April 10 Protective Life Corp said it
will buy Mony Life Insurance Company from parent AXA SA
for $1.06 billion to access its portfolio of life
The company sees the deal adding between $0.10 and $0.15 to
its earnings per share in 2013 and between $0.55 and $0.65 per
share in 2014.
"This book of business, comprised primarily of life
insurance policies written prior to 2004 ... should produce a
steady and predictable stream of earnings for many years to
come," Protective Life Chief Executive John Johns said in a
Shares of the Birmingham, Alabama-based company closed up 2
percent at $35.59 on the New York Stock Exchange on Wednesday,
prior to the announcement.
Last month, people familiar with the situation said
Protective Life was the leading candidate to buy U.S. life
insurance assets from Axa, which has been expanding into
emerging markets while scaling back its presence in North
America after years of underperformance in that region.
Willkie Farr & Gallagher LLP and Barclays PLC served as
financial advisers to Protective Life for the deal.
Including a capital surplus of $303 million, the total
investment by Protective Life is about $1.09 billion, the