Jun. 4, 2014, 5:50 AM
- In what would be the largest-ever purchase of a foreign company by a Japanese insurer, Dai-ichi Life Insurance is paying about $5.7B, or $70 per share in cash for Protective Life (PL), The price represents a 34% premium to Friday's close, not to mention a significant bump from yesterday's rumored $4.9B price tag.
- The deal comes as Japanese life insurers - facing demographic issues back home - look overseas for expansion, and apparently are willing to pay a premium price to get it. Protective Life CEO John Johns says Dai-ichi management has encouraged the team at Protective to continue to look for acquisitions of smaller U.S. targets.
- Shares +17.5% premarket to $69.
Jun. 2, 2014, 7:31 AM
- "Entering the U.S. market has been a goal of Dai-ichi's for some time, " says an analyst, noting the demographic decline in Japan, and Bloomberg reports the company in talks to buy Protective Life (PL) for around $4.9B. Protective's valuation as of Friday's close was $4.12B
- Funding would be an issue, and Dai-ichi closed 5% lower in Tokyo action amid reports of a massive stock offering.
Apr. 11, 2013, 4:19 AMProtective Life (PL) has agreed to acquire Mony Life Insurance Company from France's AXA (AXAHF.PK) for $1.06B, with the deal forecast to add $0.10-0.15 to Protective Life's EPS in 2013 and $0.55-0.65 in 2014. "This book of business, comprised primarily of life insurance policies written prior to 2004...should produce a steady and predictable stream of earnings for many years to come," says Protective Life CEO John Johns. (PR) (previous) | Comment!
Mar. 27, 2013, 5:51 AMProtective Life Insurance (PL) is reportedly in the lead to buy some of the U.S. life insurance assets of France's Axa (AXAHF.PK) in a transaction that could be worth $1B, or more than a third of Protective's market cap of $2.8B. A deal would help the firm expand beyond its main focus of variable annuity business, which is becoming harder to manage.
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