New York-based insurance company Assurant expands its size and scale within vehicle protection with its $2.5 billion acquisition of The Warranty Group from TPG Capital.
The companies jointly operate across 21 countries, and Assurant President and Chief Executive Alan Colberg said the deal solidifies its “global position” as a provider of vehicle protection services.
As a combined entity, Assurant has the resources to enhance its presence in the Asia-Pacific market and obtains access to new client partnerships and distribution channels, including dealer networks and national accounts. By the end of 2019, Assurant expects to generate $60 million of pre-tax operating synergies by optimizing global operations.
The total enterprise value represents about 10.4 million Assurant shares, or $993 million based on the acquisition agreement closing price, and $1.5 billion in cash, after repayment of TWG’s $596 million of existing debt.
Assurant originally announced the acquisition in October 2017. As part of the transaction agreement, Assurant Inc. will become a wholly owned subsidiary of TWG Holdings Ltd., whose name will change to Assurant Ltd.
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