Moody's affirms Protective Life

Moody's Investors Service said it affirmed the debt ratings of Protective Life Corp. (senior debt at Baa2) and the A2 insurance financial strength rating of its operating subsidiaries following the company's announcement that it had signed a definitive agreement to acquire United Investors Life Insurance Co. (insurer financial strength rating at A3) from Torchmark Corp. (senior debt at Baa1).

Protective's outlook is stable.

The transaction is expected to close in the fourth quarter of 2010, subject to regulatory approval, the agency noted.

Moody's said that Protective's lead life insurance operating company, Protective Life Insurance Co., is expected to purchase United for about $316 million in cash, including about $130 million in capital and surplus.

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