Penn Treaty American is expected to sell ANIC
Penn Treaty American is expected to sell insurance subsidiary. Penn Treaty American, a provider of long-term care insurance in the US, has entered into a non-binding letter of intent to sell a majority interest in its insurance subsidiary American Network Insurance (ANIC) and its business operations, as stated.
The terms of the anticipated transaction as said by the company include the sale of the majority of the equity interests in one of the company’s insurance subsidiaries, American Network Insurance, including substantially all of the company’s long-term care insurance policies issued after December 31, 2001.
In connection with the anticipated transaction, new long-term care insurance policies are expected to be issued by American Network Insurance as soon as practical following the closing of the sale; the company will retain ownership of all long-term care insurance policies issued prior to the year 2002; and the company will transfer substantially all long-term care insurance operations to
the purchaser.
The company anticipates that its insurance subsidiary, Penn Treaty Network America Insurance (PTNA) will enter rehabilitation by its domiciliary state of Pennsylvania on January 2, 2009. The completion of the transaction contemplated by the non-binding letter of intent is not expected to prevent Penn Treaty Network America Insurance from entering rehabilitation.