On 23 January 2018 Unum announced it has entered into a definitive agreement to acquire Pramerica Życie TUiR S, a financial protection provider in Poland, from a subsidiary of Prudential Financial, Inc.
“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 States and United Kingdom. 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.”
The 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.
