- \n
- \nAdvances Assurant strategy and sharpens focus on connected world businesses and specialty P&C offerings\n<\/li>\n
- \n75 percent of net proceeds to be returned to shareholders via share repurchases\n<\/li>\n
- \n2021 outlook for go-forward operations driven by earnings growth and disciplined capital management\n<\/li>\n
- \nAssurant to host conference call and webcast today at 8:30 a.m. ET\u00a0\n<\/li>\n<\/ul>\n
NEW YORK–(BUSINESS WIRE<\/a>)–
\nAssurant, Inc. (NYSE:AIZ), a leading global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases, today announced it has entered into a definitive agreement to sell its prearranged funeral insurance and final expense business, Global Preneed, and related legal entities and assets to CUNA Mutual Group, a broad financial services provider, for approximately $1.3 billion in cash. As part of today\u2019s announcement, Assurant also outlined an enhanced capital deployment plan and its outlook for 2021.\n<\/p>\n\n\u201cThis transaction represents a successful outcome for all of our stakeholders, including our Global Preneed employees, clients, partners, policyholders and shareholders,\u201d said Assurant President and CEO Alan Colberg. \u201cThe sale of Global Preneed is another important milestone in our transformation of Assurant, sharpening our focus on our market-leading lifestyle and housing businesses, and better positioning our company to capitalize on future growth opportunities emerging around the connected consumer.\u201d\n<\/p>\n
\nColberg added, \u201cBuilding on our track record of significant capital return, we intend to deploy the majority of net proceeds for share repurchases while at the same time accelerating strategic investments to support continued growth in our connected world and specialty P&C businesses. We believe the strength of our core business, robust cash flows and our disciplined approach to capital management will continue to create significant long-term shareholder value.\u201d\n<\/p>\n
\nThe Global Preneed sale is expected to generate approximately $1.2 billion of net proceeds at closing, which is expected to occur by the end of the third quarter of 2021, subject to regulatory approvals and other customary closing conditions. The company intends to return 75 percent of the net proceeds to shareholders through share repurchases within one year of closing, subject to Board approval. This is in addition to returning $470 million via share repurchases and common stock dividends under the company\u2019s existing three-year, $1.35 billion capital return plan, which is expected to be completed by the end of 2021.\n<\/p>\n
\nThe company intends to invest the remaining transaction proceeds primarily in its connected world businesses, comprising Connected Living, Global Automotive and Multifamily Housing, to support long-term profitable growth and further strengthen its competitive position.\n<\/p>\n
\nBased in Madison, Wisconsin, CUNA Mutual Group protects nearly 30 million consumers, delivering an array of financial and insurance offerings through partners, including Assurant. CUNA Mutual Group has more than $28 billion in assets and carries an A rating from AM Best.\n<\/p>\n
\nWith the sale expected to close later this year, Assurant and CUNA Mutual Group will focus on an orderly transition. Upon closing, Global Preneed will be managed as an independent business with existing Preneed employees remaining at their current locations. Continuing their 23-year partnership, CUNA Mutual Group and Assurant also finalized a multi-year agreement to provide ongoing vehicle service contract support to their customers in connection with the transaction.\n<\/p>\n
\n“This acquisition allows us to expand the ways we reach middle-market consumers, helping more people make financial decisions that work for them,\u201d said Robert N. Trunzo, President and CEO, CUNA Mutual Group. “The Global Preneed business is a true strategic fit for us, further diversifying our product offerings complemented by a strong financial standing with over $7 billion in total assets. We are excited to welcome Global Preneed\u2019s talented employees to our team and to serve even more consumers together.\u201d\n<\/p>\n
\nColberg stated, \u201cI thank every Global Preneed employee for their unwavering dedication to serving our more than two million Global Preneed policyholders. We will work closely with CUNA Mutual Group to ensure a smooth transition for our Preneed employees, clients and partners, while also continuing to deliver exceptional customer service to all policyholders through the completion of this transaction.\u201d\n<\/p>\n
\nGoldman Sachs & Co. LLC served as financial advisor and Debevoise & Plimpton LLP as legal advisor to Assurant. Perella Weinberg Partners served as financial advisor and Foley & Lardner LLP as legal advisor to CUNA Mutual Group.\n<\/p>\n
2020 Adjusted Consolidated Results and 2021 Company Outlook<\/b><\/p>\n
\nBeginning with first quarter 2021, Global Preneed and its related legal entities will be reported as discontinued operations and excluded from Assurant\u2019s net income from continuing operations and net operating income1<\/sup>. As a result, 2020 net operating income, net operating income per diluted share2<\/sup> and Corporate and Other net operating loss3<\/sup> have been adjusted to reflect this change and show a consistent comparison of results as reflected in the table below. All net operating income and net operating income per diluted share references exclude reportable catastrophe losses.\n<\/p>\n
\nReported 2020 net income and net income per diluted share totaled $423.1 million and $6.99, respectively. Reported 2020 Corporate and Other segment net loss attributable to common stockholders totaled $295.9 million.\n<\/p>\n
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