Allmerica Financial Corporation has agreed to sell off the last of its life insurance business.[@@]

The company, based in Worcester, Mass., says it has entered into an agreement with the Goldman Sachs Group Inc. to sell its variable life insurance and variable annuity businesses.

AFC says it will ask the Massachusetts Division of Insurance for a dividend of $40 million from its remaining life business. It projects total cash proceeds from the sale and the dividend to be around $385 million.

The actual purchase price will be determined at closing, subject to changes in equity market levels, interest rates, surplus levels and policy surrenders, the company says.

“This transaction delivers on our strategy to monetize the value of our life business that has been in run-off since 2002 and enables us to apply even greater focus on the continued growth of our property and casualty business,” says Frederick H. Eppinger, president and chief executive officer of Allmerica.