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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A
(Rule 14A-101)
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
(Amendment No. __)
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Preliminary Proxy Statement |
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Definitive Proxy Statement |
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Soliciting Material under Rule 14a-12 |
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AMERUS GROUP CO.
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(Name of Registrant as Specified in Its Charter)
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(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)
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Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. |
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(1) Title of each class of securities to which transaction applies: |
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(2) Aggregate number of securities to which transaction applies: |
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(3) Per unit price or other underlying value of transaction computed pursuant to Exchange
Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it
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(4) Proposed maximum aggregate value of transaction: |
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Act Rule 0-11(a)(2) and identify the filing for which the
offsetting fee was paid previously. Identify the previous filing
by registration statement number, or the form or schedule and the
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(1) Amount Previously Paid: |
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Filed by: AmerUs Group Co.
Pursuant to Rule 14a-12
under the Securities Exchange Act of 1934
Subject Company: AmerUs Group Co.
Commission File No. 001-15166
On July 13, 2006, AmerUs Group Co. posted the following document on its internal website, which
provided answers to questions posed by employees, policyowners and sales agents of AmerUs Group Co.
with respect to the Agreement and Plan of Merger, dated July 12, 2006, by and among Aviva plc,
Libra Acquisition Corporation, and AmerUs Group Co.
QUESTIONS AND ANSWERS
TRANSACTION
Q1: How did this deal come about? Were the companies discussing it earlier in the year, as was
rumored?
A: Background details on the transaction will be fully disclosed in the proxy statement sent to
shareholders. Aviva viewed AmerUs as a strategic opportunity to quickly expand their presence in
the U.S. market.
Q2: Hasnt top management at AmerUs said that our philosophy is to operate so we can continue
independently. Did something change?
A: The AmerUs board has always been focused on shareholder value and considers opportunities to
enhance value, including mergers and acquisitions. This transaction clearly represents an
opportunity both to maximize shareholder value and to fulfill our vision of building a greater
future for our organization.
Q3: Did AmerUs pursue other potential bidders?
A: No. AmerUs was not actively shopping the company for potential acquirers. When the Aviva
proposal was received, the board, which was assisted by independent financial advisors, concluded
this transaction was in the best interests of our shareholders.
Q4: What would happen if another company wanted to submit an offer to acquire AmerUs?
A: The AmerUs board of directors unanimously supports the transaction proposed by Aviva. If an
alternative offer is received, the board would consider the offer consistent with its fiduciary
duties under applicable law and the terms of the merger agreement and determine an appropriate
course of action.
Q5. What is the breakup fee?
A. Approximately $90 million.
Q6: Will AmerUs stock continue to be traded after the transaction has been completed?
A: No. AmerUs Group will be delisted by the New York Stock Exchange following the close of this
transaction.
Q7: Will Aviva stock be traded on a US stock exchange (e.g. New York Stock Exchange) after the
transaction has been completed?
A: No. This transaction will not result in Aviva plc stock becoming listed on any US stock
exchange. Aviva plc is already traded on the London Stock Exchange (LSE: AV). Any action to list
Aviva on a US exchange would be completely independent of this transaction.
Q8: Which companies are involved in the merger?
A: An indirect subsidiary of Aviva will merge with and into AmerUs Group Co. and AmerUs Group Co.
(including all of its subsidiaries) will be the surviving corporation.
Q9: Will the AmerUs companies change their names?
A: Not at this time. However, as part of the long-term branding strategy company names will likely
change in the future. Adoption of the Aviva brand by AmerUs is viewed as a very positive part of
this transaction.
Q10: How will our ratings be impacted by the transaction?
A: We have held preliminary conversations with the various rating agencies to discuss the details
of the transaction. Each rating agency will need to study the transaction to make a final
determination, but we are confident that the financial strength of Aviva will be viewed positively
by the rating agencies.
Q11: Who has to approve the merger?
A: In addition to the boards approval, our shareholders and various governmental and regulatory
approvals are required.
Q12: What would happen if we didnt receive the necessary approvals?
A: The board unanimously approved the proposed transaction and expects to receive approvals from
shareholders and state regulators. However, if for some reason the approval wasnt received,
AmerUs would expect to continue its history of growth and profitability as a standalone entity.
Q13: Why is the transaction being paid in cash and not stock?
A: These were the terms agreed upon with Aviva and the board considered the terms to be in the best
interests of AmerUs shareholders.
