Transaction Overview

Sagicor to Enter U.S. Life Insurance Market

Monday June 6, 9:45 am ET

TAMPA, Fla.--(BUSINESS WIRE)--June 6, 2005--Sagicor USA, Inc. announced today that it has entered into a definitive agreement to acquire American Founders Life, the life operations of Vesta Insurance Group, Inc. (NYSE: VTA - News) for $58.0 million in cash. Sagicor USA, Inc. is a wholly-owned subsidiary of Sagicor Financial Corporation, a Barbados based financial services group. Its life insurance subsidiary, Sagicor Life Inc., is rated 'A' (excellent) by A.M. Best Company.

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Dodridge D. Miller, Sagicor's President and CEO said, "Sagicor has enjoyed great success from its acquisitions which has spurred the company's diversity, capabilities and growth. This acquisition will enable Sagicor to accelerate its growth and develop its capacity to provide life insurance products and services in the United States. Our U.S. expansion efforts are being led by Maxine MacLure, President and CEO of Sagicor USA, Inc., our U.S. subsidiary located in Tampa, Florida."

Maxine MacLure added, "The United States is of keen interest to the Group and we look forward to partnering with the management team and employees of American Founders. Our team believes American Founders is the right platform for our entrance into the U.S. The company, with its exceptional people and service, provides the vehicle for us to achieve our vision of superior growth, service, and results."

Conclusion of the transaction, which is expected in the third quarter of 2005, is subject to a number of customary conditions, including approval by the Texas Department of Insurance as well as approval under the Hart-Scott-Rodino Antitrust Improvements Act.

LMC Capital LLC served as Sagicor's financial advisor in connection with this transaction.

Sagicor Financial Corporation is based in Barbados and has offices in over twenty countries offering products including individual and group life insurance, health insurance, personal property & casualty insurance, and fund management. Sagicor was formed in 1840 as Barbados Mutual Life Assurance Society and completed its demutualization in 2002. Additional information can be obtained by visiting Sagicor's website at www.sagicor.com.

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