67 WALL STREET, New York - June 10, 2013 - The Wall Street Transcript has just published its Insurance Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Low Profitability and Low Interest Rates - Commercial Line Brokers and Underwriters - Consolidation Trends - Emerging Market Expansion - Analysis Of Personal, Commercial & Reinsurance Subsectors
Companies include: Protective Life Corp. (PL) and many more.
In the following excerpt from the Insurance Report, the Chairman, President and CEO of Protective Life Corporation (PL) discusses company strategy and the outlook for this vital industry:
TWST: What do you believe are the key competitive advantages that differentiate you in the marketplace?
Mr. Johns: I do believe that we have a distinctive, I'd like to think even unique, and certainly differentiated overall business model within the life insurance space. We have a three-pronged franchise for deploying capital that fits together synergistically. I think what really powers the model is the fact that we have a very well-sized retail operation. We're certainly competitive, and we're in most distribution systems. But that's not the only engine of growth that we have within the company. We don't have to live and die exclusively on our ability to compete every day on price in life insurance and annuity sales.
What I mean is that our company has the capacity to generate lots of capital, actually more than we believe we can prudently invest in our retail businesses, even while we're growing them. So we then look to the other ways that we can deploy capital. This includes share repurchase and dividends, as well as our very distinctive and industry-leading acquisitions franchise. So we think there's really power and synergy among having those three different opportunities to deploy capital.
As I say, it gives us a lot of flexibility to grow the retail businesses when conditions are favorable but not feel compelled to maintain market share when market conditions are unfavorable. We've indicated that our long-term goal is to return 50% of our after-tax GAAP earnings to share owners through a combination of share repurchase and dividend; we absolutely achieved that in 2012. We have suspended our share repurchase temporarily as a means of financing in part the MONY transaction, but we do believe we will have the capacity in future periods to resume share repurchase at that level and that will be an even higher level of shares repurchased, because the MONY transaction will actually add a lot of earnings power to the company as well. And then lastly, the...
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