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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) July 27, 1998
THE LOEWEN GROUP INC.
(Exact name of registrant as specified in its charter)
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<S> <C> <C>
British Columbia, Canada 0-18429 98-0121376
(State or other jurisdiction of (Commission File Number) (IRS Employer Identification No.)
incorporation)
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4126 Norland Avenue, Burnaby, British Columbia V5G 3S8
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code 604-299-9321
N/A
(Former name or former address, if changed since last report)
Exhibit Index is on page 3
Page 1 of 6
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ITEM 5. OTHER EVENTS.
Pursuant to Form 8-K, General Instructions F, registrant hereby incorporates by
reference the press release attached hereto as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
Exhibit No. Description
Exhibit 99 The Loewen Group Inc. Press Release dated July 27, 1998
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.
Dated: July 27, 1998
THE LOEWEN GROUP INC.
By: /s/ BRADLEY D. STAM
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Name: Bradley D. Stam
Title: Senior Vice President, Law
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EXHIBIT INDEX
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Sequential
Number Exhibit Page Number
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99 The Loewen Group Inc. 4
Press Release dated July 27, 1998
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THE LOEWEN GROUP INC
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(NYSE, TSE, ME: LWN) NEWS
Investor Contact:
Chris Hunter, Director, Investor Relations
The Loewen Group Inc.
Tel: (800) 347-7010
Media Contact:
Dave Laundy, Vice President
Corporate Communications
Tel: (604) 293-7857
FOR IMMEDIATE RELEASE
LOEWEN GROUP ANNOUNCES AGREEMENT TO SELL FIRST
CAPITAL LIFE INSURANCE COMPANY OF LOUISIANA
Vancouver, BC, July 27, 1998 - The Loewen Group Inc. announced today it entered
an agreement to sell First Capital Life Insurance Company of Louisiana, for
approximately $24 million. The buyer is Life Re Corporation of Stamford,
Connecticut. The transaction represents the culmination of several months of
negotiation.
The sale, which is subject to certain conditions including insurance regulatory
approvals, is expected to close in the third quarter of 1998.
First Capital Life specializes in the sale of pre-need funeral insurance sold
through non- Loewen Group funeral homes. First Capital has assets of
approximately $88 million and annual premiums of approximately $14 million. The
Loewen Group anticipates a pre-tax gain on the sale of $5-$6 million.
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"First Capital is an excellent pre-need insurance company, but its value to
Loewen's overall insurance strategy is diminishing. Since Loewen funeral homes
directly compete with many of the funeral homes that represent First Capital's
current customer base, First Capital's marketing opportunity will be much
greater under new ownership" said Tom Hardy, President of the Loewen Life
Insurance Group.
Loewen's pre-need life insurance business is now growing rapidly through
Mayflower National Life Insurance Company which Loewen acquired in December
1997. Mayflower serves only Loewen funeral homes, which allows it and its source
of business to share the same strategic objectives. Mayflower is now selling in
four states and expects to be selling in ten states by year end. It is
anticipated that, by the end of the fourth quarter of 1998 Mayflower will
account for approximately 25 percent of the $150 million annual total insurance
volume sold through Loewen funeral homes.
Loewen Group's Chief Financial Officer Paul Wagler said "Loewen Group is adding
substantial economic value to our funeral home and cemetery franchise by selling
pre- need products already developed in our insurance operations. With this
sale, we have disposed of a non-strategic insurance asset and will focus instead
on internal, vertically integrated opportunities to build revenues and profits
without much additional investment. These will contribute increasing profits in
1999 and in future years."
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Note: Certain of the statements contained in this press release, including, but
not limited to, information regarding the future economic performance and
financial condition of the Company, the plans and objectives of the Company's
management, and the Company's assumptions regarding such performance and plans,
are forward-looking in nature. Additional information concerning important
factors that could cause actual results to differ from the forward-looking
information contained in this release is included in the Company's
publicly-filed quarterly and annual reports.
The Loewen Group's website is located at http://www.loewengroup.com
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