HC2 Holdings — a conglomerate that owns a wide range of companies — has succeeded at selling a long-term care insurance (LTCI) business.
The firm announced Wednesday that it sold the business, Continental Insurance Group Ltd., to MG Capital Management Ltd. for $65 million in cash and about $25 million in Continental Insurance assets.
The MG Capital-Continental deal includes two Continental Insurance Group subsidiaries, Continental Insurance Company and Continental LTC Inc., as well as Continental Insurance Group.
Continental first entered the LTCI business by acquiring two LTCI issuers from Great American Financial Resources in 2015. The company is best known for acquiring Kanawha Insurance Company, a longtime LTCI issuer, from Humana in 2018.
Michael Gorzynski, the managing member of MG Capital, started out about a year ago as a dissident HC2 investor. He argued that HC2 had too much debt, had a haphazard corporate strategy and lacked directors with insurance expertise.
Gorzynski went on to win a seat on the Continental board and became Continental’s chairman and president in October 2020. He owns 6.6% of HC2′s stock.
Continental Insurance has offices in Austin, Texas, and says it’s administering insurance policies and annuity contracts for about 125,000 LTCI, life, annuity and supplemental health insurance customers.
