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) January 2, 1997
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 January 2, 1997, 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 January 2, 1997 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: January 6, 1997 By: /s/ David I. Vickers
David I. Vickers, Senior Vice President,
Treasurer and Chief Financial Officer
EXHIBIT 99.1
PIONEER FINANCIAL SERVICES, INC.-1750 GOLF ROAD-SCHAUMBURG, ILLINOIS 60173
PHONE: 847-995-0400- - INVESTOR HOTLINE: 1-800-PFS-8998
FOR MORE INFORMATION, CONTACT FOR IMMEDIATE RELEASE
NANCY ZALUD, 847-995-0400
PIONEER FINANCIAL COMPLETES ACQUISITION
OF SECURA LIFE AND MARKMAN INTERNATIONAL
SCHAUMBURG, IL. JANUARY 2, 1997 - Pioneer Financial Services, Inc.
(NYSE:PFS), a national health and life insurer, today announced the completion
of two previously announced acquisitions, SECURA Life Insurance Company and the
remaining 50% of Markman International. Both acquisitions are designed to
further strengthen the company's marketing and distribution in two of its
principal markets: life insurance and Senior health insurance.
SECURA LIFE ACQUISITION
SECURA Life, which specializes in the sale of term life insurance and cash
burial policies, was acquired by PFS' subsidiary, Manhattan National Life
Insurance Company. Purchase price for the Appleton, Wisconsin, company was
approximately $11.9 million. SECURA Life had an estimated $20 million in gross
annual premium revenue in 1006 and assets of approximately $ 90 million.
Following the acquisition, SECURA Life's approximately 1,400 agents will have
access to the full range of Manhattan National Life term, annuity and universal
life products. SECURA Life will continue to distribute its pre-need cash burial
policies through its network or agents in the upper Midwest states. The
addition of the SECURA Life pre-need product distribution system, which is
already well established, further positions PFS as one of the nation's largest
writers of Senior life insurance products.
MARKMAN INTERNATIONAL ACQUISITION
PFS also has acquired the remaining 50% of Markman International, a company
formed as a 50/50 joint venture in 1995 by Pioneer Life and the Markman Company
to exclusively distribute Pioneer Life's plus-age-65 health and life insurance
products. Markman International was successful in expanding the Pioneer Life
agent force from 18,000 in 1995 to nearly 25,000 in 1996, as well as increasing
sales of long term care and home health care policies. However, level sales of
Medicare supplemental products and specialty health and life products were below
1996 sales expectations.
In order to place increased emphasis on its Senior market division, PFS decided
earlier in 1996 to acquire the remaining 50% of Markman International. With
full ownership, PFS plans to incorporate more of the marketing techniques that
characterize the other PFS distribution systems. In 1997, Pioneer Life
marketing will further strengthen its agent recruiting throughout the nation,
continue emphasis on product development and expand its regional distribution
network.
"The purchase of the balance of Markman International gives us the ability to
further strengthen the presence of Pioneer Life in the Senior market," said
Peter W. Nauert, chairman of PFS. "With this marketing structure, we feel
confident of achieving significant increases in Senior product sales in 1997."
Don Rutherford, senior marketing executive in PFS' Senior Health Division, said,
"Our more aggressive marketing program for 1997 and 1998 includes strengthening
our agent recruiting programs; the introduction of a number of new products,
including long term care, home health care and managed care Medicare supplement
plans; and additional agent incentive programs to reward our highest producing
agents and our more profitable and productive distribution centers. We expect
these initiatives will result in increased sales of approximately 50% over 1996
levels. This ia particularly notable at a time when most of our competitors
have experienced level or declining new business sales." Rutherford was
formerly senior executive officer of Union Bankers Insurance Company.
"The completion of these two acquisitions, in conjunction with our planned
merger with Conseco, Inc. (NYSE:CNC) in the spring of 1997, will bring the
increasing sales momentum of PFS' Senior health and life marketing to Conseco,"
Nauert said. "The increased distribution capabilities as a result of these two
acquisitions will benefit PFS and, in turn, Conseco. This further strengthening
of our Senior market and life insurance division squarely fits Conseco's
objective to become the nation's premier provider of insurance products to the
age 40-plus consumer with leadership in three major product lines: 1)
supplemental health insurance, 2) retirement annuities, and 3) life insurance
products.
"We've received positive responses on our planned merger with Conseco, from
financial publishers, institutional investors and the analysts who have
traditionally followed PFS. We are also delighted with the universally positive
responses we have received from our agents and various distribution systems,"
Nauert said. "We expect PFS' strong distribution, marketing and management
talents, along with the strong revenue and asset base and increasing earnings to
be a strong addition to Conseco.
"In fact, PFS insurance company subsidiaries were placed on financial upgrade
watch by one or more of the leading financial rating agencies based on the
pending merger. We believe this to be indicative of expected future increases
in financial ratings for our insurance companies, as we benefit from the
strength of the Conseco organization. These increased ratings should further
assist us in achieving our increased sales goals for 1997 and 1998," Nauert
said.
PFS underwrites and markets health insurance, life insurance and annuities
throughout the United States. The company's primary markets are individuals age
65 and older, small business owners, self-employed individuals and middle income
families.
