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PHOENIX HOME LIFE TO SELL ONE OF ITS GROUP INSURANCE OPERATIONS TO COMMUNITY MUTUAL

 HARTFORD, Conn., Feb. 8 /PRNewswire/ -- Phoenix Home Life Mutual Insurance Company announced today it has tentatively agreed to sell Home Life Financial Assurance Corporation (HLFAC) and Home Life Group Benefits and Services, which together comprise the group insurance business of the former Home Life Insurance Company. The purchaser is Cincinnati-based Community Mutual, Ohio's largest health insurer.
 The transaction is subject to finalizing an agreement, as well as completing the due diligence process and receiving various regulatory approvals. The transaction is expected to close in the next two to five months.
 Phoenix Home Life, the 12th largest mutual life insurer in the country, was created upon the merger of Phoenix Mutual Life Insurance Company and Home Life Insurance Company, each of which had its own highly successful group insurance operation. At the time of the merger, Phoenix Home Life announced its intention to sell the group insurance business of the former Home Life Insurance Company. While both group operations are profitable, some state regulators had expressed concerns about one parent company running two operations in the same market with similar products.
 Phoenix Home Life will continue to operate the group insurance operation previously managed by The Phoenix. It sells group health, life, dental and short- and long-term disability insurance for businesses primarily with three to 500 employees.
 The Home Life group insurance operation based in Piscataway, N.J., provides group benefits and services, including medical, life, dental and disability insurance, to small and medium-sized businesses. The group's 770 employees serve approximately 13,000 employers with over 237,000 covered lives nationwide.
 Community Mutual provides a broad range of life, health and accident insurance programs to large and small group employers as well as to individuals, primarily in Ohio. Community Mutual is one of the nation's largest Medicare claims processors and is one of the nation's oldest developers of health maintenance organizations (HMOs). Its 3,100 employees administer programs covering nearly 2 million people.
 "The sale of the former Home Life group insurance business is a fulfillment of one of our merger goals," said John Gummere, chairman and chief executive officer of Phoenix Home Life. "This transaction will leave us well-positioned as an active participant in the group insurance market and, at the same time, it enhances Phoenix Home Life's surplus, thus adding to the financial strength of the company."
 "Major changes are expected in the management of health care in our country," said Dwane Houser, CEO of Community Mutual Insurance. "Home Life's group operations will bring us an immediate national presence plus additional strength in marketing, distribution, customer service and working with the medical and regulatory communities. We will be well-positioned to take managed care into the next century."
 "We are delighted to be joining the Community Mutual family," said James A. White, CLU, president of Home Life Financial Assurance and Home Life Group Benefits and Services. "Their financial strength and expertise will allow us to keep doing what we do best, as well as to contribute new ideas and products beneficial to our many policyholders."
 The Home Life group business will operate as an independent company within the Community Mutual corporate structure, under the direction of its current management team, headed by Mr. White. The company will continue to serve its clients through its 18 sales offices nationwide and its New Jersey and Georgia claims offices and will remain based in Piscataway. It will continue to offer its current Employee Security Program (ESP) and Clients Choice products and services through its existing national distribution networks.
 -0- 2/8/93
 /CONTACT: Tom Gariepy of Phoenix Home Life, 203-275-5946, or home, 203-659-9566; Charlotte Furman of Home Life Financial Assurance Corporation, 908-980-8315; or Lora Peters of Community Mutual Insurance Company, 513-872-8192/


CO: Phoenix Home Life Mutual Insurance Company ST: Connecticut IN: INS SU: TNM

SM-CK -- NY042 -- 4019 02/08/93 10:50 EST
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Date:Feb 8, 1993
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