Company appear set to be sold to Citicorp International Insurance Company, a subsidiary of Citicorp.

The Bermuda portfolio is comprised of 170 life policies with annual premium income of about $3.2 million.

Bloomberg has reported that Peat Marwick Thorne Inc. (PMTI), acting as agent for the Superintendent of Financial Institutions, the provisional liquidator of Confederation Life, has entered into an agreement to transfer the policy liabilities.

President of PMTI, Mr. Bob Sanderson, is quoted: "This transaction means that the policyholders of the Bermuda branch have a significant uncertainty removed from their lives.'' Individual policyholders will be notified about the transaction soon, through receipt of a certificate evidencing the assumption of their policy by Citicorp International Insurance Company, after the deal is closed.

Last March, former Registrar of Companies, Mr. Malcolm Butterfield, who was also the Receiver and therefore provisional liquidator of the Bermuda branch of the troubled company, agreed that the most beneficial course of action for the policyholders was for the assets to be transferred to the Canadian liquidator.