DOW JONES NEWSWIRES
Protective Life Corp. (PL) agreed to acquire United Investors
Life Insurance Co. from Torchmark Corp. (TMK) for $316 million.
However, Protective Life will pay just $260 million owing to the
target's excess capital of about $56 million. The deal is valued at
a total $648 million to Torchmark unit Liberty National Life
Insurance Co. as it also includes about $332 million of preclosing
distributions from United Investors to Liberty.
Protective Chairman and Chief Executive John D. Johns said the
acquisition of United Investors, which sells life insurance and
annuity products, adds to its experience in acquiring closed blocks
of business and is consistent with plans to grow through
acquisitions. Closed-block businesses are those in which new
policies aren't issued.
Torchmark Chairman and Chief Executive Mark S. McAndrew said,
"We are very pleased to announce this agreement. While United
Investors has been a valuable asset, its primary operations involve
lines of business that we no longer emphasize."
Protective Life expects the acquisition to add 15 cents to 20
cents a share to earnings next year; analysts' average estimate is
$2.89 a share, according to Thomson Reuters.
Protective Life last month reported second-quarter earnings fell
54% on investment losses and write-downs, though sales rose across
its business segments.
Protective and Torchmark shares closed Monday at $21.08 and
$53.73. Neither were active premarket.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com