Local life insurance company Columbian Mutual recently announced it will not be selling new life insurance policies due to a failed transaction with insurance holding company, Constellation Insurance Holdings. 

Talks between the two companies began back in June 2021, when it was announced Constellation Holdings was planning on acquiring Columbian Mutual. 

But, just last week, the deal fell apart due to a request by Constellation to the Columbian Mutual's regulator, the New York State Department of Financial Services, that they could not agree to. 

Columbian Mutual has now decided to halt sales on new life insurance policies to save money.  The company is now laying off 25% of its sales team.

CEO of Columbian Mutual Michael Fosbury told Fox 40 on Friday, June 7 that the decision to stop selling new policies was in the best interest of policyholders. 

"We decided that it was best in the best interests of policyholders for us to stop selling new policies because those new policies are very expensive," Fosbury said. "So because of the cost of acquisition, putting a new policy on the books, you know, we lose money the first year and it's a long break even. And so to conserve capital, we decided to stop selling the new business."

Fosbury also told Fox 40 that the company's main focus now is to continue to build it's capital.