Triple-S Management Corporation has agreed to buy the Puerto Rican subsidiary of Great American Financial Resources Inc.[@@]

GAFRI, Cincinnati, says it expects to close the sale of its Great American Life Assurance Company of Puerto Rico unit to Triple-S in the first quarter of 2006.

GAFRI says it does not expect to record a material after-tax gain or loss on the sale.

GAFRI acquired the unit in 1997 for around $50 million. It says it will invest proceeds from the sale in core U. S. operations and focus on its annuity, supplemental and life insurance lines, according to S. Craig Lindner, GAFRI’s chief executive and president.

The company also says an unexpected increase in mortality in its discontinued life operations may affect its deferred acquisition costs and lead to an after-tax charge of $8 million to $10 million in the fourth quarter.

The company also says it expects its review of the “current interest rate environment” on its fixed annuity lines of business will result in an after-tax charge for the quarter of $8 million to $10 million to write off of deferred acquisition costs.

Following the sale of its Puerto Rico subsidiary, GAFRI expects to have $200 million of excess capital for “acquisitions, organic growth or other transactions designed to increase shareholder value.”

GAFRI also expects to record a net after-tax gain of about $11 million from its recently completed sale of the Driskill Hotel in Austin, Texas.