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Nationwide Completes Provident Acquisition

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NU Online News Service, Oct. 1, 8:08 p.m. – Nationwide Financial Services Inc., Columbus, Ohio, says it has completed a previously announced $1.1 billion sponsored demutualization and acquisition of Provident Mutual Life Insurance Company, Berwyn, Pa.

Nationwide Financial has named Gary McMahan, former head of distribution development at Massachusetts Mutual Life Insurance Company, Springfield, Mass., to run Provident as a Nationwide Financial subsidiary.

Provident, formerly a policyholder-owned mutual insurer, reported last week that there was some doubt about whether it would go ahead with the deal, even though 93% of the votes cast by its eligible policyholders supported the transaction.

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Nationwide paid for the acquisition with a combination of cash, policy credits and Nationwide Financial common stock.

A decline in Nationwide Financial’s share price since the acquisition agreement was negotiated triggered a provision giving Provident the right to walk away from the deal, Provident said.