Business Deals and Market Updates

Strategic Insights -

American Annuity Group Inc. has acquired United Teacher Associates Insurance Co., expanding its presence in the insurance market. The purchase price remains undisclosed. United Teacher, which offers supplemental health insurance and retirement annuities to teachers, reported premiums of about $85 million in 1998. This deal is part of American Annuity's strategy to expand its offerings in the teacher retirement market.

Meanwhile, the Consumer Price Index rose 0.4 percent in September, the largest monthly increase since April, sparking debate over whether the Federal Reserve should raise interest rates to combat inflation. The stock and bond markets are pushing for a rate increase, but some economists caution against slowing the economy unnecessarily.

Additionally, several companies are making significant moves: Crossroads Systems Inc. is conducting its initial public offering today, while PSINet will acquire unused fiber-optic capacity from IXC Communications Inc. Bell Atlantic Corp. has received backing from the New York State Public Service Commission to sell long-distance communications services in New York.

Key Takeaways:

  • American Annuity Group Inc. acquired United Teacher Associates Insurance Co. for an undisclosed amount, expanding its presence in the insurance market.
  • United Teacher, the acquired company, reported premiums of about $85 million in 1998, primarily selling supplemental health insurance and retirement annuities to teachers.
  • The Consumer Price Index rose 0.4 percent in September, sparking debate over whether the Federal Reserve should raise interest rates.
  • Crossroads Systems Inc. is conducting its initial public offering today, pricing 3.75 million shares at $18 a share.
  • PSINet will acquire unused fiber-optic capacity from IXC Communications Inc. for an undisclosed amount.
  • The New York State Public Service Commission has backed Bell Atlantic Corp.'s bid to sell long-distance communications services in New York.

Statistics:

  • The Consumer Price Index rose 0.4 percent in September, the largest monthly increase since April (Source: Labor Department).
  • United Teacher reported premiums of about $85 million in 1998 (Source: United Teacher Associates Insurance Co.).
  • Crossroads Systems Inc. priced 3.75 million shares at $18 a share (Source: Crossroads Systems Inc.).
  • PSINet will acquire unused fiber-optic capacity from IXC Communications Inc. (Source: PSINet).
  • Bell Atlantic Corp. has 20 percent ownership in PSINet as a result of a previous purchase (Source: PSINet).

Sources:

  • American Annuity Group Inc. press release (no date given)
  • United Teacher Associates Insurance Co. press release (no date given)
  • Labor Department press release (September 14, 1999)
  • Crossroads Systems Inc. press release (no date given)
  • PSINet press release (no date given)
  • New York State Public Service Commission press release (no date given)