Torchmark's (NYSE:TMK) Liberty National Life Insurance said Tuesday it is selling its wholly owned subsidiary United Investors for $316 million.

The price tag, being paid by Protective Life Insurance, a division of Protective Life (NYSE:PL), includes adjusted statutory capital and surplus at closing, totaling $648 million.

Torchmark CEO Mark S. McAndrew said the company is “very pleased” to announce the acquisition.

“While United Investors has been a valuable asset, its primary operations involve lines of business that we no longer emphasize,” he said. “We believe this transaction enhances shareholder value as it will provide additional capital and allow us to focus completely on our core protection life and health insurance business.”

The deal’s close, subject to final negotiations and regulatory approvals, is targeted for December 31.

Protective Life CEO John D. Johns said the deal helps the company leverage its experience in acquiring closed blocks of business and is consistent with its strategy to increase earnings using excess funds from acquisitions.

The acquirer anticipates an initial capital investment of $260 million.