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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
For more information, contact:
Bill Greiter
Senior Vice President
Fortis, Inc.
(212) 859-7147
Eric Tanzberger Debbie Fisher
Vice President/Investor Relations Director/Investor Relations
Service Corporation International Service Corporation International
(713) 525-7768 (713) 525-9088
FORTIS AND SERVICE CORPORATION INTERNATIONAL AGREE ON TERMS OF SALE OF AMERICAN
MEMORIAL LIFE INSURANCE COMPANY
UTRECHT, THE NETHERLANDS, BRUSSELS BELGIUM, NEW YORK (JULY 27, 2000) - Fortis,
the international insurance, banking and investment group, announced today that
through its U.S. subsidiary, Fortis, Inc., it has signed a definitive agreement
to acquire American Memorial Life Insurance Company ("AMLIC"), the South
Dakota-based prearranged funeral captive insurance company of Service
Corporation International (SCI, NYSE: SRV).
Under terms of the agreement, Fortis will acquire AMLIC in a cash transaction of
$200 million and will enter into a multi-year marketing agreement with SCI to
allow for the sale of prearranged funeral contracts exclusively through
SCI-owned or affiliated funeral homes. This transaction is expected to close in
the fourth quarter, pending customary regulatory approvals.
Preneed funeral insurance allows individuals to prepay for a funeral in a single
payment or in multiple payments over a number of years. The insurance policy
increases in value over time, ensuring that sufficient funds are available to
pay for the funeral at the time of need.
"The acquisition will allow Fortis to continue to expand its preneed market
share and leverage its management expertise within this specialized market
segment," stated Kerry Clayton, Chief Executive Officer and President of Fortis,
Inc. "It demonstrates Fortis' deepened commitment to funeral service and
preneed."
"The addition of AMLIC establishes Fortis' leadership position in the
prearranged funeral insurance market and furthers Fortis' U.S. strategy to
concentrate on a number of
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market segments in which the businesses are striving for leading positions by
offering differentiated products and services," said Clayton.
AMLIC will remain headquartered in Rapid City, South Dakota, and continue its
operations under current management.
"For SCI, the sale of AMLIC represents further execution of its initiatives to
sell certain assets and non-core businesses to generate funds available for the
reduction of SCI's debt. The multi-year marketing agreement with Fortis provides
SCI funeral homes enhanced opportunities and the uninterrupted ability to sell
prearranged funeral contracts in North America," said Robert L. Waltrip,
Chairman and Chief Executive Officer of SCI.
Representatives of both companies agree that this transaction allows each party
to focus on its core business, which benefits the funeral service industry
overall.
Fortis, Inc. is a financial services company that, through its operating
companies and affiliates, provides specialty insurance and investment products
to businesses, associations, financial service organizations and individuals in
the U.S. Fortis, Inc. is part of Fortis, the international insurance, banking
and investment group, with assets at year-end 1999 in excess of $400 billion.
Fortis' listed companies are Fortis (B) of Belgium and Fortis (NL) of the
Netherlands. Fortis (B) securities trade on the Brussels exchange under the
symbol FOR, on the London exchange under the symbol FAG and on the Luxembourg
exchange under the symbol AGF; the securities of Fortis (NL) trade on the
Amsterdam exchange as FOR, the London exchange as AMEV, on the Luxembourg
exchange as AMV and as an ADR (FAMVY) on the NASDAQ `Bulletin Board' in the U.S.
SCI is the largest funeral home and cemetery company in the world. As of June
30, 2000, SCI affiliates operated 3,815 funeral service locations, 580
cemeteries, and 197 crematoria in 20 countries on five continents.
This press release includes forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements are based on
assumptions that Fortis and SCI believe are reasonable. These statements are
not, however, guarantees of future performance and actual results may differ
materially. The most important factors that may cause actual results to differ
from Fortis' and SCI's expectations are the risks associated with the closing of
this transaction reflected by this signed definitive agreement and receipt of
regulatory approval of the transaction.
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