HC2 Holdings Inc., a publicly traded company that buys and manages other companies, says it lost money on its insurance operations during the 12-month period that ended Sept. 30, 2016.
The New York-based holding company published a little bit of information about the unit, which manages a block of about 55,000 long-term care insurance policies, in a packet of documents filed with the U.S. Securities and Exchange Commission.
HC2 filed the documents because it’s seeking to borrow $45 million from investors, by issuing senior secured notes. The company is offering the notes only to insurers, mutual funds and other institutional buyers, not to ordinary retail investors.
The notes will pay an interest rate of 11 percent and are due in 2019.
HC2 says it wants to use some of the cash it borrows to refinance another note it used to make two deals for industrial companies in December.
HC2 provided an excerpt from its financial report to show potential note buyers how it’s calculating earnings.
The excerpt shows that the insurance unit lost $10.4 million during the 12-month period that ended Sept. 30, and $12 million during the first three quarters of calendar-year 2016.
The company as a whole lost $44.5 million for the 12-month period, and $33 million for the first three quarter of 2016.
The company has also been advertising for a premium tax associate and a claim examiner in Austin, Texas.
HC2 says in the help wanted ads that the insurance unit there operates as Continental Insurance Inc. and is primarily focused on managing the LTCI portfolio. The company also is “pursuing opportunities to expand its long term care insurance portfolio through acquisitions and strategic partnerships,” according to the ads.
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