Great American Financial Resources Inc. has completed a $205 million cash deal for Ceres Group Inc. and set about selling Ceres’ health insurance operations.
Ceres, Strongsville, Ohio, markets major medical insurance to consumers of all ages and a variety of insurance products to older consumers.
Great American, Cincinnati, is keeping Ceres’ senior markets business, but it announced in May that it wanted to sell the major medical business to American Enterprise Mutual Holding Company, Des Moines, Iowa, through a reinsurance arrangement with a value of about $11 million.
World Insurance Company, Omaha, Neb., an American Enterprise unit, now has formally announced that it will be acquiring Ceres’ major medical business.
The business consists of a block of 60,000 in-force policies issued through Ceres’ Continental General Insurance, Central Reserve Life Insurance Company and Provident American Life & Health Insurance Company subsidiaries, American Enterprise says.
American Enterprise “plans to market the CRL brand for up to 1 year and the CGI brand for up to 2 years,” American Enterprise says.
American Enterprise hopes to use the acquisition of Ceres’ major medical business to become a stronger player in the major medical market, American Enterprise Chairman Michael Abbott says in a statement.