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MAAF-LED INVESTOR GROUP INCREASES BID FOR ELIC TO $3.55 BILLION

MAAF-LED INVESTOR GROUP INCREASES BID FOR ELIC TO $3.55 BILLION
 Initial Uncovered Policyhodler Recovery Increased
 to 90.1 Percent; Interim Chief Executive Officer Named
 This material is prepared, edited, issued or circulated by Powell Tate, a Cassidy Company, which is registered with the Department of Justice, Washington, D.C., under the Foreign Agents Registration Act as an agent of New California Life Holdings, Inc. and Altus Finance. This material is filed with the Department of Justice where the required registration statement is available for public inspection.
 Registration does not indicate approval of the contents of the material by the United States Government.
 LOS ANGELES, Nov. 11 /PRNewswire/ -- The Mutuelle Assurance Artisanale de France (MAAF)-led investor group announced today, through its newly named insurance company, AURORA National Life Assurance Company, that it has substantially increased its bid for Executive Life Insurance Company (ELIC) to $3.55 billion, primarily through a $250 million increase in the price being paid for ELIC's junk bonds. The MAAF-led group's new bid provides a guaranteed 100 percent recovery for 97 percent of ELIC's policyholders and increases recovery for the remaining 3 percent to 90.1 percent from 87 percent. The MAAF-led group has also substantially improved policyholder benefits by increasing liquidity and various profit participations. The MAAF-led group said it believes that these policy benefits add substantial value estimated at $275 million to policyholders.
 The MAAF-led group also announced that subject to its bid being accepted, one of its directors, Kenneth O'Brien, retired executive vice president of the New York Life Insurance Company, has agreed effective Jan. 1, 1992, to serve as interim chief executive officer of AURORA. O'Brien will lead a search by AURORA's board for a permanent CEO. A 27-year veteran at New York Life and former member of its Executive Management Committee, he is credited with revitalizing that company's pension department, and turning around New York Life's Canadian subsidiary.
 The MAAF-led group said that Robert Chick, president of California-based Lawyers Mutual Insurance Company and a member of the California State Guaranty Association for property and casualty insurers, and Earl Cheit, the Edgar F. Kaiser Professor of Business and Public Policy and Dean Emeritus of the U.C. Berkeley Graduate School of Business Administration, have agreed to join AURORA's Board, should the MAAF-led group's bid be accepted. The MAAF-led group also said it intends to add a policyholder representative to the Board of AURORA. The MAAF-led group said that under its ownership, AURORA would remain headquartered in Los Angeles.
 John F. Hartigan, director of Transition Planning for the MAAF-led investor group and a senior partner in the Los Angeles office of Morgan, Lewis & Bockius, said, "Throughout this entire process, we have paid attention to the concerns of policyholders. Our final bid provides them with a high recovery percentage in an insurance company which will be one of the safest in the country. The policy benefits we have provided will allow policyholders to enjoy many of the full benefits of their policies from day one."
 Hartigan added, "The bonds-in structure that will be proposed by our competitors offers none of these advantages. It is little more than an involuntary junk bond vulture fund paying treasury bill returns. All the worries, uncertainties, and lack of access to policy funds which plagued ELIC's policyholders in the past will simply continue. We believe that guaranteed returns, an investment grade bond portfolio, and a real insurance company is the answer for ELIC's policyholders, not more sleepless nights."
 -0- 11/11/91
 /CONTACT: Mike Sitrick or Jeff Lloyd of Sitrick and Company, 310-788-2850; or Powell Tate of Jody Powell/Dale Leibach, 202-347-6633, all for MAAF/ CO: Mutuelle Assurance Artisanale de France, Executive Life
 Insurance Company ST: California IN: INS FIN SU: SE -- LA029 -- 3241 11/11/91 20:45 EST
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Publication:PR Newswire
Date:Nov 11, 1991
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