Protective to Acquire United Investors Life
September 14 2010 - 8:30AM
Business Wire
Protective Life Corporation (NYSE: PL) (“Protective”) today
announced that its principal subsidiary, Protective Life Insurance
Company (“Protective Life”), has signed an agreement to acquire
United Investors Life Insurance Company from Liberty National Life
Insurance Company (“Liberty National”) for a purchase price of
approximately $316 million, including statutory capital and surplus
of approximately $130 million at closing. Liberty National is a
subsidiary of Torchmark Corporation (NYSE: TMK). The acquisition
and related transactions, including pre-closing distributions and
reinsurance agreements, are subject to the final negotiation of
related agreements and receipt of various regulatory approvals and
other customary conditions to closing. The expected closing date is
December 31, 2010.
The initial capital invested by Protective Life is projected to
be approximately $260 million, excluding excess capital of
approximately $56 million held by United Investors Life Insurance
Company at closing. The acquisition is expected to contribute
between $0.15 and $0.20 to Protective’s earnings per diluted share
in 2011, net of the effect of integration and transition costs. The
earnings per diluted share impact is expected to be between $0.18
and $0.22 in 2012.
“We are very pleased to announce this transaction,” said John D.
Johns, Protective’s Chairman, President and Chief Executive
Officer. “It leverages our extensive experience and capabilities in
acquiring closed blocks of business and is entirely consistent with
our strategy to augment earnings growth by deploying excess capital
through acquisitions.”
The Company will host a brief conference call for management to
discuss the transaction with analysts and professional investors on
September 14, 2010 at 10:00 a.m. Eastern. Analysts and professional
investors may access this call by dialing 1-866-783-2137
(international callers 1-857-350-1596) and entering the conference
passcode: 37088882. A recording of the call will be available from
12:00 p.m. Eastern September 14, 2010 until midnight September
28, 2010. The recording may be accessed by calling 1-888-286-8010
(international callers 1-617-801-6888) and entering the passcode:
26768943.
The public may access a live webcast of the call, along with a
call presentation, on the Company’s website at
www.protective.com.
Protective Life Corporation provides financial services through
the production, distribution and administration of insurance and
investment products throughout the United States. It has annual
revenues of approximately $3.1 billion and as of December 31,
2009 had assets of approximately $42.3 billion.
FORWARD-LOOKING STATEMENTS
This release includes “forward-looking statements” that may
express expectations of future events and results regarding the
proposed transactions, including but not limited to statements
regarding the expected benefits and costs of the proposed
transactions, the ability to complete the proposed transactions,
and the expected timing of the completion of the proposed
transactions. All statements that express expectations for and
results of future events rather than historical facts are
forward-looking statements that may involve certain risks and
uncertainties. Protective cannot give assurance that such
statements will prove to be correct. The factors that could affect
the future events include, but are not limited to, general economic
conditions and the following known trends and uncertainties:
Protective Life may not be able to complete the transactions due
to, among other things, the failure of the parties to satisfy the
various closing conditions, including the receipt of required
regulatory approvals; completion of the transactions may be more
costly or may take longer than expected; the financing structure of
the transactions may be different than currently contemplated; the
actual financial results of the transactions could differ
materially from Protective’s expectations and may be impacted by
items not taken into account in its forecasts and/or its earnings
per share calculations; and Protective Life’s expectations
regarding its ability to successfully integrate and transition the
acquired operations and satisfy its legal and compliance
obligations in relation to the transactions may prove to be
incorrect. In addition, please refer to Part I, Item 1A, Risk
Factors and Cautionary Factors that may Affect Future Results of
Protective’s most recent Form 10-K; Part II, Item 1A, Risk Factors,
of Protective’s subsequent quarterly reports on Form 10-Q; and
Protective’s reports filed on Form 8-K for more information about
risk factors. Protective assumes no obligation and does not intend
to update these forward-looking statements.
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