Protective acquires MONY Life Insurance
Protective Life Insurance Company, a subsidiary of Protective Life Corporation, has completed the acquisition of MONY Life Insurance Company and has reinsured certain policies of MONY Life Insurance Company of America.
The total transaction price was $1.06 billion. The MONY purchase price was $686 million, subject to customary post-closing adjustments, and the ceding commission for the reinsurance of the MONY Life Insurance Company of America business was $370 million.
"We are delighted to announce the closing of our 47th insurance acquisition transaction," said John Johns, Protective's chairman, president and CEO. "The seasoned, stable and high-quality block of policies we have acquired in the transaction should produce immediate accretion to both our return on equity and earnings per share and provide a solid stream of earnings for many years to come.
“Our ability to consummate a transaction of this size and complexity once again highlights the value and strength of our industry-leading acquisition capabilities."
Protective plans to service the acquired business using the existing workforce and administrative platform based in Syracuse, NY, previously used by AXA to service the business. The benefits provided for in the acquired policies will not be impacted by the transaction.
