Protective Life Insurance has signed an agreement with subsidiaries of AXA SA to acquire MONY Life Insurance and reinsure certain policies of MONY Life Insurance Company of America.
Total consideration for the deal is estimated to be nearly $1.06bn, including statutory capital and surplus of approximately $303m, assuming a closing date of 1 October.
Pending receipt of concerned regulatory approvals and satisfying other customary conditions to closing, the transaction is likely to conclude during the second half of this year.
The transaction is expected to contribute $0.10 to $0.15 to the acquirer'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.
Commenting on the acquisition, Protective chairman, president and CEO John D. 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 completing 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.
The acquirer is planning to offer services to 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.
