* Deal to add to Torchmark's earnings in 2012, 2013
* Deal expected to close in early Q4
Aug 1 Life and health insurer Torchmark Corp
will buy privately held Family Heritage Life Insurance
Co of America for about $218.5 million.
Torchmark said the deal will add about 1 to 3 cents per
share to net operating earnings in 2012 and about 13 to 17 cents
per share in 2013.
The deal, which is expected to close in the fourth quarter,
will have minimal impact on Torchmark's free cash flow available
for stock repurchases, the company said.
Cleveland, Ohio-based Family Heritage, which sells
individual supplemental health insurance products, posted a net
income of $21 million for 2011.
"Family Heritage offers protection-oriented insurance to
middle income families through a captive agency force that we
believe we can help grow," said Gary Coleman and Larry
Hutchison, co-chief executives of Torchmark.
Shares of Torchmark, valued at about $4.77 billion, closed
at $49.75 on Tuesday on the New York Stock Exchange.