LONDON, UK / ACCESSWIRE / October 20, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Assurant, Inc. (NYSE: AIZ), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=AIZ. The Company announced on October 18, 2017, that it had signed an agreement to acquire The Warranty Group, a portfolio Company of TPG Capital. The transaction is valued at $2.5 billion which includes existing debt. The acquisition will allow Assurant to expand its geographical reach and business across the lucrative global lifestyle market. For immediate access to our complimentary reports, including today's coverage, register for free now at:

http://protraderdaily.com/register/

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on AIZ. Go directly to your stock of interest and access today's free coverage at:

http://protraderdaily.com/optin/?symbol=AIZ

Transaction details

Assurant's offer price of $2.5 billion for the Warranty Group includes $1.9 billion in equity value and existing debts. As per the terms of the agreement, the business of The Warranty Group will be merged with that of Assurant's operations. Following this Assurant, Inc. will become the wholly owned subsidiary of TWG Holdings Limited, which will become Assurant, Ltd.

The shares of Assurant, Inc. will be converted to Assurant, Ltd's shares on a 1:1 basis. Assurant, Inc.'s shareholders would have the controlling stake of 77% in Assurant Ltd. The balance 23% stake would be owned by TPG and its affiliates with an approximate value of $1.5 billion based on the Company's closing price on October 17, 2017. TPG and its affiliates would also be receiving an additional $372 million in cash from Assurant as a part of this transaction.

The deal is expected to close H1 2018 and is subject to receiving approvals from shareholders and regulators as well as other closing conditions.

Way Forward

Once the transaction is completed, Assurant Ltd's shares will be listed on the New York Stock Exchange (NYSE) trade under the ticker "AIZ". Assurant is expected to finance the acquisition as well as existing debt of The Warranty Group using a mix of fresh debt and issuing of preference shares once the deal is completed. The Warranty Group's debt is valued approximately $591 million. Assurant has already put in place a bridge credit of $1 billion.

The current top management Assurant Inc. will continue to helm the business of the merged entity. The Board of Directors of Assurant Ltd will have a total of 15 members which include 12 current directors of Assurant Inc.; Nelson Chai, The Warranty Group's President and CEO; Eric Leathers, Partner TPG Capital; and Peter McGoohan, Principal TPG Capital.

Management comments

Commenting on the acquisition, Alan Colberg, President and CEO of Assurant, said:

"Together, we believe we can deepen our global footprint and accelerate profitable growth in key markets already on Assurant's strategic roadmap, while realizing substantial operating synergies, generating more diversified and predictable earnings and furthering product innovation on a global scale."

Nelson Chai, President and CEO of The Warranty Group, added:

"This transaction brings together two businesses with highly aligned expertise in markets across the world. We believe this combination enhances our ability to offer best-in-class products and services in addition to providing new opportunities to our clients, partners, employees and other key stakeholders."

Eric Leathers, Partner at TPG Capital, stated:

"This strategic partnership is an outstanding outcome for both Assurant and The Warranty Group, positioning the combined Company for continued success."

Benefits of the deal

Assurant expects the acquisition to be marginally accretive to its operating EPS for FY18 on a run-rate basis. From the FY19 onwards, the deal is expected to realize pre-tax annual synergies of approximately $60 million, resulting from the combination of global operations.

The Warranty Group has annualized revenue of more than $1 billion as of June 30, 2017, which will be added to Assurant's post the acquisition. The transaction will allow Assurant to forge ahead in its strategy of growing in the global lifestyle market including its presence in extended-service contracts, vehicle protection, and financial services businesses. The acquisition will not only expand Assurant's product and client portfolio but also its global footprint, especially in the Asia/Pacific region. The Warranty Group's vehicle protection business in the US will not only bring the business of dealer networks and national accounts but also take advantage of opportunities in the auto market viz., digital auto retailers.

About Assurant, Inc.

Assurant is headquartered in New York City and is a leading specialty insurance provider. It is a global leader in risk management solutions and offers protection products and services to safeguard against risks for major purchases like homes, cars, appliances, mobile devices, and funerals.

Assurant has a global presence in over 16 countries with approximately $30 billion in assets as is supported by a global team of 14,500 employees. The Company's annualized revenue as on June 30, 2017, was approximately $6 billion.

About The Warranty Group

Chicago, Illinois based The Warranty Group is one of the world's premier global providers of warranty solutions and related benefits with over 50 years of experience. The Company along with its wholly-owned insurance companies - Virginia Surety Company and London General Insurance - provides underwriting, claims administration, and marketing expertise to some of the world's leading manufacturers, distributors, and retailers of consumer goods, and specialty insurance products and services for financial institutions.

The Company has over $5 billion in assets with operations in more than 35 countries and supported by a team of 1,600 employees.

Last Close Stock Review

On Thursday, October 19, 2017, the stock closed the trading session at $101.14, slightly declining 0.65% from its previous closing price of $101.80. A total volume of 631.91 thousand shares have exchanged hands, which was higher than the 3-month average volume of 395.18 thousand shares. Assurant's stock price rallied 8.43% in the last one month, 6.80% in the past six months, and 20.91% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 8.92%. The stock is trading at a PE ratio of 13.29 and has a dividend yield of 2.10%. The stock currently has a market cap of $5.46 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter-holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily