NEW YORK (TheStreet) -- Shares of Protective Life Corp. (PL) are up 18% to $69.29 in pre-market trade after Japan's Dai-ichi Life Insurance Co. (DCNSF) agreed to buy the Alabama-based company for $5.7 billion, the largest acquisition by a Japanese insurer, displaying its determination to grow overseas to counter weak prospects at home, the Wall Street Journal reports.
Dai-ichi Life, Japan's second-largest private-sector life insurer, said it will issue up to 250 billion yen ($2.4 billion) in new shares to help finance the widely expected purchase of Protective Life.
The Japanese insurer will retain existing management, which booked premiums and policy fees of $2.98 billion and net income of $393 million in 2013, the Journal said.
TheStreet Ratings team rates PROTECTIVE LIFE CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PROTECTIVE LIFE CORP (PL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, notable return on equity and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow."