INSURANCE

First Capital Life Deal Reached: California insurance regulators and Shearson Lehman Bros. are holding a joint press conference in New York today to announce that they’ve reached an agreement regarding the sale of failed First Capital Life Insurance of San Diego. The companies would not discuss terms of the deal, but sources close to the transaction previously said Shearson will pump $50 million into the ailing insurer and take over its business. Policyholders are expected to get back all they invested, plus interest, if they stay with the insurer through a set rehabilitation period.