UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or Section 15(d) of
The Securities Exchange Act of 1934
Date of Report: June 4, 1996
WASHINGTON NATIONAL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-7369 36-2663225
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
300 Tower Parkway, Lincolnshire, Illinois 60069
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (847) 793-3000
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Item 5. Other Events
WASHINGTON NATIONAL CORPORATION ANNOUNCES SALE OF INDIVIDUAL
HEALTH INSURANCE BUSINESS TO PIONEER FINANCIAL SERVICES
Washington National Corporation announced on June 4, 1996 an
agreement to sell its Health Division's individual health
insurance business to Pioneer Financial Services, Inc. of
Schaumburg, Illinois. Washington National also announced it is
seeking buyers for its large group life and health insurance
business and expects to arrange a sale of that business within 60
days.
Management believes the divestiture creates greater operating
focus while the Corporation continues to explore strategic options
for the remainder of the enterprise.
Pioneer will purchase the individual health and small group life
and health insurance business in a reinsurance transaction for
cash consideration of $19 million to be paid at closing. Pioneer
will employ certain Health Division employees and will assume
certain leases and other obligations of the business.
Approximately $45 million of regulatory capital, previously
required to support the health division business will become
available for other corporate purposes, which might include
repurchase of the Corporation's stock, investment in the remaining
businesses, or a special dividend.
Washington National plans to eliminate certain support positions
no longer required once it exits the health insurance business.
Washington National Insurance Company's defined benefit pension
plan will be terminated and the Corporation will repurchase
416,000 shares of its common stock and 17,000 shares of its
preferred stock held by that pension plan. The Corporation expects
to post a loss on the exit from the health business of
approximately $20 million, after taxes, including expenses
associated with the pension plan termination and severance costs.
The remaining businesses are universal life insurance and
annuities written exclusively by United Presidential Life
Insurance Company, the Corporation's Indiana-based insurance
subsidiary, and the Education market which is served by Washington
National Insurance Company.
The transaction is subject to regulatory approval and is expected
to close in the third quarter of 1996.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
WASHINGTON NATIONAL CORPORATION
(Registrant)
Date: June 5, 1996 By: /s/ Joan K. Cohen
Joan K. Cohen, Vice President
Controller and Treasurer
