Privately held Swansure, which owns D&D Homecare Limited and Adminicle Limited, is a leading insurance provider in the UK, focusing on the mortgage intermediary market. D&D Homecare designs and distributes a full suite of general insurance products, including mortgage payment protection and buildings and contents insurance.
Adminicle provides a range of insurance administration and outsourcing services, including premium processing and disbursement, policy fulfilment, claims and data processing, and performance reporting.
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. Assurant estimates that its acquisition of Swansure will be modestly accretive to earnings in 2007 and will add approximately $US12 million in annual commission and fee income.
Assurant Solutions is part of Assurant (NYSE: AIZ), a premier provider of specialized insurance products and related services in North America and selected international markets.
"This acquisition represents a significant step forward for Assurant in creating a leading proposition in the UK mortgage market," said Ian Moffatt, managing director, Assurant Solutions UK and Ireland. "The capabilities of the Swansure Group strengthen our position in the intermediary market where we have established a firm foothold and where Swansure has become a well- respected name. The combined expertise of our two companies will benefit our clients and enable us to offer a wider range of products and services to their customers."
Paul Thompson, group chief executive and managing director of D&D Homecare Limited, said: "We have worked with Assurant Solutions for over three years now, and have been impressed by its focus on the consumer as well as its innovative approach. There is a natural synergy between our service ethics. We both place great emphasis on delivering insurance solutions that meet individual customer needs. Becoming part of Assurant Solutions represents an opportunity for our business to grow and our people to flourish."
Thompson will join the Assurant Solutions senior leadership team in the UK. His fellow directors -- David Walker and Brian Price -- will remain in their current positions. Derek Green, chairman of Swansure, has stepped down from that post and has retired. In the UK, 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. -Assurant Solutions
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