Protective Life has received insurance regulatory approvals required in order for its subsidiary Protective Life Insurance to acquire MONY Life Insurance, as well to reinsure certain policies of MONY Life Insurance Company of America (MLOA).
On 10 April 2013, Protective Life Insuranceinked an agreement with AXA to purchase MONY Life Insurance companyand reinsure certain policies of MLOA in a transaction valued at approximately $1.06bn, including statutory capital and surplus of almost $303m.
The transaction is expected to contribute $0.10 to $0.15 to the Protective Life’s fully diluted earnings per share in 2013, $0.55 to $0.65 in 2014, and $0.65 to $0.75 in 2015, net of integration and transition costs.
Protective chairman, president and CEO John Johns said, "This book of business, comprised primarily of life insurance policies written prior to 2004, has a limited array of product and equity market guarantees and should produce a steady and predictable stream of earnings for many years to come."
Before closing the transaction, MONY will transfer other subsidiaries including MLOA, US Financial Life Insurance, MONY International Holdings, and MONY Financial Services to AXA, which is not part of the deal.
Protective Life is planning to operate the acquired business through its existing workforce and administrative platform in Syracuse, New York, presently being used by AXA to service the business.
Willkie Farr & Gallagher and Barclays acted as advisors to Protective and PricewaterhouseCoopers offered tax advisory services, pertaining to the transaction.
Protective Life noted that it expects to close the transaction early in the fourth quarter, subject to the satisfaction and fulfillment of customary closing conditions.
Protective Life offers insurance and investment products across the US, and had annual revenues of nearly $3.6bn and as of 31 December 2012, and assets of approximately $57.4bn.