PennCorp Financial Group Inc. said Friday it has sold United Life and Annuity Insurance Co. to ING Group of Amsterdam for about $154 million.

The deal also includes UC Mortgage Corp. and Cyberlink Development Inc.

The price includes $136.5 million of cash that PennCorp has received plus some loans and assets that bring the total to $152 million. PennCorp is also due to receive roughly $2 million based on United Life's fourth- quarter statutory gain from operations.

Financially troubled Penncorp, a holding company for several insurance companies, has been selling off assets to reduce debt. The proceeds from the sale are subject to further adjustment following a 90- day reconciliation period.

United Life sold $118 million of variable and fixed annuities in 1997, the latest year for which data are available, and ranked 99th among insurance companies by that measure, according to Limra International of Windsor, Conn.

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