Dai-ichi Life Insurance acquires Protective Life for US$5.7 billion

05 June 2014   Category: News, Asia, Global, Japan, USA   By Asia Asset Management

Japanese mutual insurance company Dai-ichi Life Insurance has struck a deal to acquire all outstanding shares in New York-listed financial services provider Protective Life Corporation for US$5.7 billion.

The transaction will make Dai-ichi the 13th largest global insurer, with total assets of $424 billion. Protective will become Dai-ichi Life’s platform for growth in the US, where the former does not currently have a physical operational presence.

Protective's president and chief executive officer John D Johns and the present management team will continue to lead the business from the firm’s current headquarters.

"We are pleased to be entering the US life insurance market by bringing such an outstanding company as Protective into our portfolio. With a strong leadership team, vibrant and growing retail franchise and long track record of profitable growth organically and through the acquisition and integration of attractive businesses, Protective is the ideal platform for expansion,” said Koichiro Watanabe, president of Dai-ichi Life. “

Mr. Johns added: "This transaction will enable Protective to deliver substantial, immediate cash value to our shareholders while maintaining our mission and continuing on our growth trajectory. Dai-ichi Life and Protective are both committed to ensuring the financial success of customers, shareholders, distribution partners and employees. This transaction is a testament to the talent, dedication and excellent execution by the Protective employees and management team, and we are thrilled to be combining with such a prestigious, financially strong company as Dai-ichi Life."

The transaction, which has been approved by both companies’ boards of directors, is expected to close by the end of 2014 or early 2015, subject to Protective stockholders' consent, regulatory approvals in Japan and the US, and other customary closing conditions.