Entry into Polish market boosts company’s growth strategy
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
Unum
(NYSE:UNM) today announced it has entered into a definitive agreement to
acquire Pramerica Życie TUiR SA (“Pramerica Życie”), a financial
protection provider in Poland, from a subsidiary of Prudential
Financial, Inc. (“PFI”).
“Growth of the Unum franchise through strategic acquisitions is an
important avenue for us,” said Unum President and CEO Rick McKenney.
“The purchase of Pramerica Życie opens an opportunity to expand our
European footprint into Poland, an attractive market for financial
protection benefits. Pramerica Życie is an excellent fit for Unum, with
a shared focus of delivering financial protection to individuals and
families when they need it most.”
Unum is one of the leading providers of employee benefits products and
services, and the largest provider of group and individual disability
income protection insurance in the United States1 and United
Kingdom2.
Pramerica
Życie will remain a standalone business reporting to Unum UK
President and CEO Peter O’Donnell.
“Pramerica Życie is a group and individual risk protection provider with
a strong distribution model and a solid reputation as a trustworthy
provider of high-quality products and professional financial advice,”
O’Donnell said. “I am delighted to welcome the Polish team to Unum, and
look forward to supporting them as they seek to build on their growth
momentum.”
Aneta Podyma-Milczarek, president of Pramerica Życie, said she expects
the financial stability, high quality products, and strong professional
relationships the business has built over the last 20 years will
continue to grow with the new owner.
“Over the past 20 years, Pramerica Życie with our current shareholder
PFI created a successful and highly recognized company in the Polish
market,” Podyma-Milczarek said. “We are proud to become a part of Unum
and look forward to further developing our offering using the extensive
experience and innovative solutions of our new shareholder. Most
important, we will continue to offer our clients protection for what is
most valuable for them: their lives and health.”
Terms of the sale were not disclosed. The transaction is expected to
close by the end of the year, subject to regulatory approvals and
customary closing conditions. It will not alter Unum’s earnings or
capital management outlook for 2018, nor does it change Unum’s overall
capital management strategy of investing in its business while also
returning capital to shareholders through share repurchases and
dividends. It is expected to be neutral to accretive to Unum’s earnings
per share in 2018.
PricewaterhouseCoopers Corporate Finance LLC served as financial advisor
to Unum. Deutsche Bank served as financial advisor to PFI.
ABOUT UNUM GROUP
Unum Group (www.unum.com)
is a leading provider of financial protection benefits in the United
States and the United Kingdom. Its primary businesses are Unum US,
Colonial Life, Starmount and Unum UK. Unum’s portfolio includes
disability, life, accident and critical illness, dental and vision
coverage, which help protect millions of working people and their
families in the event of an illness or injury. Unum also provides
stop-loss coverage to help self-insured employers protect against
unanticipated medical costs. The company reported revenues of $11
billion in 2016, and provided $6.9 billion in benefits.
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ABOUT PRAMERICA ŻYCIE
Pramerica Życie TUiR SA is a group and individual risk protection
provider based in Poland. The scope of coverage in life insurance
products the company offers in Poland is among the most extensive on the
market. Customer focus and care about their trust, side by side with the
highest quality of service, are the company’s competitive advantage.
Pramerica Życie gives customers genuine financial support in their hour
of need, and all along helps them protect what is most important for
them so that they can pursue their goals in life. The company creates a
friendly working environment built on respect, where ambitious and
exceptional people can succeed by developing and realizing their
potential. Core values are the foundation on which, day by day,
Pramerica Życie builds a company that helps customers bring their dreams
to life and addresses their dynamically evolving needs.
Pramerica Życie has been awarded the title of Ethical Company (2016),
Customer Friendly Company (2017) and Friendly Insurance Company (2017).
More information on www.pramerica.pl
Prudential Financial, Inc. of the United States is not affiliated with
Prudential plc. of the United Kingdom.
SAFE HARBOR STATEMENT
Certain information in this press release constitutes “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are those not based on
historical information, but rather relate to our outlook, future
operations, strategies, financial results, or other developments, may
include words such as “expects,” “anticipates,” “intends,” “plans,”
“believes,” “estimates,” and similar expressions, and speak only as of
the date made. These forward-looking statements, including statements
regarding the timing of the closing of the acquisition, are subject to
numerous assumptions, risks, and uncertainties, many of which are beyond
our control. Forward-looking statements involve known and unknown risks
and uncertainties that may cause our actual future results to differ
materially from those projected or contemplated in the forward-looking
statements.
These risks and uncertainties include, but are not limited to, the
satisfaction of the closing conditions for the acquisition, the timing
and receipt of regulatory approval for the acquisition, our ability to
effectively manage growth and our ability to effectively execute and
integrate acquisitions. Given the risks and uncertainties inherent in
forward-looking statements, any of our forward-looking statements could
be incorrect and investors are cautioned not to place undue reliance on
any of our forward-looking statements.
For further discussion of risks and uncertainties which could cause
actual results to differ from those contained in the forward-looking
statements, see Item 1A “Risk Factors” of our annual report on Form 10-K
for the year ended December 31, 2016, and, to the extent applicable, our
subsequent quarterly reports on Form 10-Q. The forward-looking
statements in this press release are being made as of the date of this
press release, and the Company expressly disclaims any obligation to
update or revise any forward-looking statement contained herein, even if
made available on our website or otherwise.
1 LIMRA, “U.S. Group Disability Insurance 2016 Annual Sales
and In Force” (2017), based on inforce premium.
2 Swiss Re, Group Watch 2017 (reporting sales data for
2016), based on inforce premium.
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Unum Group
Investors:
Tom White, 423-294-8996
or
Matt
Barnett, 423-294-7498
or
Media:
Jim Sabourin, 866-750-8686
Source: Unum Group