St Paul announces deal with Old Mutual

MINNESOTA � St Paul Companies is to sell its life and structured settlement business to financial services group Old Mutual. St Paul is to sell Fidelity and Guaranty Life Insurance Company (F&G Life) based in Baltimore, Maryland, and its subsidiary Thomas Jefferson Life, to Old Mutual for $675m. "The sale of F&G Life will allow us to redirect our capital to support core specialtyproperty-liability business in which we have clear competitive advantagesand to corporate initiatives that will enhance the value we provide to ourshareholders," said Douglas Leatherdale, chairman and chief executive officer of St Paul.