Protective to Acquire Lyndon Insurance Group
20 October 1999
Protective to Acquire Lyndon Insurance GroupBIRMINGHAM, Ala., Oct. 20 -- Protective Life Corporation announced today that its principal subsidiary, Protective Life Insurance Company, has agreed to acquire the Lyndon Insurance Group from the Frontier Insurance Group, Inc. for a purchase price of approximately $163.5 million. Lyndon manufactures and markets a variety of specialty insurance products, including credit life insurance, credit disability insurance, and vehicle and marine service agreements. The company distributes products on a national basis through financial institutions and automobile dealers. Lyndon had new premium sales of approximately $165 million in its continuing product lines in 1998 and has total assets of approximately $500 million. Lyndon's home office is in St. Louis, Missouri. Drayton Nabers, Jr., Chairman and Chief Executive Officer of Protective, stated: "We are delighted to add the Lyndon Insurance Group to our Financial Institutions Division. Lyndon will complement and augment our existing credit insurance and service contract businesses and open up new opportunities in other related product lines. The company has an entrepreneurial, growth-oriented culture and a solid management team. We look forward to integrating Lyndon into our existing operations and expect to benefit from increased market presence and economies of scale in the credit insurance business." The transaction is subject to regulatory approval and certain customary closing conditions. Protective Life Corporation provides financial services through the production, distribution and administration of insurance and investment products throughout the United States. It currently has annual revenues of approximately $1.5 billion and assets of $12.5 billion. This release includes "forward-looking statements" which express expectations of future events and/or results. All statements based on future expectations rather than on historical facts are forward-looking statements that involve a number of risks and uncertainties, and the Company cannot give assurance that such statements will prove to be correct. Please refer to Exhibit 99 of the Company's most recent Form 10-Q for more information about factors which could affect future results.