Protective Life Insurance Company has signed an agreement to acquire United Investors Life Insurance Company from Liberty National Life Insurance Company for $316m, including statutory capital and surplus of around $130m at closing.

Protective said that the acquisition and related transactions, including pre-closing distributions and reinsurance agreements, are subject to final negotiation of related agreements and receipt of various regulatory approvals and other customary conditions to closing.

The initial capital invested by Protective Life is projected to be around $260m, excluding excess capital of around $56m held by United Investors at closing.

Protective chairman, president and CEO John Johns said that the transaction leverages the company’s experience and capabilities in acquiring closed blocks of business and is entirely consistent with its strategy to augment earnings growth by deploying excess capital through acquisitions.