On Dec 31, we issued an updated research report on the U.S. life insurer, Protective Life Corp. (PL).
Protective Life has a long operating history in the U.S., which grew on both organic and inorganic routes. Its inorganic growth story stands quite impressive with 47 small and big acquisitions to its credit over the past four decades.
We appreciate the insurer’s diverse mix of revenues and earnings, significant presence in the life insurance market, multiple distribution channels, manageable cash outflows at the holding company, and a solid track reflecting its competence in acquisitions and collaborations.
This life insurer boasts of solid asset quality, sound capital position and liquidity, and financial flexibility alongside robust enterprise risk management, all of which help drive credit rating agencies to assign it with a strong credit score.
In Jun 2014, the company announced its takeover by the Japanese life insurer Dai-ichi Life Co. Post acquisition, Protective Life will become a wholly-owned subsidiary of Dai-ichi and no longer be listed under any stock exchange.
Last month, the company announced that the transaction is well on track and will likely close on or around Feb 1, 2015. This transaction will enable Protective to deliver substantial, immediate cash value to its shareholders while sustaining growth. Post acquisition, Dai-ichi Life will become the 13th largest global insurer of which Protective Life will be part of. Courtesy the takeover, Protective Life will rise in rank from a medium- to a large-size U.S. insurer as well.
Protective Life currently carries a Zacks Rank #2 (Buy). Equally well-ranked stocks in the industry include Lincoln National Corporation (LNC), StanCorp Financial Group Inc. (SFG) and China Life Insurance Co. Ltd. (LFC).
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