NU Online News Service, June 26, 11:03 a.m. – CNA Financial Corp., Chicago, says it has agreed to sell the variable life and variable annuity operations of its Valley Forge Life Insurance Company unit to The Phoenix Companies Inc., Hartford, through a coinsurance arrangement.
CNA denies that completing the transaction would result in a “material” gain or loss, but it declines to give more information about the terms, other than to say that it hopes to complete the deal by Sept. 30.
CNA is making the move to focus more on its core life and group insurance operations, CNA says.
The CNA variable life and variable operations control more than 12,600 contracts with a total account value of about $624 million.
Phoenix would acquire the CNA operations through a subsidiary, PHL Variable Insurance Company. PHL Variable Insurance would end up with a 100% economic interest in the operations, but Valley Forge would continue to administer the contracts for some time after the closing, the companies say.