OneAmerica announces exit from medical stop loss business
Administrative agreement with Symetra Life Insurance Company takes effect July 1; will allow OneAmerica companies to focus on core business
Contact:
Jim Gavin, Media Relations Manager
(317) 285-4168 or jim.gavin@oneamerica.com
For Immediate Release:
Indianapolis (June 17, 2011) – OneAmerica Financial Partners, Inc. announced today that it has signed an administrative agreement allowing Symetra Life Insurance Company (Symetra) to manage its medical stop loss business, currently administered by R.E. Moulton, Inc., a OneAmerica subsidiary. Effective July 1, 2011, Symetra, will reinsure R.E. Moulton’s existing block of stop loss business and purchase the renewal rights.
"Our growth strategy requires us to intensify our focus on our core businesses of life insurance, retirement and employee benefits," said Dayton H. Molendorp, chairman, president and CEO of OneAmerica. “OneAmerica has built a reputation for critically assessing opportunities that best position us to serve our customers and deliver on our promises, and exiting the stop loss business is the right move for us."
OneAmerica’s decision was also driven by the heightened risks associated with significant changes in the health care environment, and the investment scale needed to compete in a non-core business.
Beginning July 1, employees at R.E. Moulton will report to Symetra management, who will be completing a transition plan over the next several months that may involve the retention of some of the employees at R.E. Moulton. Those not retained will be offered a strong separation package.
Keefe, Bruyette & Woods, Inc. served as OneAmerica’s financial advisor and Ice Miller provided legal counsel for the transaction.
About OneAmerica
OneAmerica Financial Partners, Inc., is headquartered in Indianapolis, IN. The companies of OneAmerica® can trace their solid foundations back more than 130 years in the insurance and financial services marketplace.
OneAmerica’s nationwide network of companies offers a variety of products to serve the financial needs of their policyholders and other clients. These products include retirement plan products and services; individual life insurance, annuities, long-term care solutions and employee benefit plan products. The goal of OneAmerica is to blend the strengths of each company to achieve greater collective results.
The products of the OneAmerica companies are distributed through a network of employees, agents, brokers and other distribution sources that are committed to increasing value to our policyholders by helping them prepare to meet their financial goals.
About Symetra
Symetra Life Insurance Company is a subsidiary of Symetra Financial Corporation (NYSE: SYA), a diversified financial services company based in Bellevue, Wash. In business since 1957, Symetra provides employee benefits, annuities and life insurance through a national network of benefit consultants, financial institutions, and independent agents and advisors. For more information, visit www.symetra.com.
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