Update: Protective Life’s Acquisition of USWC to Expand Market Reach
August 20, 2016 by Renée Kiriluk-Hill
BIRMINGHAM, Ala. – (Corrects the value of the blocks acquired in January in the sixth paragraph.) Protective Life Corp. is acquiring USWC Holding Co., whose primary subsidiary offers finance and insurance products for dealers, lenders and manufacturers. Terms were not disclosed.
The acquisition is expected to provide the companies with expanded market reach, enhanced product and operational capabilities, and higher collective growth potential, Protective said in a statement.
USWC’s primary subsidiary is United States Warranty Crop. Its marketing and products, which include vehicle service contracts and gap coverage, complement Protective’s asset protection line, said Protective.
Mark Macek, president of USWC, said in a statement the two companies share “similar client-centric values and culture. Together with Protective, we expect to be the leader in the finance and insurance segment of the automobile industry, and we’re looking forward to the substantial growth opportunities in the future.”
Protective and USWC said USWC will continue to operate from its Pompano Beach, Florida, headquarters and with existing leadership and other employees.
In January, Protective closed on its acquisition of blocks of in-force term life policies from Genworth Life and Annuity Insurance Co. The company’s initial capital investment was $589 million, a spokeswoman said recently. The transaction was accomplished via reinsurance, and was expected to generate initial capital to Genworth of about $100 million to $150 million. The blocks had been reinsured to Genworth’s River Lake Insurance Co. and River Lake Insurance Company II (Best’s News Service, Jan. 18, 2016).
Protective is a wholly owned subsidiary of Dai-ichi Life Insurance Co. Ltd., which reported a 25% increase in net income on a consolidated basis for the 2015 fiscal year (Best’s News Service, May 17, 2016).
Protective Life Insurance Co. and Dai-ichi Life Insurance Co. Ltd. currently each have a Best’s Financial Strength Rating of A+ (Superior).
(By Renée Kiriluk-Hill, associate editor, BestWeek: Renee.Kiriluk-Hill@ambest.com)
