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) June 4, 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 June 4, 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 June 4, 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: June 5, 1996 By: /s/ David I. Vickers
David I. Vickers,
Vice President, Treasurer and
Chief Financial Officer
Exhibit 99.1
PRESS RELEASE
PIONEER TO ACQUIRE HEALTH INSURANCE BUSINESS
FROM WASHINGTON NATIONAL
SCHAUMBURG, IL, JUNE 4, 1996----Pioneer Financial Services, Inc. (NYSE:PFS), a
national health and life insurer, has announced an agreement to purchase all of
the individual and small group health insurance business of Washington National
Insurance Company (WNIC) from Washington National Corporation (NYSE:WNT). This
block of business presently generates approximately $200 million in annualized
premium revenue from policyholders nationwide. WNIC is headquartered in
Illinois and has administrative facilities in Lincolnshire and Evanston,
Illinois, and Whitewater, Wisconsin.
"The synergistic acquisition of WNIC's health insurance business, which is very
similar our Group Medical Division, is consistent with our strategy to acquire
businesses that enhance profitability of our company and can be efficiently
integrated into PFS' existing product lines," said Peter W. Nauert, chairman of
PFS.
PFS' Group Medical Division generated approximately $400 million in premium
revenue in 1995. This acquisition allows PFS to substantially increase its
medical business and increase profits through administrative consolidations
(which provide greater cost efficiencies) and through the implementation of
managed care programs administered through PFS' managed care subsidiaries. The
estimated 250,000 additional insureds also represent excellent prospects for
PFS' cross-selling strategy for additional insurance products.
The acquisition, which is structured as a reinsurance transaction, is subject
to regulatory approval and is expected to close in early August. Management
believes that the transaction should begin to contribute to PFS financial
results by the fourth quarter of 1996, with full effects reflected in 1997.
WNIC policyholder benefits will be honored by PFS' insurance subsidiaries.
PFS plans to continue to work with WNIC's health insurance distribution system
of approximately 30,000 agents throughout the nation, offering insurance
products similar to WNIC's current product lines. PFS expects to broaden the
product lines available to this sales force, adding managed care individual and
small group medical products, EPO (exclusive provide organization) type plans,
consumer-oriented term life insurance products and senior age products including
long term and home health care policies.
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.
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