Indianapolis-based financial services holding company Standard Management Corporation has agreed to sell its life insurance unit to Capital Assurance Corporation for around $82 million.
Standard Management’s chairman and CEO, Ronald Hunter, explained that the agreement was the culmination of a 16-month negotiation process. The company is expected to use a portion of the cash proceeds from the sale to expedite growth in its health services segment.
Kentucky-based Capital Assurance Corporation, which is funded by several private equity groups, will complete the transaction in the second quarter of 2005, subject to shareholder approval.
This transaction provides both Standard Management and Capital Assurance an opportunity to pursue their respective business initiatives while optimizing values for all parties to the transaction, stated Mr Hunter.