Penn Treaty American Corporation Completes Sale of Disability Business
ALLENTOWN, Pa., Oct. 26 /PRNewswire/ -- Penn Treaty American Corporation (NYSE: PTA) today announced that it has completed the sale of its individual disability income insurance portfolio to Assurity Life Insurance Company. The sale of the disability portfolio, which is initially in the form of reinsurance pending regulatory and policyholder approval, is retroactive to September 1, 2001. A letter of intent regarding the transaction was previously announced on August 13, 2001.
Proceeds of approximately $5 million from the sale increase the statutory surplus level of PTA's insurance subsidiaries. In addition to the sale of its individual disability income portfolio, the Company is in negotiations for the sale of certain other non-core business lines, including its New York insurance subsidiary and Medicare supplement policies.
Irving Levit, Chairman and CEO of PTA, commented, "With the sale of the disability portfolio, we have successfully reached another milestone in our efforts to strengthen our statutory capital position. Along with several other financial strategies that we are pursuing, this step further enables us to focus on our core long-term care insurance business."
The disability income policies had been underwritten by American Network Insurance Company, which is owned by Penn Treaty Network America Insurance Company, a directly held PTA subsidiary. |
