American General agrees to sell group line for $195M.

National Underwriter Life & Health-Financial Services Edition, October, 1989 by Knowles, Robert G.

American General Agrees To Sell Group Line For $195M

After a 12 month search for a buyer, American General Corp. has agreed to sell its $800 million-a-year group life and health insurance operation to Associated Insurance Companies, Inc., of Indianapolis, Ind. for $195 million.

The sale will end the Houston-based financial service giant's involvement in more cyclical, less predictably profitable lines of insurance, according to Robert D. Mrlik, American General director of investor relations.

"We made an announcement last August that American General wanted to divest itself of its property-casualty and group business," he told the National Underwriter. "We want business lines that are not cyclical, with more predictable cashflow and income...

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