Torchmark Announces Closing of United Investors Life Insurance Sale
December 31, 2010
Torchmark Corporation (NYSE: TMK) is pleased to announce that its subsidiary, Liberty National Life Insurance Company (Liberty) has closed the sale of its wholly owned subsidiary, United Investors Life Insurance Company (United Investors), to Protective Life Insurance Company for approximately $343 million, subject to post-closing adjustments. Prior to closing, approximately $305 million of assets, at fair value, were distributed from United Investors to Liberty. The combined total of the purchase price and the pre-closing distributions to Liberty was approximately $648 million.
The sale of United Investors will provide additional free cash flow to the parent company of approximately $250 to $320 million in 2011.
Bank of America Merrill Lynch acted as financial advisor to Torchmark.
Torchmark Corporation is a 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. Torchmark has several nationally recognized insurance subsidiaries. Globe Life And Accident Company is a direct-response provider of life insurance known for its administrative efficiencies. American Income Life provides individual life insurance to labor union members. Liberty National Life is one of the oldest traditional life insurers in the Southeast. United American is a consumer-oriented provider of supplemental life and health insurance.
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 year ended December 31, 2009 and any subsequent Forms 10-Q on file with the Securities and Exchange Commission and on the Company's website at www.torchmarkcorp.com on the Investor Relations page. Torchmark specifically disclaims any obligation to update or revise any forward-looking statement because of new information, future developments or otherwise.
SOURCE Torchmark Corporation