May. 5, 2008 at 11:04am

Court approves sale of Western United

Thurston County Superior Court has approved the sale of Western United Life Assurance Co. to Global Life Holdings LLC for a new projected purchase price of $55 million. 

"I'm very pleased that we reached an agreement and that the court approved the sale," said Insurance Commissioner Mike Kreidler. "We have an increased purchase price that's in the best interest of everyone involved, and we avoid a potentially lengthy and expensive legal battle."
 
Kreidler invited the involvement of the parent companies, Metropolitan Mortgage and Securities, Inc.  and Western United Holding Co. and said it strengthened what was already a good deal.
 
Global Life originally proposed purchasing Western United for capital and surplus, which is estimated to be more than $50 million at closing, but has agreed to kick-in an additional $2 million in cash and another $2 million from the future sale of specific real estate. The total amount of the sale will be based on an adjusted capital and surplus at the time of the closing.
 
Kreidler was granted receivership of Western United in 2004 in order to protect the company and its policyholders from the bankruptcy of its parent company.

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