NU Online News Service, May 4, 2004, 5:34 p.m. EDT – Jefferson National Life Insurance Company, Louisville, Ky., says it is being investigated for potential market-timing and late-trading activities related to its variable annuities.[@@]

In a May 4 filing, the company, a unit of Inviva Inc., New York, says New York Attorney General Eliot Spitzer and the U.S. Securities and Exchange Commission are investigating it.

Representatives for the SEC and Spitzer’s office declined to comment on the filing.

Jefferson National says in the filing that the SEC and Spitzer’s office began informal investigations in November 2003. “It is impossible to predict [the investigations'] outcome and whether or not the company will incur any loss, material or otherwise,” Jefferson National says.

Jefferson National adds that it has not established any loss reserves in connection with the investigations.

The company further states that on March 12, it received a Wells notice from the SEC stating that the agency is considering filing a civil injunction action in connection with alleged violations of various securities laws. Jefferson National says it was told orally that “the action was based on alleged market-timing activity that was processed through variable annuity contracts issued by Jefferson National.”

The company further states that the New York attorney general has orally told management that it is considering a similar action.

Jefferson National says it responded to the Wells notice March 23, presenting its views on why no action was needed.

Jefferson National previously was a unit of Conseco Inc., Carmel, Ind. It was sold to Inviva in October 2002.

In an interview, a spokeswoman for Inviva said the company is cooperating fully with the SEC and regulators to reach a resolution but cannot comment on the specifics of the inquiry.