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
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Related links:
http://www.torchmarkcorp.com/
http://www.prnewswire.com/comp/885425.html/
CONTACT:
Mike Majors of Torchmark Corporation,
+1-972-569-3627, fax, +1-972-569-3282, tmkir@torchmarkcorp.com
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