Assurant Acquires Safeco Financial Institution Solutions, Inc.
May 01 2006 - 10:14AM
PR Newswire (US)
Company Strengthens Its Leadership Position in Specialty Property
Segment NEW YORK and SEATTLE, May 1 /PRNewswire-FirstCall/ --
Assurant, Inc. ("Assurant") (NYSE:AIZ), a premier provider of
specialty insurance and insurance-related products and services,
announced today it has acquired all of the outstanding capital
stock of Safeco Financial Institution Solutions, Inc. ("Safeco
FIS"), a California corporation and indirect subsidiary of Safeco
Corporation (NASDAQ:SAFC). Financial terms of the transaction were
not disclosed. Safeco FIS is the fourth largest provider of
creditor-placed homeowners insurance and direct tracking services
for mortgage lenders and servicers nationwide. Safeco FIS will
become part of Assurant's Specialty Property business segment. In
addition to Safeco FIS's approximate $140 million in annual
premiums and fees, the acquisition will add complementary
distribution and administrative capabilities to Assurant's
Specialty Property business. In connection with the closing of the
transaction, Assurant also entered into a reinsurance agreement
with certain Safeco insurance companies. Robert B. Pollock,
Assurant's president and chief executive officer said: "We are very
excited about the addition of Safeco FIS to our Assurant Specialty
Property business. This transaction strengthens our market leading
position in the creditor-placed homeowners market. We believe this
is an excellent deployment of shareholder capital that will assure
long-term profitable growth in our business." John Owen, president
and chief executive officer, Assurant Specialty Property, said:
"Safeco FIS aligns well with Assurant Specialty Property's core
capabilities and growth objectives. The combined strength and
capabilities of these two market leaders will benefit both
companies' clients enabling Assurant Specialty Property to meet a
wide range of needs in the creditor-placed homeowners tracking and
outsourcing arena." Integration of the Safeco FIS operation into
Assurant Specialty Property will begin immediately. "Our businesses
are very similar and we share a common customer-centered focus. The
addition of Safeco FIS further strengthens our talented team.
Together, we are committed to making this transition seamless to
the client," said Gene Mergelmeyer, president of Assurant Specialty
Property's Lending Solutions business. "Safeco FIS is pleased to be
joining Assurant," said Mike Campbell, president of Safeco FIS.
"Our customer-focused approach and technological innovation aligns
well with Assurant's business model and will allow us to serve
lenders more efficiently and effectively." Assurant is financing
the transaction through existing cash resources and expects that
the transaction will not be material to its financial position or
results of operations. About Safeco Corporation Safeco, in business
since 1923, is a Fortune 500 property and casualty insurance
company based in Seattle. The company sells insurance to drivers,
home owners and owners of small- and mid-sized businesses through a
national network of independent agents and brokers. About Assurant
Assurant is a premier provider of specialized insurance products
and related services in North America and selected other markets.
Its five key businesses -- Assurant Employee Benefits; Assurant
Health; Assurant Preneed; Assurant Specialty Property; and Assurant
Solutions -- have partnered with clients who are leaders in their
industries and have built leadership positions in a number of
specialty insurance market segments in the U.S. and selected
international markets. Assurant, which is traded on the New York
Stock Exchange under the symbol AIZ, has over $20 billion in assets
and $7 billion in annual revenue. http://www.assurant.com/ About
Assurant Specialty Property Assurant Specialty Property companies
are leading providers of creditor-placed homeowners insurance,
collateral protection programs and related outsourcing services.
They develop, underwrite, market and administer specialty property
and personal lines of insurance through collaborative relationships
with leading home mortgage companies, manufactured home builders
and dealers, auto finance companies, property management companies
and managing general agents. Assurant Specialty Property serves
clients and their customers in all 50 states and the District of
Columbia. Assurant Specialty Property is aligned with leaders in
every market it serves. It has strong, long-term relationships with
six of the nation's ten largest mortgage lenders and servicers
(based on servicing volume) and four of the seven largest
manufactured housing builders (based on number of homes built).
DATASOURCE: Assurant, Inc. CONTACT: Media: Drew Guthrie, Manager,
Communications and Media Relations, +1-212-859-7002, Fax:
+1-212-859-5893, , or Investor Relations: Melissa Kivett, Vice
President, Investor Relations, +1-212-859-7029, Fax:
+1-212-859-5893, , or Larry Cains, Senior Vice President, Investor
Relations, +1-212-859-7045, Fax: +1-212-859-5893, , all of
Assurant, Inc.; or Jim Sykes, Director, Corporate Communications of
Assurant Solutions and Assurant Specialty Property,
+1-770-763-1015, Fax: +1-770-859-4325, ; or Paul Hollie, Public
Relations, +1-206-545-3048, , or Neal Fuller, Investor Relations,
+1-206-545-5537, , both of Safeco Web site:
http://www.assurant.com/
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