Provident, Jefferson-Pilot agree in principle to new corporate partnership

Business Wire, June 6, 1996

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--June 6, 1996--Provident Life and Accident Insurance Co. and Jefferson-Pilot Life Insurance Co. have agreed in principle for Jefferson-Pilot to market Provident's individual disability and voluntary benefits products, effective July 1, 1996.

Under terms of the agreement, Jefferson-Pilot will market Provident's individual disability products and voluntary benefits universal life, interest sensitive whole life, disability income, and cancer insurance policies through its network of more than 15,000 agents and brokers, selling in all states except New York and Maine. Jefferson-Pilot will cease writing its own individual disability and voluntary benefits products on June 30, 1996.

"While both our Individual Health and Mass Marketing lines of business were profitable, they were not a significant part of our overall sales or earnings," said David A. Stonecipher, Jefferson-Pilot's president and chief executive officer. "The decision to discontinue these coverages was dependent on our ability to partner with a company that was committed to those lines of business. Provident represents one of the industry's foremost disability income and voluntary benefits companies. Its products are superior, and the company has the resources to keep its products well ahead of the competition. This new partnership puts Jefferson-Pilot's producers at the forefront of the industry."

Stonecipher said that other factors in Jefferson-Pilot's partnership with Provident are Provident's reengineered field service organization and the company's appointment of dedicated personnel to support the needs of the Jefferson-Pilot field force.

"We are very pleased to have Jefferson-Pilot as a strategic partner in both of these product lines," said J. Harold Chandler, Provident's president and chief executive officer. "As our history shows, forming alliances with quality companies such as Jefferson-Pilot is an important part of Provident's effort to build our core individual and employee benefits businesses and to establish new ways of delivering our products to consumers. We expect this agreement to significantly contribute to our corporate growth objectives."

Provident Life and Accident Insurance Co., founded in 1887, is the primary insurance subsidiary of Provident Companies Inc., a holding company established in 1995. With a year-end 1995 net worth of $1.7 billion and $96 billion in life insurance in force, Provident Companies Inc., through its subsidiaries, specializes in life, disability, annuities, and related insurance products for individuals and corporate customers. Provident Companies Inc. is traded on the New York Stock Exchange under the symbol PVT.

Jefferson-Pilot Insurance Co., a subsidiary of Jefferson-Pilot Corp., was formed in 1987 with the merger of Jefferson Standard Life Insurance Co. and Pilot Life Insurance Co. Jefferson-Pilot and its sister company, Alexander Hamilton Life, hold combined assets of $11.8 billion and have $96 billion of life insurance in force. Jefferson-Pilot Corp. is traded on the New York, Midwest, and Pacific Stock Exchanges under the symbol JP.

CONTACT: Provident

Tom White, 423/755-8996

or

Jefferson-Pilot

Arnie Culbreth, 910/691-3313