Furthermore, the acquirer has reinsured certain policies of MLOA, as part of an agreement signed between Protective Life and AXA on 10 April 2013.
The MONY purchase price was $686m, subject to customary post-closing adjustments, and the surrendering commission for the reinsurance of the MLOA business stood at $370m.
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The transaction is likely to contribute $0.10 to $0.15 to the Protective Life’s fully diluted earnings per share in 2013, $0.55 to $0.65 in 2014, and $0.65 to $0.75 in 2015, net of integration and transition costs.
Protective chairman, president and CEO John Johns said, "We are delighted to announce the closing of our 47th insurance acquisition transaction."
"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."
Protective Life is considering operating the acquired business through its existing workforce and administrative platform in Syracuse, New York, presently being used by AXA to service the business.
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By GlobalDataWillkie Farr & Gallagher and Barclays served as advisors to Protective and PricewaterhouseCoopers provided tax advisory services.
