19 May 2005
Jackson National Life completes purchase of Life of Georgia
Jackson National Life Insurance Company ("JNL"), an indirect wholly-owned subsidiary of Prudential plc, confirms today that it has completed the purchase of Life Insurance Company of Georgia ("LOG") from ING Groep, NV. Details of the purchase agreement were announced on 18 November 2004.
JNL paid £142 million in cash for the business, subject to any post-closing adjustments under the terms of the stock purchase agreement.
| Clare Staley
|| 020 7548 3719
|| Marina Lee-Steere
|| 020 7548 3511
| Joanne Davidson
|| 020 7548 3708
|Jackson National Life
| Tim Padot
|| +1 517 702 2425
Notes to Editors:
- As explained in the announcement of 18 November 2004, the purchase of LOG adds scale to JNL's operating platform and expands its agency distribution. As a result of the transaction, JNL has gained an additional 1.6 million life policies, which doubles the total number of life insurance and annuity policies in force.
- The net increase in the purchase price principally reflects excess capital remaining in the company since the initial transaction announcement partially offset by a lower price for the business resulting from the 2005 earnings retained by the seller.
- The purchase has been fully funded from JNL's internal resources and maintains JNL's capital base.
Jackson National Life
Jackson National Life Insurance Company, headquartered in Lansing, Michigan, is a leading life insurance company in the United States. With over $60 billion in assets (US GAAP), JNL is an industry leader in the areas of fixed, fixed indexed and variable annuities, and also sells life insurance and institutional products. The company markets its products in 49 states and the District of Columbia through independent insurance producers, financial institutions and broker-dealers. In addition, JNL's subsidiary, Jackson National Life Insurance Company of New York, similarly markets products in the state of New York.
As at December 31, 2004, JNL had $61.6 billion (US GAAP) in assets, $53.6 billion (US GAAP) in policy reserves and variable annuity liabilities, more than $3.5 billion (US GAAP) in total revenue, and $630.5 million (US GAAP) in net income.
Life Insurance Company of Georgia
Life Insurance Company of Georgia is headquartered in the United States in Atlanta, Georgia. LOG has long been a well-established life insurance company in Georgia, and currently operates in ten additional states in the southeastern United States – Alabama, Arkansas, Florida, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee and Virginia.
As at December 31, 2004, LOG had $1.9 billion in statutory assets, $1.6 billion in statutory policy reserves, $234.5 million in total statutory revenue, and $8.2 million in statutory net income.
*Jackson National Life Insurance Company is a wholly-owned indirect subsidiary of Prudential plc, a company incorporated and with its principal place of business in the United Kingdom. Prudential plc and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. It has been in existence for over 150 years and has £187 billion in assets under management, as at 31 December 2004. Prudential plc is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America.
This statement may contain certain "forward-looking statements" with respect to certain of Prudential's plans and its current goals and expectations relating to its future financial condition, performance, results, strategy and objectives. Statements containing the words "believes", "intends", "expects", "plans", "seeks" and "anticipates", and words of similar meaning, are forward-looking. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Prudential's control including among other things, UK domestic and global economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, and the performance of financial markets generally; the policies and actions of regulatory authorities, the impact of competition, inflation, and deflation; experience in particular with regard to mortality and morbidity trends, lapse rates and policy renewal rates; the timing, impact and other uncertainties (i) associated with the integration of LOG into JNL, and (ii) of future acquisitions or combinations within relevant industries; and the impact of changes in capital, solvency or accounting standards, and tax and other legislation and regulations in the jurisdictions in which Prudential and its affiliates operate. This may for example result in changes to assumptions used for determining results of operations or re-estimations of reserves for future policy benefits. As a result, Prudential's actual future financial condition, performance and results may differ materially from the plans, goals, and expectations set forth in Prudential's forward-looking statements. Prudential undertakes no obligation to update the forward-looking statements contained in this statement or any other forward-looking statements it may make.