Q14: With the company doing so well and with prospects so good based on demographic trends that
favor the markets where AmerUs is strongest, why sell now?
A: We agree that the company has performed well and that our prospects for the future are
excellent. We believe this is reflected in the terms of the offer from Aviva that the board has
accepted. The combination of AmerUs and Aviva provides both organizations with greater growth
opportunities in the U.S. market than either organization could have achieved on their own.
Q15: Is the current litigation facing the company impacting our decision to be acquired by Aviva?
A: No.
Q16: How much will top management make as a result of this acquisition?
A: Details about compensation to named executives will be included as part of the proxy information
sent to all shareholders about this transaction. Top management will receive the same share price
for the stock that they own as any other shareholder.
EMPLOYEE
Q17: Why should employees consider this transaction to be good deal for them?
A: The acquisition of AmerUs by Aviva is expected to provide employees with substantially greater
growth opportunities than each company individually could offer. Aviva has also made a commitment
to continue offering competitive compensation and benefit programs to employees. Avivas decision
to locate their U.S. headquarters in Des Moines also demonstrates their confidence in the ability
of AmerUs to efficiently process the expected growth in business.
Q18: What happens to employees compensation and benefits?
A. For a period for 24 months following the closing there will be no significant changes,
in the aggregate, to our employee compensation and benefit programs. The programs will be reviewed
during this period of time with the intent of synchronizing the Aviva USA and AmerUs programs.
Both companies currently offer competitive pay and benefit programs and plan to continue to do so.
Please remember that in the ordinary course of business AmerUs evaluates compensation
administration and benefit plan programs on an annual basis in order to remain competitive and
manage costs. As a result, changes comparable to those that have occurred in the past can be
expected to also take place in 2007.
Q19: Are any jobs being consolidated or eliminated because of the acquisition?
A: Yes. There will be some redundancies when the two organizations are merged together. As we
work on the integration plans well review areas where we have redundancies and will determine how
to achieve the best operating structure. Where redundancies exist, we will use the best practices
available, and consolidate activities where it makes good business sense. It is too early to know
what specific areas may be affected or the number of positions impacted. It is important to note
that we are planning for increased levels of growth, so job opportunities will be created as part
of that growth.
Q20: Why was Des Moines selected as the location for the US headquarters?
A: The corporate headquarters for AmerUs Group and several of its subsidiaries are already located
in Des Moines. The efficient operating platform at AmerUs provides a strong foundation for the
future growth of the new organization. In addition, Des Moines provides an attractive cost
environment and due to the large number of insurance companies with operations in Des Moines, a
large portion of the workforce is insurance-knowledgeable.
Q21: What will happen to Aviva employees in Boston and AmerUs employees in New York, Indianapolis
and Topeka if the US headquarters are to be located in Des Moines?
A: Specific plans havent been developed at this time. Integration teams will be formed in the
near future to review processes, determine best practices and help design the most efficient and
effective organization. During this process the business functions of each location will be
carefully reviewed. Some changes, including job losses, are likely to occur in every location,
including Des Moines. It is our plan to have many of the key decisions made and ready to announce
when the transaction closes, which is currently expected to by the end of 2006.
Q22: How will selection decisions be made in determining which employees will be offered positions
in the new organization?
A: Once the new organizational structure has been developed, the number, type and location of
positions will be determined. The next step will be to formally assess the skills, experience and
capabilities of employees to determine those most qualified for the open positions.
Q23: How much notice will employees receive if their job is being eliminated?
A: If a position is being eliminated as a result of the integration process, we will endeavor to
provide impacted employees with a minimum of 30-days written notice.
Q24: Are severance packages going to be offered?
A: Yes, we will be responsive to the needs of affected employees and provide various severance and
transition benefits consistent with those offered by AmerUs in the past.
Q25: When will employees receive cash for the AmerUs stock held in their retirement plans?
A: The AmerUs stock in employees retirement programs will be converted to cash shortly after close
of the transaction. Employees will then have the opportunity to reallocate the proceeds from the
sale of their AmerUs stock into any of the other investment choices available in those plans.
Q26: What are the tax implications to employees as a result of the cash payouts of any AmerUs Group
stock held as a personal investment or in a retirement plan?
A: We expect the details on tax implications to be contained as part of the proxy statement to be
sent to shareholders later this year. Shareholders should consult with their own tax advisor to
determine how this transaction impacts their individual situation.
