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North Coast Life Insurance Company Signs Non-Binding Letter of Intent With Government Personnel Mutual Life Insurance Company

^{Published on 2010-10-19 11:30:25 - Market Wire}
 

SPOKANE, Wash.--([ BUSINESS WIRE ])--North Coast Life Insurance Company (aNCLa) of Spokane, Washington, (Pink Sheets: NCLI) is pleased to announce that the Company has signed a non-binding letter of intent with Government Personnel Mutual Life Insurance Company (aGPMa) of San Antonio, Texas, with respect to the possible acquisition of NCL by means of (a) a subscription for shares of common stock of the Company by GPM to enable NCL to redeem all of its outstanding shares of Series A Preferred Stock and (b) a statutory merger of a wholly-owned subsidiary of GPM with and into NCL, with NCL being the survivor of the Merger, with the holders of the common stock of NCL being paid cash for their shares. Prior to the merger, all of the existing shares of Class A preferred stock of NCL outstanding would be redeemed by the Company at a redemption price of $10.00 per share, plus accrued and unpaid dividends thereon (whether or not earned or declared). The non-binding letter of intent contemplates that NCL and GPM will work toward the consummation of the transaction by December 31, 2010, subject to the receipt of required regulatory approvals, but extendable, at GPMa™s option, for a period of 90 days thereafter.

aWe look forward to working with GPM Life to complete the merger and ultimately become a part of one of the nationa™s most respected life insurance companies. This is a great opportunity for our stockholders, policyholders, employees and general agents. We look forward to continuing North Coast Life as a subsidiary of GPM Life, and continuing to provide our high quality insurance products through our independent agency force,a stated Robert J. Ogden, President and CEO of North Coast Life Insurance Company.

Forward-looking Statements

This news release contains forward-looking information based on management's best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, North Coast Lifea™s expectations as to closing of the contemplated transaction. Forward-looking information typically contains statements with words such as "hope", "goal", "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. These statements are based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including NCL's perception of historical trends, current conditions and expected future developments as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are as of the date which such statement is made and are subject to a number of known and unknown risks, uncertainties and other factors, which could cause actual results or events to differ materially from future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments, potential downturns in economic conditions generally and an inability of the parties to agree on terms for such transaction. Therefore, actual outcomes may differ materially from those expressed in such forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Other than as may be required by law, North Coast Life disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of such information, future events or otherwise.

For additional information on North Coast Life or its products and services, please visit the Company's website at [ www.nclife.com. ]