Protective Buys MONY Life Insurance

[Brokers Alliance]

BIRMINGHAM, Alabama -- Birmingham-based Protective Life Insurance Company (NYSE: PL) announced Wednesday that it will buy MONY Life Insurance from AXA SA for more than $1 billion.

Birmingham-based Protective Life Insurance to buy MONY Life Insurance for $1 billion | al.com

 

[Mattschmidt]

Wow! Big time move for Protective!

 

[InsuranceMonkey]

Protective Life Insurance Company announced today it has signed an agreement with certain subsidiaries of AXA to acquire MONY Life Insurance Company (“MONY”) and reinsure certain policies of MONY Life Insurance Company of America (“MLOA”).

"This large, high quality, seasoned book of business presents one of the most attractive acquisition opportunities we have seen in many years," said John D. Johns, Protective's Chairman, President and Chief Executive Officer. “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. Our ability to move forward on such an important transaction again demonstrates our company’s ability to leverage our industry-leading acquisition capabilities to create value for our shareholders."

The transaction is expected to close in the second half of 2013 and is subject to receipt of various regulatory approvals and other customary conditions to closing. Protective plans to service the acquired business through the existing workforce and administrative platform located in Syracuse, NY.Once the closing has occurred, Protective will gain approximately 660,000 policies, roughly 80 percent of which are life insurance.

MONY is a New York domiciled company founded in 1842 as Mutual Life Insurance Company of New York. MONY demutualized in 1998, and it has written only minimal new business since AXA Financial acquired the company in 2004. MLOA is an Arizona domiciled company and is a subsidiary of MONY.

Ineedtopostatleast20charactersoutsidethequotesohereitis.

 

[VolAgent]

Isn't MONY still busy writing par-WL? How is that going to fit in with Protective's model of cheap term?

 

[InsuranceMonkey]

I believe what Protective is doing is buying a specific (large) book of business from MONY. Once MONY is aquired, they could sell off less desireable books of business, kill products outside Protective's focus, align MONY to reflect Protective's goals.

 

[InsuranceMonkey]

Welcome to the game.

 

[BNTRS]

Well my only question is who gets the towers in Syracuse?

 

[scottstreet]

Jim Boeheim............

 

[Brokers Alliance]

[FONT=Times New Roman","serif]AXA today announced the sale of a closed book consisting of MONYLife Insurance Company and a portion of the MONY Life Insurance Company ofAmerica (MLOA) life insurance policies, primarily written prior to 2004, toProtective Life Insurance Company in exchange for more than $1 billion in cash.A link to the full Press Release is below for your information.[/FONT]

[FONT=Times New Roman","serif]In terms of what this means for us as a company and our position as an industryleader – we consider this all very good news. We believe that the U.S. representsone of the most exciting and profitable markets for Retirement Savings and LifeInsurance and we fully intend to continue to compete and succeed in this arena.This financial transaction supports AXA 's capital management and in-forceoptimization objectives, allowing us to unlock capital and to concentrateresources on continued growth in the U.S. market. By optimizing capital, we areable to focus our national distribution structures, network of financialprofessionals and distribution partners on further accelerating our profitablegrowth in our core businesses.[/FONT]
[FONT=Times New Roman","serif]
We feel this transaction is a reflection of our commitment to the industry andour desire to continue to innovate and improve the way we do business. We arecommitted to delivering on our promises to clients, pursuing new opportunitiesto grow and operating efficiently to ensure our long-term competitiveness.

As always, we appreciate our partnership with you and we look forward tocontinuing to help you help your clients in meeting their financial goals nowand in the future.

If you have any questions, please call the AXA Life Sales Desk at 800-924-6669.


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[InsuranceMonkey]

LOL! Interesting to see the positive win-win spin from both sides. Protective gets an investment with long term payouts, AXA gets a money injection freeing up capital.

When both sides feel they got a good deal - that's good business.