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Article: Mercury sells life insurance unit for $92M.(Mercury Finance Co. sells Lyndon Insurance Group to Frontier Insurance Group Inc.)(Brief Article)
- Article from:
- American Banker
- Article date:
- April 1, 1997
- Author:
CopyrightCOPYRIGHT 1997 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Mercury Finance Co. sold its life insurance subsidiary last week for less than its book value.
The beleaguered Lake Forest, Ill., subprime auto finance company said Friday that it would sell Lyndon Insurance Group to Frontier Insurance Group Inc., Rock Hill, N.Y., for $92 million.
Standard & Poor's Corp. said Monday that it was reviewing Frontier's credit rating for a possible downgrading as a result of the purchase.
Mercury bought Lyndon from ITT Corp. in October 1995 for $72.5 million as the Illinois company, then the darling of the booming subprime industry, sought to diversify.
"We need to get people to understand we don't just finance ...