Universal American Transfers Life Block

Universal American is making the deal to increase capital levels and help it focus on its core Medicare plan operations and other core operations, the company says.

Universal American will have to write off some unamortized deferred acquisition costs, and the DAC write-off will lead to a loss of about $5 million in financial reports prepared according to the Generally Accepted Accounting Principles standard, Universal American says.

But the transaction should reduce company capital needs by more than $10 million, Universal American says.