Newport Beach-based Pacific Mutual Life Insurance Co....

Newport Beach-based Pacific Mutual Life Insurance Co. announced Wednesday that it has acquired nearly all of the group insurance business, amounting to $35 million in annual premiums, from a K mart Corp. subsidiary.

Pacific Mutual, which would not reveal the price tag, said it will take more than 2,500 group policies from Lone Star Life Insurance Co. in Dallas on Oct. 1. The policies will be underwritten by Pacific Mutual and administered by the company and one of its subsidiaries, PM Management Services Co.

Lone Star is part of K mart Insurance Services Inc.