Assurant Acquires Green Tree Insurance Agency, Inc.
January 04 2017 - 6:30AM
Business Wire
Acquisition Expands Housing Value Chain,
Broadens Voluntary Insurance Offerings
Assurant, Inc. (NYSE:AIZ), a global provider of risk management
solutions, today announced that it has agreed to acquire Green Tree
Insurance Agency, Inc. from a wholly-owned subsidiary of Walter
Investment Management Corp. (“Walter”) for $125 million in cash
with a potential earnout of up to $25 million, based on future
performance. Green Tree Insurance Agency sells housing protection
products, including voluntary homeowners’ and manufactured housing
policies, and other insurance products. Assurant expects the
transaction to close in the first quarter of 2017, subject to the
satisfaction of customary closing conditions and regulatory
approval, and that the acquisition will have minimal impact to
Assurant’s GAAP earnings in 2017.
“We are building upon the strength of our 30-year history with
Green Tree,” said Alan Colberg, president and chief executive
officer, Assurant. “More importantly, this acquisition enables
Assurant to further its strategic focus in the housing market by
expanding our voluntary offerings, through this distribution
channel, to new and existing clients.”
As of Sept. 30, 2016, Green Tree Insurance Agency and the
affiliated entities Assurant is acquiring in this transaction
reported revenues for the nine months of approximately $31 million.
Assurant currently earns underwriting profits on the majority of
Green Tree’s voluntary homeowners’ and manufactured housing
insurance sales. Through this acquisition, Assurant will retain its
existing book of voluntary insurance for home mortgage borrowers
whose loans are serviced by Walter’s subsidiary, Ditech Financial
Services, and will have the opportunity to write additional
voluntary business for Ditech borrowers. Assurant expects the
acquisition to improve margins on the existing block of business
and generate roughly $25 million of incremental annualized net
earned premium and fee income in 2017, with the opportunity to grow
the business over time.
Green Tree Insurance Agency will be an indirect, wholly-owned
subsidiary of Assurant with offices in Rapid City, SD and St. Paul,
MN.
CAUTIONARY STATEMENT - Some of the statements included in this
news release, particularly statements regarding this acquisition
and future results, may be forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements are based on management's best
estimates, assumptions and projections and are subject to
significant uncertainties. Assurant undertakes no obligation to
update any forward-looking statements in this news release as a
result of new information or future events or developments. For a
detailed discussion of the general risk factors that could affect
our results, please refer to the risk factors identified in our
annual and periodic reports, including but not limited to our 2015
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as
filed with the U.S. Securities and Exchange Commission.
About Assurant
Assurant, Inc. (NYSE: AIZ) is a global provider of risk
management solutions, protecting where consumers live and the goods
they buy. A Fortune 500 company, Assurant focuses on the housing
and lifestyle markets, and is among the market leaders in mobile
device protection; extended service contracts; vehicle protection;
pre-funded funeral insurance; renters insurance; lender-placed
homeowners insurance; and mortgage valuation and field services.
With approximately $30 billion in assets and $6 billion in
annualized revenue as of Sept. 30, 2016, Assurant is located in 16
countries, while its Assurant Foundation works to support and
improve communities. Learn more at assurant.com or on Twitter
@AssurantNews.
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version on businesswire.com: http://www.businesswire.com/news/home/20170104005710/en/
Assurant, Inc.Media:Linda Recupero, 212.859.7005Senior
Vice President, Global
Communicationlinda.recupero@assurant.comorInvestor
Relations:Suzanne Shepherd, 212.859.7062Vice President,
Investor Relationssuzanne.shepherd@assurant.com
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