Protective Life to Buy MONY Life Insurance, Reinsure Certain Policies for $1.06 Billion

   By Nathalie Tadena 
 

Protective Life Corp. (PL) agreed to acquire MONY Life Insurance Co. from AXA SA (CS.FR, AXAHY) and reinsure certain life insurance policies written by a MONY subsidiary for about $1.06 billion, a deal the company said will produce a steady stream of earnings for many years to come.

As part of the deal, Protective will reinsure certain policies of MONY Life Insurance Company of America. Protective said the book of business, which is comprised primarily of life insurance policies written prior to 2004, has a limited array of product and equity market guarantees.

"This large, high quality, seasoned book of business presents one of the most attractive acquisition opportunities we have seen in many years," said Protective Chairman and Chief Executive John D. Johns.

The deal, which is expected to close in the second half of the year, is expected to add about 10 cents to 15 cents a share to Protective's full-year earnings in 2013. It is expected to contribute 55 cents to 65 cents in per-share earnings in 2014, and 65 cents to 75 cents per-share earnings in 2015.

AXA said the deal is in line with its capital management strategy and allows it to remain focused on its national distribution structure and further growth in its its core businesses of financial protection, employer-sponsored products and retirement savings.

Protective Life shares closed at $35.59 and were unchanged after hours. The stock is up 25% since the start of the year.

-Write to Nathalie Tadena at [e-mail]

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