First Capital will buy E. F. Hutton Insurance.

Under the definitive agreement, First Capital Holdings, a Los Angeles-based financial services company, will pay $300 million in cash for the insurance group, which includes E. F. Hutton Life Insurance Co. in La Jolla and Great Britain’s World-Wide Reassurance. The two signed a letter of intent last month to enter into the transaction which, pending regulatory approval, is to be completed this spring. E. F. Hutton Life had pioneered so-called universal life insurance, which unbundles the insurance and investment components of the ordinary life policy.