Harvard Gives Insurance To Two Black Companies

Harvard last week transferred 20 per cent of its $228 million in group life insurance to America's two largest black owned life insurance companies.

The North Carolina Mutual Insurance Company and the Atlanta Life Insurance Company will each get about $22.5 million of the University's life insurance, with the Aetna Life Insurance Company keeping the rest.

North Carolina Mutual and Atlanta Life are the two largest black-owned businesses in the country. The agreement with Harvard is Atlanta Life's first with a predominantly-white university.

Walter J. Leonard, special assistant to President Bok, negotiated the agreement with executives of the two insurance companies.

The president of both companies said last night that they approached Harvard during the past year about contracting for some of its life insurance as part of a nationwide effort to get small amounts of the life insurance of major corporations and universities.

"We have been quite successful with the major corporations, ones in the Fortune 500." William J. Kennedy III, president of North Carolina Mutual, said. He said his company has all the life insurance for some black universities, including Morehouse and Howard, and is negotiating with several white universities.

Usually Lees

Jesse E. Hill Jr., president of Atlanta Life, said most of the major corporations his company has agreements with give Atlanta Life 10 to 15 per cent of their group life insurance.

"I don't know of any major educational institution that has taken this step, and I don't know of any institution that has gone as high as 20 per cent," Hill said.

He said Leonard arranged the first cooperation on an insurance plan between Atlanta Life and North Carolina Mutual after both companies had routinely and individually solicited Harvard.

The University offers group life in- surance to all faculty and employees, and pays their premiums after they have worked here for one year.

North Carolina Mutual has more than $2 billion in insurance and is the 177th largest insurance company in America. Atlanta Life has $500 million in insurance.

Mutually Beneficial

Leonard was out of town and unavailable for comment yesterday, but in a statement last week he said. "The agreement is a mutually beneficial one. Our joint venture will not only enhance North Carolina Mutual Life Insurance Company's and the Atlanta Life Insurance Company's and the Atlanta Life Insurands Company's image as growing and strong companies, but it will, simultanceutly, radiate Harvard's concern for the development and growth business enterprises.

Bok said last week, "Our agreement represents a happy combination of a sound business decision and an important contribution in Harvard's continuing commitment to the principles of affirmative action and equal opportunity for minority owned enterprises.