Wednesday 06 April 2016

6 April 2016 - US-based insurer Unum (NYSE: UNM) has entered into a definitive agreement to acquire H/J Capital, LLC, the parent of Starmount Life Insurance Co. and dental and vision benefits company AlwaysCare Benefits, the company said.

Unum, a provider of financial protection benefits at work, including disability, life and supplemental health products, is acquiring Starmount for USD 127m plus net assets.

Starmount covers more than 940,000 lives nationally, manages in-force annualized premium in excess of USD 180m and has access to significant national dental and vision networks.

The company was founded by the Sternberg family in 1983. Starmount is licensed in 49 states and the District of Columbia and markets individual products under the Starmount Life brand, including dental, vision, life and accident.

Its group and voluntary benefits are marketed under the AlwaysCare Benefits brand and include dental, vision, life, disability, critical illness and accident.

Unum said that the transaction will not alter the company's earnings or capital management outlook for 2016, 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 2017.

Starmount will remain headquartered in Baton Rouge, La., with a leadership team including CEO Erich Sternberg and president Deborah Sternberg and the entire staff of more than 220 employees.

Subject to regulatory approvals and customary closing conditions, the transaction is expected to close by the end of 3Q16.

Barclays Capital served as financial advisor and Sutherland Asbill and Brennan LLP as legal advisor to Unum. MTS Health Partners, L.P. served as financial advisor and Bass Berry and Sims PLC served as legal advisor to Starmount.