ATLANTA and LONDON, October 1, 2007—Assurant Solutions, a leading provider and administrator of niche insurance protection products in North America, Latin America and Europe, announced today that its affiliate in the United Kingdom has acquired Centrepoint Insurance Services Limited (Centrepoint), a leading distributor of buildings and contents and mortgage payment protection insurance to financial intermediaries in the U.K.
The acquisition of Centrepoint, along with the previously announced acquisition in July of Swansure Group, another leading mortgage market intermediary, accelerates Assurant Solutions' growth in the U.K. mortgage market and establishes it as a leader in the U.K. intermediary market.
Assurant Solutions is part of Assurant, Inc. (NYSE: AIZ), a premier provider of specialty insurance products and related services in North America and selected international markets.
"Our acquisitions this year illustrate the number one priority of Assurant's disciplined approach to capital management: investing in our businesses for long-term profitable growth," said J. Kerry Clayton, Assurant's interim president and chief executive officer. "So far this year, we have invested over US$100 million in acquisitions for our businesses worldwide."
Assurant is financing the acquisition of privately held Centrepoint through existing cash resources. Terms were not disclosed. The transaction is expected to dilute earnings per share (EPS) by less than 1 percent in 2008 and is expected to be accretive to EPS beginning in 2010. Centrepoint currently generates approximately US$10 million in annual commission and fee income through its 4,200 mortgage-broker network.
"Through this acquisition we are now a leading mortgage intermediary, which will help accelerate our growth in the U.K.," said Ian Moffatt, managing director, Assurant Solutions U.K. and Ireland. "We plan to leverage synergies of Centrepoint and Swansure to grow our mortgage product portfolio, our distribution, and our geographic footprint in the U.K. The combination of these two strong mortgage intermediaries enhances quality service for our customers and further strengthens our management capabilities."
Lee Titcumb, Centrepoint's managing director, said: "Centrepoint has achieved remarkable growth over the past seven years. In that time, we have developed a range of flexible products that provide quality cover at a competitive price, together with a reputation for providing outstanding customer service – so there is tremendous synergy between our respective businesses. Becoming part of Assurant Solutions provides our business with a significant opportunity to build upon the success of recent years."
In the U.K., Assurant Solutions specializes in creating insurance products including payment protection insurance, warranty and service contracts, and credit card price and purchase protection. The business works with financial institutions, intermediaries, brokers and retailers to design, develop, underwrite, administer and market these niche insurance lines.
About Assurant Solutions
Assurant Solutions businesses develop, underwrite, market and administer specialty insurance, extended service contracts and other risk management solutions through collaborative relationships with leading financial institutions, retailers, automobile dealers, funeral homes, utilities and other entities. With operations in 22 locations, including executive offices in Atlanta, Ga., Assurant Solutions serves clients and their customers in 11 countries throughout North America, the Caribbean, Latin America and Europe. www.assurantsolutions.com
Assurant Solutions is part of Assurant, a premier provider of specialized insurance products and related services in North America and selected international markets. Its four key businesses - Assurant Solutions, Assurant Specialty Property, Assurant Health and Assurant Employee Benefits - partner with clients who are leaders in their industries and who have built leadership positions in a number of specialty insurance market segments worldwide.
Assurant, a Fortune 500 company and a member of the S&P 500, is traded on the New York Stock Exchange under the symbol AIZ. Assurant has over US$25 billion in assets and US$7 billion in annual revenue. www.assurant.com
Press Contacts:James A. Sykes
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Assurant Solutions
Phone: 770-763-1015
Fax: 770-859-4325
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Drew Guthrie
Manager, Communications
and Media Relations
Phone: 212-859-7002
Fax: 212-859-5893
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Investor Relations:
Melissa Kivett
Senior Vice President
Investor Relations
Phone: 212-859-7029
Fax: 212-859-5893
[email protected]
John Egan
Vice President
Investor Relations
Phone: 212-859-7197
Fax: 212-859-5893
[email protected]