Pacific Mutual Life Insurance Co. of Newport Beach said that five other life insurance companies have purchased 60% of the stock in CAPP CARE, a Fountain Valley-based health insurance company, in a series of private transactions valued at $15 million.
Pacific Mutual, which holds a 20% share of CAPP CARE, said that Allstate Life Insurance Co., Home Life Insurance Co., American United Life Insurance Co., Nationwide Health Care Corp. and Provident Mutual paid $3 million apiece for their 12% stakes in CAPP CARE.
Geno Effler, a Pacific Mutual spokesman, said that Pacific Mutual and CAPP CARE each sold about half the stock purchased by the five insurers. Founded in 1982, CAPP CARE is privately held.
CAPP CARE currently offers health insurance to about 500,000 people in seven states, including California, Effler said. Proceeds of the private stock sale will be used to expand into 26 more states by the end of 1988, he said.