Protective to Acquire United States Warranty Corp.
BIRMINGHAM, Ala. — Protective Life Corporation (“Protective”) has reached an agreement through its wholly owned subsidiary, Protective Life Insurance Company, to acquire the Pompano Beach, Florida-based USWC Holding Company and its affiliated operating subsidiaries (“USWC” or “Company”) via a stock purchase agreement (the “Acquisition”). The Acquisition is subject to receipt of standard regulatory approvals and satisfaction of customary closing conditions.
USWC, whose primary operating subsidiary is United States Warranty Corp. currently markets vehicle service contracts, GAP coverage and a suite of ancillary automotive maintenance and protection products nationwide. The Company’s marketing footprint and product suite complement Protective’s Asset Protection line of business. The Acquisition is expected to provide the combined entities with expanded market reach, enhanced product and operational capabilities, and higher collective growth potential. USWC will continue to operate from its current Pompano Beach, Florida location and the existing Company leadership and employees will join Protective and continue to manage USWC as part of the transaction.
Richard J. Bielen, Protective’s President and Chief Operating Officer commented, “Under the leadership of Scott Karchunas, our Asset Protection line of business has been performing well and this transaction is a great way to grow the line of business. The two companies both have a history of quality and success, so putting them together creates the potential for the business to grow even stronger and serve more dealerships with these important products. We are pleased to have the USWC team become part of Protective.”
Closing is anticipated to occur on or after November 1, 2016. Upon closing, the acquisition will be counted among a very long and successful track record of acquisitions by Protective that includes 48 life insurance acquisitions and six previous acquisitions in the Asset Protection business segment.
Maynard, Cooper & Gale, P.C. acted as external legal counsel for Protective Life Corporation in this transaction. Sandler O’Neill + Partners, L.P. acted as financial advisor to USWC and Greenspoon Marder, P.A. provided external legal counsel.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →