. Conseco Capital Management manages $28 billion of invested assets. Bankmark provides marketing services to financial institutions related to the distribution of insurance and investment products. Conseco Risk Management distributes property/casualty insurance products as an independent agency. Conseco Mortgage Capital originates and services mortgages. American Life Holdings, Inc. -0-
History: Acquired September 1994, by Conseco Capital
Partners II, L.P., a limited partnership
formed in 1994 for the purpose of acquiring
life insurance companies. Investors in the
partnership included Conseco, Inc. and
approximately 35 other institutions and
individuals. Conseco previously had a
38 percent stake in American Life Holdings.
Conseco announced its decision to terminate
the partnership on March 12, 1996, and on
Aug. 26, 1996, announced its intention to
acquire the remainder of the ownership of
American Life Holdings.
Headquarters: Des Moines, Iowa (to be moved to Conseco's
Carmel, Ind. headquarters by November 1996)
Chief executive: Stephen C. Hilbert (Chairman)
Principal subsidiary: American Life and Casualty Insurance Co.
Assets: $6.0 billion (6/96)
Total premiums: $826 million (full-year 1995), $359 million
(six months 1996)
Policies in force: 318,000 individual policies and 132,000
group certificates (12/95)
Target market: "Retirement savers"
Principal products: Deferred annuities (91% of 1995 premiums),
life insurance (6%), immediate
annuities (3%)
Products distributed by: 25,000 independent agents in 48 states
CONTACT: Conseco, Inc., Carmel Jim Rosensteele, 317/817-2893 E-mail: ir@conseco.com |
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