Torchmark to Acquire Family Heritage Life Insurance Company of America for Approximately $218.5M

Torchmark Corporation

announced today that it has signed a definitive agreement to acquire Family Heritage Life Insurance Company of America for approximately $218.5 million, subject to closing adjustments. The transaction will be funded internally with cash from Torchmark's insurance subsidiaries and is expected to be immediately accretive to earnings per share with minimal impact, if any, on Torchmark's free cash flow available for stock repurchases or the RBC ratios of the insurance subsidiaries. The transaction is expected to close early in the fourth quarter of 2012. Family Heritage has approximately 1,200 captive sales agents, 41 sales directors and over 223,000 policies in force. Statutory admitted assets at December 31, 2011 were approximately $488 million, GAAP net income for 2011 was approximately $21 million, and direct premiums written in 2011 were $162 million.