HC2 has entered into a definitive agreement to sell its insurance segment to Continental General, an entity controlled by the company’s director Michael Gorzynski.

The transaction covers Continental Insurance Group and its fully-owned subsidiaries, Continental General Insurance Company and Continental.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Continental General will finance the deal through combination of $65m in cash plus securities, including certain assets of the firm.

HC2 received a non-binding indication of interest from the buyer last December.

The company said it plans to use the proceeds from the deal for general corporate purposes.

HC2 chairman Avie Glazer said the sale of Continental will allow the company to focus on its three core operating segments – Infrastructure, Life Sciences and Spectrum.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

HC2 president and CEO Wayne Barr, Jr called the deal ‘a further opportunity’ to enhance the company’s capital structure.

Commenting on the deal, Gorzynski said: “This transaction can help HC2 achieve key strategic objectives pertaining to portfolio optimization and balance sheet strength, while enabling Continental to accelerate the execution of its strategy.

“Continental is focused on developing an industry-leading servicing platform, diversifying into new lines of business and further capitalizing on market consolidation. I look forward to continuing to help build a Continental that is a valued true partner to all policyholders and stakeholders.”

The deal, subject to regulatory approvals, is expected to close in the third quarter of the year.

In 2015, HC2 agreed to buy American Financial Group’s long-term care and life insurance businesses.