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UICI To Sell Student Loan Unit To Sallie Mae

By Staff Writer

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NU Online News Service, Oct. 30, 2003, 12:43 p.m. EST – UICI, North Richland Hills, Texas, says it has agreed to sell Academic Management Services Corp., a unit that markets student loans and college tuition installment payment plans, to SLM Corp., Reston, Va., for $25 million in cash.

SLM, better known as Sallie Mae, will give $45 million in uninsured student loans back to UICI when it takes over, and it has agreed to assume responsibility for shutting down the financing facilities that Academic Management used to securitize student loans, UICI says.

UICI also sells long term care insurance and other products aimed at seniors, group insurance plans for students and low-cost, limited-benefit health insurance policies.

Back in May, UICI said it was trying to get rid of its senior market division, and it now says it will have to add $13 million to its group insurance reserves because claims have been higher than originally expected.