CalFed to Sell an Insurer for $140.2 Million : Insurance: The Los Angeles thrift is selling off many of its nonbanking operations.

As part of its continuing restructuring, CalFed Inc. said Thursday that it agreed to sell its annuity and life insurance subsidiary, Beneficial Standard Life Insurance Co., to an Indiana-based insurer for about $140.2 million.

The sale will result in CalFed establishing a $40-million loss provision in its current third quarter ending Sept. 30.

Under the agreement, Conseco Inc. of Carmel, Ind., will acquire Beneficial in a cash transaction. The deal, which requires approval from various state insurance regulators and others, is expected to be completed before January.

CalFed, the Los Angeles-based holding company for California Federal Bank, has sold many of its nonbanking operations since it embarked on a consolidation plan in August, 1989. The restructuring is designed to reduce CalFed’s diversified holdings to allow it to concentrate on its more profitable savings and loan operations, said James Hurley, a company spokesman.

Beneficial had a loss of $5.3 million on revenue of $150.4 million in 1989. For the first six months of 1990, Beneficial had earnings of $3.5 million on revenue of $81.1 million. Beneficial had $1.8 billion in assets at the end of the half.

CalFed will set aside $25 million to purchase certain assets and some real estate owned by Beneficial. The $40-million loss provision stems from the buy-back provision and losses related to Beneficial’s tax liabilities, CalFed said.

Also, the agreement requires CalFed to buy back up to $35 million in foreclosed property and nonperforming loans in Beneficial’s portfolio if Conseco offers them for sale over a three-year period after the deal is closed.

CalFed had earnings $82.4 million on revenue of $3.1 billion 1989. The holding company had a loss of $34.1 million on revenue of $1.2 billion during the first six months of 1990. California Federal Bank operates 200 offices in California, Florida, Nevada, Georgia and Arizona.

CalFed stock closed unchanged at $6 a share Thursday in New York Stock Exchange trading.