Torchmark Corporation's Management Exercises Options
August 10, 2001
Earlier today Torchmark (NYSE: TMK) executed a voluntary stock option exercise and restoration program in which 123 directors and employees exercised vested options on Torchmark common stock and received replacement options at the current market price. As a result, Torchmark issued 4.0 million new shares to the participants. However, 3.5 million of the new shares were immediately sold through the open market by the participants to cover the option exercise price of their new shares and their related income taxes. As a result of the program, management's ownership in Torchmark increased and the Company will receive a significant current tax benefit from the exercise of the options. The volume of shares available in the market as a result of the exercise program substantially exceeded the normal daily volume of Torchmark shares traded. In connection with its ongoing share buyback program Torchmark expects to acquire in excess of 3.0 million open market shares of its common stock today.
Torchmark Corporation is a financial services holding company specializing in life and supplemental health insurance for "middle income" Americans marketed through multiple distribution channels including direct response, and exclusive and independent agencies. Subsidiary Globe Life and Accident is a nationally recognized direct-response provider of life insurance known for its administrative efficiencies. United American has been a nationally recognized provider of Medicare supplement health insurance since 1966. Liberty National Life, one of the oldest traditional life insurers in the Southeast, is the largest life insurer in its home state of Alabama. American Income Life is nationally recognized for providing supplemental life insurance to labor union members.
Caution regarding forward-looking statements:
This press release may contain forward-looking statements within the meaning of the federal securities laws. These prospective statements reflect management's current expectations, but are not guarantees of future performance. Accordingly, please refer to Torchmark's cautionary statement regarding forward-looking statements, and the business environment in which the Company operates, contained in the Company's Form 10-K for the fiscal year ended December 31, 2000, and Form 10Q for the quarter ended March 31, 2001, on file with the Securities and Exchange Commission. Torchmark specifically disclaims any obligation to update or revise any forward-looking statement because of new information, future developments or otherwise.
SOURCE Torchmark Corporation
Contact: Joyce Lane, Vice President, Investor Relations of Torchmark Corporation, +1-972-569-3627, or fax, +1-972-569-3696, or firstname.lastname@example.org
Web site: http://www.torchmarkcorp.com/