Genworth Financial Inc. says it has agreed to pay $145 million to acquire Continental Life Insurance Company, a company that sells Medicare supplement insurance.
Genworth, Richmond, Va., says it is making the deal to combine Continental Life’s strong market position and extensive distribution network with its own long term care insurance operations.
“The acquisition of Continental Life is a natural addition for Genworth Financial, given our strategy of serving the fast-growing senior markets with multiple products,” George Zippel, president of Genworth’s insurance division, says in a statement.
Continental Life, Brentwood, Tenn., was founded in 1983. It now has 4,200 agents in its sales network and about $132 million in statutory assets.
Genworth hopes to complete the Continental Life deal by June 30.
Meanwhile, Genworth has followed its past practice of giving investors a peek at its earnings on the same day that its former corporate parent, General Electric Company, Fairfield, Conn., releases its earnings.
Genworth is reporting $307 million in net income for the fourth quarter of 2005, down from $346 million in net income for the fourth quarter of 2004.
If several one-time benefits recorded in late 2004 and one small one-time benefit recorded in late 2005 are excluded, the results show that operating income increased to $300 million, from $254 million, Genworth says.