Aetna Life Insurance and Annuity assumes Confederation Life Insurance and Annuity businesses

Business Wire, Oct 2, 1995

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 and guaranteed investment contract 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 of Confederation Life Insurance Co. (U.S.) in Rehabilitation (CLIC (U.S.)).

The agreement with ALIAC was approved in July by the Superior Court of Fulton county, Georgia 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.

"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, 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