MCKINNEY, Texas, Sept. 14 /PRNewswire-FirstCall/ -- Torchmark Corporation (NYSE: TMK) announced that its subsidiary, Liberty National Life Insurance Company (Liberty), has signed an agreement to sell its wholly owned subsidiary, United Investors Life Insurance Company (United Investors), to Protective Life Corporation for a purchase price of approximately $316 million, including adjusted statutory capital and surplus at closing expected to be approximately $130 million after approximately $332 million of pre-closing distributions from United Investors to Liberty. The combined total of the purchase price and the pre-closing distributions to Liberty is approximately $648 million. The expected closing date is December 31, 2010.
Mark S. McAndrew, Chief Executive Officer and Chairman of Torchmark, stated, "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. We believe this transaction enhances shareholder value as it will provide additional capital and allow us to focus completely on our core protection life and health insurance business."
Bank of America Merrill Lynch acted as financial advisor to Torchmark.
Torchmark Corporation is a holding company specializing in life and supplemental health insurance for "middle income" Americans marketed through multiple distribution channels including direct response, and exclusive and independent agencies. Torchmark has several nationally recognized insurance subsidiaries. Globe Life And Accident is a direct-response provider of life insurance known for its administrative efficiencies. American Income Life provides individual life insurance to labor union members. Liberty National Life is one of the oldest traditional life insurers in the Southeast. United American is a consumer-oriented provider of supplemental life and health insurance.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS:
This press release may contain forward-looking statements within the meaning of the federal securities laws. These prospective statements reflect management's current expectations, but are not guarantees of future performance. Accordingly, please refer to Torchmark's cautionary statement regarding forward-looking statements, and the business environment in which the Company operates, contained in the Company's Form 10-K for the year ended December 31, 2009, and any subsequent Forms 10-Q on file with the Securities and Exchange Commission and on the Company's website at www.torchmarkcorp.com on the Investor Relations page. Torchmark specifically disclaims any obligation to update or revise any forward-looking statement because of new information, future developments or otherwise.
SOURCE Torchmark Corporation