Q27: What should employees be doing differently until the transaction closes?
A: All employees should continue doing their jobs in providing exemplary service to our customers
and producers. The anticipated closing date is not until the end of the year and it is critical
that we all stay focused on the important business mission of AmerUs. As part of the integration
process there will be an early evaluation of special projects that are underway or scheduled to
start soon (e.g. operational integration initiatives at AmerUs) to determine what changes, if any,
should be made to the scope or timing of those initiatives.
Q28: What areas of the organization will be affected by this acquisition?
A: The integration teams will be reviewing every area of the organization to look for opportunities
to improve service, reduce expenses and build a scalable platform for growth. Once decisions have
been made, they will be communicated to employees.
Q29: What are the expected cost savings from the acquisition?
A: Aviva has announced that they expect $45 million in annual pre-tax cost savings from the
combined organization. The integration teams will be asked to identify those areas where expense
savings opportunities appear to exist.
Q30: In what areas of the company do you foresee growth and additional employees being added?
A: The integration teams will be asked to identify those areas in the combined organization where
additional employees will be needed to support the aggressive growth we anticipate as a result of
this transaction.
Q31: How can employees continue to ask questions in the future about the transaction?
A: While the details havent been completed, we will provide employees with a means to anonymously
submit questions about the transaction. Management will respond to the questions received through
periodic Q&A publications posted on AmerUsToday.
POLICYOWNERS
Q32: What will happen to my policy provisions and policy values?
A: Nothing. None of the terms and conditions will change. The calculation of policy benefits and
values will continue as they have in the past assuming that the policyowner continues to pay
premiums and comply with other contractual obligations.
Q33: Does this mean that my insurance company will change or that the level of financial security
will diminish?
A: No. While it is possible that the names of our insurance companies may change to reflect the
Aviva brand, the insurance company that issued your policy will remain the same. The financial
strength and credit ratings of Aviva should serve to improve the overall financial security of your
policy for the long-term.
Q34: Where do I go now for questions or service issues about my policies?
A: You should continue to either contact your agent or any of the existing AmerUs locations.
Q35: If I own AmerUs stock as a result of the demutualization of either AmerUs or Indianapolis
Life, what do I need to do?
A: AmerUs shareholders will be contacted directly with detailed information describing the proposed
transaction, including instructions on how to vote on the acquisition. Your rights as a
policyowner are not impacted in any way based on whether or not you are also an AmerUs Group
shareholder.
Q36: Where can I find out more information about Aviva?
A: A great deal of information about Aviva plc can be found on the internet at www.aviva.com.
AGENTS
Q37: Does Aviva support the concept of multiple distribution channels?
A: Absolutely. Our distribution channels and their past track record for profitable growth were
key factors that attracted Aviva to AmerUs. The strength of the combined organization should serve
to accelerate growth within each of the existing channels, plus there may be opportunities to
consider additional distribution channels.
Q38: How will the proposed transaction impact our commission and compensation programs?
A: There are no plans to change existing compensation programs. Aviva and AmerUs have always
offered competitive compensation levels to their producers and there is no reason to believe that
this philosophy will not continue.
Q39: What changes will there be as a result of naming Des Moines as the headquarters for Avivas US
operations?
A: Details arent available at this time. Integration teams will be formed in the near future to
help design the most efficient and effective organization for delivery of high-value products and
services to our producers and customers. During that process each location will be carefully
reviewed to determine what role it will play in the new organization. While changes are likely to
occur in every location, including Des Moines, those changes will be made with the intent of
building a scalable organization that is focused on growth while delivering even higher levels of
service.
Q40: What impact will this transaction have on my customers?
A: There will be no changes to the contracts with our policyowners. They should benefit from the
increased levels of financial strength and creditworthiness of Aviva. Over time, as the new
organization becomes fully developed, it is possible that some customers may experience a change in
where their policies are serviced. However, the level of service they receive should remain the
same or improve. Company names may also change over time to reflect the Aviva brand, but this will
not impact any of the terms and conditions of their policies or contracts.
Q41: How will the product portfolio change as a result of this combination?
A: Aviva is obviously very excited about the indexed products currently offered by AmerUs and hopes
to continue expanding and refining that portfolio. During the next few months we will be reviewing
the products that Aviva USA currently offers to determine if there are any opportunities for
additional product offerings to be extended to AmerUs producers.
