Dai-ichi Life Insurance’s US wholly-owned subsidiary Protective Life has agreed to acquire certain blocks of term-life policies from Genworth Financial, for around $661m.
Protective Life, through its wholly-owned subsidiary, Protective Life Insurance, has signed an agreement to purchase certain in force blocks of term life insurance through reinsurance from Genworth.
Protective chairman, president and CEO John D. Johns said: "We are seeing good acquisition opportunities in the market, and we are confident that our proven, industry-leading acquisition capabilities provide a solid platform for continued strong growth at Protective."
The majority of the term life insurance blocks included in the deal are currently reinsured to River Lake Insurance and Company and River Lake Insurance Company II.
Once the deal concludes, it is claimed to be the second largest for Protective based on capital invested. Dai-ichi Life acquired Protective to expand its operation in North America.
Dai-ichi Life president Koichiro Watanabe said: "We have been pleased at our success to enter the U.S. life insurance market working through such an outstanding company as Protective.
"Utilizing Protective’s distinctive acquisition capabilities, we are now able to announce this important acquisition and report good progress on the goals we laid out in our 3-year D-Ambitious plan."
Subject to customary regulatory approvals and closing conditions, the deal is expected to complete in the first quarter of 2016.
Based in Birmingham of Alabama, Protective Life offers financial services through the production, distribution and administration of insurance and investment products across the US.
Dai-ichi Life, which was based in Tokyo of Japan, has overseas life insurance businesses in Australia, Vietnam, Indonesia, India and Thailand. It also has offices in New York, Singapore, London, Beijing, and Shanghai.
Image: Protective Life Insurance to acquire certain in force blocks of term life insurance from Genworth. Photo: courtesy of Vichaya Kiatying-Angsulee/ FreeDigitalPhotos.net.