Columbian Mutual to stop selling life insurance

Columbian Mutual Life , a life insurer based in Binghamton, NY, will not be issuing any new life insurance policies and is laying off 25% (~70) of its employees, according to multiple media reports.

In 2021, Columbian Mutual announced that it was being acquired by Constellation Insurance Holdings, and as part of the deal, Constellation would invest up to $100 million to fund cash payments to eligible policyholders and to strengthen capitalization and financial ratings of Columbian Mutual. However, the life insurer now reports that that deal is not being completed.

“It is with deep regret that we were not able to close on this previously announced transaction. Management will continue to prioritize the best interests of our policyholders as we transition into the next phase of the company’s lifecycle.” – President & CEO Michael Fosbury.

Founded in 1882, Columbian Mutual has ~700k policyholders.