SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 2, 1996
PIONEER FINANCIAL SERVICES, INC.
(Exact name of registrant as specified in charter)
Delaware 1-10522 36-2479273
(State of other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1750 East Golf Road, Schaumburg, Illinois 60173
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (847) 995-0400
(Former name or former address, if changed since last report)
Item 5. Other Events.
On August 2, 1996, the registrant issued a press release, a copy of which
is attached as Exhibit 99.1 to this Form 8-K and incorporated herein by
reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit No. Description of Document
99.1 Press release dated August 2, 1996 issued by the
registrant.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
PIONEER FINANCIAL SERVICES, INC.
Date: August 15, 1996 By: /s/ A. Clark Waid, III
A. Clark Waid, III
Exhibit 99.1
FOR MORE INFORMATION, CONTACT
NANCY ZALUD, 847-995-0400 FOR IMMEDIATE RELEASE
PIONEER FINANCIAL SERVICES COMPLETES ACQUISITION
OF WASHINGTON NATIONAL HEALTH INSURANCE BUSINESS
SCHAUMBURG, IL., AUGUST 2, 1996---Pioneer Financial Services, Inc. (NYSE:
PFS), a national health and life insurer, announced it has completed the
acquisition of a block of individual and small group health insurance business
from Washington National Insurance Company (WNIC). This block of business
represents approximately $200 million in annual premium revenue.
The acquisition is structured as a reinsurance transaction. PFS plans to
reinsure the block of business on a 50% quota-share basis. Management believes
the acquisition should begin to contribute to PFS financial results by the
fourth quarter of 1996.
"We believe this acquisition will add to PFS profitability in two ways: 1)
lowering total administrative expense ratios by spreading costs over a larger
premium revenue base and 2) providing us with increased marketing distribution,"
said Peter W. Nauert, chairman of PFS. "We also expect to increase profits on
this business by implementing managed care programs which have been successful
in our current block of medical business."
PFS has already begun administrative consolidation to reduce expenses on the
Washington National block of business. The company plans to maintain the
current service centers in Evanston, Illinois, and Whitewater, Wisconsin.
The Washington National acquisition increases the gross premium revenue base of
PFS' Group Medical Division by approximately 50%. A sales force of
approximately 45,000 agents has been generating about $130 million in annualized
sales for WNIC. This sales force will now affiliate with the PFS organization.
PFS plans to add new product lines to this distribution system to enhance its
marketing potential.
"I am optimistic that this distribution system could eventually yield even
greater ongoing value than the current block of business we have acquired,"
Nauert added.
PFS underwrites and markets health insurance, life insurance and annuities and
provides medical utilization management services throughout the United States.
The company's primary markets for insurance are individuals age 65 and older,
small business owners, self-employed individuals and middle income families.
