Torchmark Corporation of McKinney announced in a press release that it signed an agreement to acquire Family Heritage Life Insurance Company of America, a privately held supplemental health insurance provider.
Founded in 1989 and headquartered in Cleveland, Ohio, Family Heritage is a specialty insurer focused primarily on selling individual supplemental health insurance products with a return-of-premium feature. Family Heritage has approximately 1,200 sales agents, 41 sales directors and over 223,000 policies in force.
"We are excited about the addition of Family Heritage to the Torchmark family," Torchmark co-CEOs Gary Coleman and Larry Hutchison said in the news release. "This transaction meets the criteria we established when we began looking at possible acquisitions several years ago. Family Heritage offers protection-oriented insurance to middle income families through a captive agency force that we believe we can help grow.
"The Company has a track record of solid premium growth and strong underwriting margins with a business plan that incorporates a variable-cost marketing structure. We expect a seamless transition, as we have complete confidence in the Family Heritage management team, agents and employees. We look forward to welcoming all of them to Torchmark."
Torchmark expects the transaction to add about 1 to 3 cents to net operating earnings per share in 2012 and approximately 13 to 17 cents per share in 2013.