Protective Life Corp. (NYSE: PL) agreed to acquire Mony Life Insurance Corp., the U.S. unit of French insurer Axa SA (EPA:CS) that consists of old insurance policies, for $1.1 billion.
The deal, announced late April 10, is slated to close by Oct. 1.
Not included in the sale to Protective are several Mony Life subsidiaries — MLOA, U.S. Financial Life Insurance Co., Mony International Holdings LLC and MONY Financial Services Inc. — which will instead remain a part of Axa's portfolio.
Paris-based Axa purchased Mony Life for $1.5 billion in 2004, but has since scaled back on its presence in the North American market. In 2011, it sold its Canadian business as part of a plan to expand in emerging markets. On April 4, it made good on that promise and spent approximately $19.3 million for the Singapore subsidiary of HSBC Holdings plc.
Meanwhile, Birmingham, Ala.-based Protective Life expects Mony Life to increase earnings per share by 15 cents in 2013, up to 65 cents in 2014 and 75 cents in 2015.
Protective Life and Axa aren’t the only companies looking to pick up assets in the insurance sector. Genstar Capital LLC has also remained active as a buyer. In November, it sold insurance company Confie Seguros, which it helped grow with a total of 38 add-on acquisitions. The San Francisco private equity firm followed that up with the acquisition of Acrisure, a Grand Rapids, Mich. retail insurance brokerage company, in March.
AXA hired Morgan Stanley in 2012 to help sell the assets, while Willkie Farr & Gallagher LLP and Barclays plc served as buy-side advisers to Protective.