Torchmark
It had begun marketing to labor unions in the early 1960s. By 1995, Torchmark earnings continued their steady decline, down to US$143 million. On October 1, 1985, it changed names to become First United American Life Insurance Company. In December 1984, R.K.The company also wrote off a US$13 million charge from an aborted marketing agreement with Reader s Digest (NYSE: RDA). In early 2000, value investor Warren Buffett more than tripled his holdings in Torchmark to over 2 million shares. 1994 earnings declined slightly to US$266 million, as the company managed through the 1994 economic soft landing.
When the company later became reorganized as a subsidiary of Torchmark, the dividend payment then continued annually under that parent s name. Globe Life and Accident was formed in 1951 in Oklahoma. In the late 1970s, Liberty National acquired Globe Life and Accident, and formed the holding company, Torchmark Corporation. In 1981, Torchmark acquired United Investors Life Insurance Company. Long-term debt rose to US$298 million, but Torchmark s book value had also risen, to US$800 million.
It expanded into supplemental health insurance for cancer coverage in the 1960s. Liberty National began paying a cash dividend to shareholders in 1933, which it continued to pay without interruption every year since. Torchmark s old economy stock had become undervalued during the late 1990s technology bubble.
Over the next several years during and after the early 2000s bear market, Buffett s investment in Torchmark tripled in value. . By then the company had been added to the S&P 500 Index of the largest publicly-traded companies in the United States. In 1993, Torchmark s earnings reached their intermediate-term peak for the next few years, at US$269 million.
Richey retained his existing position as CEO of Torchmark Corporation, but relinquished his position as President, when he was elected to Chairman. In 1987, earnings came in at US$184 million. Under Torchmark that company was incorporated in Missouri on August 17, 1981.
Its core company, Liberty National, was formed in 1900, and after an acquisition it formed Torchmark as a holding company in the late 1970s. The original core of Torchmark, Liberty National, was founded in 1900 in Birmingham, Alabama. The stock price slid that year by 25% from its prior year high.
Torchmark Corporation (NYSE: TMK) based in McKinney, Texas is an S&P 500 holding company that specializes in life insurance, supplemental health insurance and financial services. The Company was founded in Birmingham, Alabama where it was headquartered until 2006 and where it still maintains its largest operations.
The company s long-term debt by then had grown to US$793 million, but its book value had dropped from 1980s levels, to only 674 million. In 1994 the stock price dropped to only half of its 1982 peak price. In 1994, Torchmark acquired American Income Life Insurance Company.
Richey was promoted to CEO of Torchmark, as well as retaining his position as President for two more years. In July 1985, Torchmark s President and CEO, R.K. It had originally been established in Missouri on September 27, 1961. In April 1982, Ronald K.
Richey became President of Torchmark for the next four years. By 1983, earnings reached over US$90 million, and by then the stock had tripled from its 1970s low. The stock price continued in its low trading range through that year. In 1999, Torchmark earned US$274 million.
Through 1987, Torchmark bought back about 9% of its stock, including 4.5 million shares through January that year. The stock price came close to its 1986 high, but fell victim to the 1987 stock market crash later that year, and ended up near its prior year low by the end of 1987. In 1990, Torchmark s earnings came in at US$204 million.
Richey, also became President of the subisidiary United Investors Management Company, the parent company of United Investors Life. In August 1986, R.K. On December 10, 1984, that subsidiary became licensed and began operating in that state.
However, the company s book value increased to over US$1 billion. However, that included a realized loss of US$72 million from the sale of real estate investments.
The company continued to perform well through the 1990-1991 recession, and by 1991, earnings grew to US$224 million. In 1992, Torchmark split its stock three-for-two, and it reached a new intermediate-term high for the next several years, up nearly 70% from its 1986 peak. Also in 1984, Torchmark issued an adjustable rights preferred stock, which began paying dividends the next year, with an adjustable rate between 7% and 13%. In 1981, Torchmark had incorporated Globe International Life Insurance Company in New York.
That subsidiary company had been founded in 1954 by Bernard Rapoport.
