Continental General Acquires Block of Long-Term Care Policies

Rhea-AI Summary

Continental General Insurance Company announced a definitive agreement to acquire a block of long-term care policies from Elevance Health (NYSE: ELV). This strategic move represents one of the few successful long-term care transactions in a decade, aimed at enhancing Continental General's TPA services. The acquisition furthers Continental General's mission to become a leading acquisition partner in the long-term care sector. The deal, set to close on April 3, 2023, will leverage Continental General’s over 60 years of insurance management experience for policyholders.

Positive

• Acquisition of LTC policies enhances service offerings.
• Strengthens Continental General's position as a key player in the long-term care market.
• Continental General's experience facilitates a seamless transition for policyholders.

Negative

• None.

Company signed a definitive agreement with Elevance Health

AUSTIN, Texas--(BUSINESS WIRE)-- Continental General Insurance Company (together with its affiliates, “Continental General” or the “Company”), today announced that it signed a definitive agreement to acquire a block of long-term care (“LTC”) policies from Elevance Health, Inc. (NYSE: ELV).

The acquisition, which will be one of the few successfully consummated LTC transactions in the last decade, comes on the heels of the Company’s recently launched third-party administrator (“TPA”), Continental General Services.

Michael Gorzynski, Executive Chairman of Continental General, commented:

“The acquisition of Elevance Health’s block of LTC policies marks an exciting opportunity for Continental General. It demonstrates our commitment to growth and validates the capability of our platform to provide meaningful, permanent solutions to partners like Elevance Health. Our announcement adds to Continental General’s momentum as we strive to become the acquisition partner and administrator of choice for the long-term care industry.”

The transaction with Elevance Health will allow policyholders to benefit from Continental General’s more than 60 years’ experience administering and managing insurance blocks.

David Ramsey, President and CEO of Continental General, commented:

“Underscored by this transaction, Continental General’s team of seasoned leaders is uniquely well positioned to execute future transactions swiftly, as well as provide policyholders with the comfort and security of a seamless transition to top quality ongoing policy administration. Working alongside Elevance Health, our teams will ensure a seamless transition for all policyholders.”

The acquisition is subject to customary closing conditions and is expected to be completed on April 3, 2023. Financial terms of the transaction have not been disclosed.

About Continental General

Based in Austin, Texas, Continental General Insurance Company was incorporated as a life, accident & health insurance company in 1961. Our family of companies and strategic partners provide administrative services to approximately 100,000 policyholders. We are dedicated to upholding the commitments we have made to provide excellent service to all our policyholders and serve the needs of our claimants and their families during difficult times. Learn more about Continental General at www.cgic.com.

TPA Services provided by Continental General Services, LLC (in California doing business as Continental General Administrative Services).

Continental Insurance Group, Ltd. (“CIG") is the parent company of Continental General Management, LLC (“CGM”), Continental General Insurance Company (“CGIC”), and Continental General Services, LLC (“CGS”). CIG, CGM, CGIC, and CGS are all wholly owned subsidiaries of Continental General Holdings, LLC (“CGH”).

CGIC is a stock life, accident and health insurance company existing under the laws of the State of Texas and is a licensed insurance carrier in forty-nine states, the District of Columbia, and the U.S. Virgin Islands.

Continental General is an umbrella marketing name for CGM, CGIC, and CGS.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230331005090/en/

For Media:

Longacre Square Partners

Greg Marose / Casie Connolly

ContinentalGeneral@longacresquare.com

Source: Continental General Insurance Company

FAQ

What is the acquisition deal between Elevance Health and Continental General?

Continental General is acquiring a block of long-term care policies from Elevance Health, marking a significant transaction in the long-term care industry.

When is the completion date for the Elevance Health acquisition?

The acquisition is expected to be completed on April 3, 2023.

What does the acquisition mean for Elevance Health's policyholders?

Policyholders will benefit from Continental General's 60 years of experience in managing insurance blocks, ensuring quality administration.

How does this acquisition impact Continental General's business strategy?

This acquisition reinforces Continental General's commitment to growth and positions it as a premier partner and administrator in the long-term care industry.

Are financial terms disclosed for the Elevance Health acquisition?

No, the financial terms of the transaction have not been disclosed in the press release.