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PennCorp buys Ill. insurer
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November 15, 1996: 12:29 p.m. ET
Washington National acquired in $400 million in cash-and-stock deal
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NEW YORK (CNNfn) -- PennCorp. Financial Group Inc. on Friday said it has signed a definitive agreement to buy Washington National Corp. Both companies sell life insurance.
Holders of Washington National, based in Lincolnshire, Ill., will get $29.50 per share in the $400 million cash-and-stock deal.
The total purchase price could drop by up to $3 million depending on how much Washington National gets for selling its commercial mortgage portfolio, the companies said.
The acquisition is the latest sign of consolidation in the U.S. life insurance market as insurers grapple with lackluster sales of once highly profitable conventional life policies
Washington National's two main divisions are Washington National Insurance Co. which writes disability policies for the educational market, and United Prudential Life, which writes universal life insurance policies.
"We are excited about adding these two quality insurance operations into PennCorp," company chairman David J. Stone said in a statement.
The deal will improve access to the target middle market, boost cross-marketing opportunities and provide significant consolidation savings, Stone said.
As part of the deal, two Washington National board members will be named to New York-based PennCorp's board of directors. 
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