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February 08, 2006 at 03:08 PM
Protective Life Corp. has agreed to acquire a midsize life and annuity unit from JPMorgan Chase & Company for about $1.2 billion.
Protective, Birmingham, Ala., hopes to close on the acquisition for the unit, Chase Insurance Group, Elgin, Ill., by Sept. 30.
Chase, New York, ended up with the insurance operations which include 5 separate stock companies, as a result of acquisitions, including a 2003 acquisition by a bank that is now part of Chase. A major part of the insurance unit previously was owned by Zurich Financial Services Group, Zurich.
Chase Insurance reported $79 million in operating earnings for 2005 on $644 million in revenue, Chase says.
Chase says it is selling the insurance underwriting business because the business is so much smaller than the company’s core banking business.
Chase plans to continue to sell life insurance and annuities without actually underwriting the products, the company says.
