Assurant, Inc. (NYSE:AIZ) shares were down 0.11% to $85.40 on Wednesday and flat in after-hours trading. The company has a market cap of $5.14 billion at 61.94 million shares outstanding. Shares have been trading in a 52-week range of $64.36 to $89.22.
Assurant Inc is a provider of specialty protection products and related services. Its segments include Assurant Solution, Assurant Specialty Property, Assurant Health and Assurant Employee Benefits and Corporate & Other. Meanwhile, American Title is a leader in title and valuation services for home equity lenders. Its primary business lines include title services, settlement services and valuation for home equity loans, as well as conventional mortgages and refinancing.
With this acquisition, American Title will operate as part of Assurant Inc Mortgage Solutions business, whose capabilities include property preservation, appraisal and valuation services. This way, the company can expand the fee-based business of Assurant Inc, serving the growing home equity market.
American Title is a strong fit with our focus on risk management in the housing market,’ said Global Home, Assurant Inc President Michael Campbell. “As a leader in home equity title and valuation, ATI adds another important dimension to the expansion of our capabilities across the home and mortgage value chain, to more holistically serve our clients.”
American Title is a privately-held company founded in 1994 and acquired by Bill Mackintosh. With his death earlier this year, co-owners Mike Mackintosh and Ashley Horgan have led the business and will continue to do so under the acquisition of Assurant Inc. In addition, Assurant Inc and American Title will work to ensure a seamless transition for employees, clients and customers following the acquisition.
This transaction is projected to cost $45 million and would be accretive to Assurant’s earnings by 2017. The deal is expected to be completed before the end of this year, pending regulatory and shareholder approval.
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