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Torchmark Corporation Discloses Investments in AIG, Lehman Brothers, Fannie Mae, Freddie Mac and Washington Mutual
MCKINNEY, Texas, Sept. 18 /PRNewswire-FirstCall/ -- Torchmark Corporation (NYSE: TMK) disclosed its investments in American International Group, Lehman Brothers, Fannie Mae, Freddie Mac and Washington Mutual that, based on information currently available, may have sustained some amount of other than temporary impairment. These investments, detailed in the schedule below, total $209 million or 2% of total invested assets. In the unlikely event that the Company determines the entire amount of these investments to be other than temporarily impaired, the after-tax impairment cost would be $136 million. The Company will determine the amount of any impairment charge relating to these securities at September 30, 2008.
The Company also disclosed that it has no derivatives or any other off-balance sheet arrangements with these or any other entities.
Torchmark Corporation Holdings in AIG, Lehman, Washington Mutual, Freddie Mac and Fannie Mae in Millions of Dollars at Amortized Cost as of 8-31-08 Freddie Mac Washington AIG Lehman Fannie Mae Mutual TOTAL Senior Debt $31 $74 -(a) $0 $105 Subordinated debt 75 8 0 19 102 Preferred Stock 0 0 2 0 2 Common Stock 0 0 0 0 0 Total Holdings at Amortized Cost $106 $82 $2 $19 $209 After Tax Exposure $136 (a) Excludes $168 million of senior debt since these securities are not considered as an impairment risk at this time.
Torchmark Corporation is a holding company specializing in life and supplemental health insurance for "middle income" Americans marketed through multiple distribution channels including direct response, and exclusive and independent agencies. Torchmark has several nationally recognized insurance subsidiaries. Globe Life And Accident is a direct-response provider of life insurance known for its administrative efficiencies. American Income Life provides individual life insurance to labor union members. Liberty National Life, one of the oldest traditional life insurers in the Southeast, is the largest life insurer in its home state of Alabama. United American is a consumer-oriented provider of supplemental health insurance.
This presentation may contain forward-looking statements within the meaning of the federal securities laws. These prospective statements reflect management's current expectations, but are not guarantees of future performance. Accordingly, please refer to Torchmark's cautionary statement regarding forward-looking statements, and the business environment in which the Company operates, contained in the Company's Form 10-K for the period ended December 31, 2007, and subsequent Forms 10-Q, on file with the Securities and Exchange Commission, and on the Company's web site at http://www.torchmarkcorp.com/ on the Investor Relations page. Torchmark specifically disclaims any obligation to update or revise any forward-looking statement because of new information, future developments or otherwise.
SOURCE: Torchmark Corporation
CONTACT: Mike Majors of Torchmark Corporation, +1-972-569-3627, fax,
Web site: http://www.torchmarkcorp.com/
Company News On-Call: http://www.prnewswire.com/comp/885425.html
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