Q42: Will the management of the AmerUs distribution channels remain the same?
A: Yes. Gary McPhail and Mark Heitz will remain in charge of the individual life and annuity
distribution channels, respectively, for Avivas US operations. No changes are contemplated to the
marketing teams who have been supporting your efforts in the field.
Q43: Why should agents view this as a good deal for them?
A: As an existing AmerUs agent, you are already enjoying the products, compensation and service
provided through AmerUs. Aviva acquired AmerUs as a platform for substantial growth in the US and
we expect their actions to support that goal. Their financial strength, higher ratings and brand
recognition should assist you in attracting and retaining customers. The synergies we will realize
as a combined organization should provide agents with even more reasons to place their business
with the new Aviva USA.
Q44: Will you rebrand AmerUs products under the Aviva name?
A: Yes, we expect over time to transition our products to a new brand. Aviva has successfully
established its brand in many markets and we fully expect it will do so in the US market. Aviva
has the financial resources and experience to develop a strong and trusted brand in the US, which
will help agents in attracting new customers.
Additional Information and Where to Find It
This communication may be deemed to be solicitation material in respect of the proposed acquisition
of AmerUs Group Co. by Aviva plc. In connection with the proposed acquisition, AmerUs Group will
file with or furnish to the Securities and Exchange Commission all relevant materials, including a
proxy statement on Schedule 14A. SECURITY HOLDERS OF AMERUS GROUP ARE URGED TO READ ALL RELEVANT
DOCUMENTS FILED WITH OR FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING AMERUS
GROUPS PROXY STATEMENT WHEN IT BECOMES AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION
ABOUT THE PROPOSED TRANSACTION. Security holders may obtain a free copy of the proxy statement,
when it becomes available, and other documents filed or furnished by AmerUs Group at the Securities
and Exchange Commissions web site at www.sec.gov. In addition, free copies of the proxy
statement (when it becomes available) and other documents will also be available on AmerUs Groups
website at www.amerus.com. The proxy statement and other relevant documents may also be obtained
for free from AmerUs Group by directing such request to Investor Relations, AmerUs Group, PO Box
1555, Des Moines, Iowa 50306-1555. The contents of the websites referenced above are not deemed to
be incorporated by reference into the proxy statement.
Participants in Solicitation
AmerUs Group and its directors, executive officers and certain other members of its management and
employees may be deemed to be participants in the solicitation of proxies from its shareholders in
connection with the proposed transaction. Information regarding the interests of such directors
and executive officers is included in AmerUs Groups Proxy Statement for its 2006 Annual Meeting of
Shareholders filed with the Securities and Exchange Commission on March 29, 2006, and information
concerning all of AmerUs Groups participants in the solicitation will be included in the proxy
statement relating to the proposed transaction when it becomes available. Each of these documents
is, or will be, available free of charge at the Securities and Exchange Commissions web site at
www.sec.gov and from AmerUs Group at www.amerus.com or by directing such request to the address
provided in the section above.
Cautionary Statement Regarding Forward-Looking Statements
This document contains statements which constitute forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, which include words such as anticipate,
believe, plan, estimate, expect, intend, and other similar and related expressions.
Forward-looking statements are made based upon managements current expectations and beliefs
concerning future developments and their potential effects on AmerUs Group. Such forward-looking
statements are not guarantees of future events. Actual results may differ materially from those
contemplated by the forward-looking statements due to, among others, the following factors: (1)
the shareholders of AmerUs Group may not approve and adopt the merger agreement and the
transactions contemplated by the merger agreement at the special shareholder meeting; (2) the
parties may be unable to obtain governmental and regulatory approvals required for the merger, or
required governmental and regulatory approvals may delay the merger or result in the imposition of
conditions that could cause the parties to abandon the merger; (3) the parties may be unable to
complete the merger because, among other reasons, conditions to the closing of the merger may not
be satisfied or waived; or (4) other factors that may be referred to in AmerUs Groups reports
filed with or furnished to the Securities and Exchange Commission from time to time. There can be
no assurance that other factors not currently anticipated by AmerUs Group will not materially and
adversely affect future events. Security holders are cautioned not to place undue reliance on any
forward-looking statements made by AmerUs Group or on its behalf. Forward-looking statements speak
only as of the date the statement was made. AmerUs Group undertakes no obligation to update or
revise any forward-looking statement.