Signalling its regaining of
financial health, Protective Life Insurance Company, which in
early-2009 was an unsuccessful applicant for assistance under the
US Treasury’s Troubled Asset Relief Program, is to acquire United
Investors Life (UIL) from Liberty National Life (LNL) in a deal
worth $316m.
Prior to the closing of the deal,
UIL will distribute $332m to LNL, taking its total receipts to
$648m.
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Protective Life chairman, president
and CEO John D Johns said: “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.”
Protective Life has annual revenues
of about $3.1bn and the end of 2009 reported assets of $42.3bn.
LNL is a subsidiary of Texas-based
Torchmark Corporation, a holding company specialising in life and
supplemental health insurance for middle income consumers.
