MADISON, Wis. –CUNA Mutual Group has agreed to acquire Assurant’s prearranged funeral insurance and final expense business for approximately $1.3 billion. Assurant serves more than two-million consumers in the U.S. and Canada. CUNA Mutual said there are no plans to offer Assurant’s services through credit unions.
According to CUNA Mutual, the investment will enhance its Group’s ability to help “ensure middle market consumers have access to solutions that help build financial stability.”
CUNA Mutual said prearranged funeral insurance, also known as preneed, and senior lifestyle protection solutions are “designed to help ease the emotional and financial burdens of consumers and their families related to planning for the later chapters of life.
CUNA Mutual added that acquiring what it said is Assurant’s best-in-class prearranged funeral insurance and final expense solutions business will enable it to further serve the growing middle market.
Reaching the Middle Market
“This acquisition allows us to expand the ways we reach middle market consumers, helping more people make financial decisions that work for them and their situation,” said Robert N. Trunzo, president and CEO, in a statement. “We will continue to build, buy and create partnerships to bring additional insurance, investment, and technology solutions into our portfolio to support our strategic priorities, protect even more consumers and augment our resources and financial strength.”
CUNA Mutual said Assurant’s preneed business is focused on protecting consumers and their families with simple, easy to understand products.
The company said Assurant will continue to operate with autonomy from its Rapid City, S.D. location with limited integration into CUNA Mutual Group’s other business lines or operations.
“Since preneed solutions are provided to consumers primarily through funeral homes, the company has no plans at this time to offer these services through financial institutions, such as credit unions and banks,” CUNA Mutual said in announcing the acquisition.
Adding Business ‘At Scale’
“The acquisition provides the opportunity to add a business already at scale as CUNA Mutual Group enters new markets to protect even more consumers,” the company stated. “The business brings $6.5 billion of face value in-force. Assurant’s distribution model for preneed and final expense solutions includes a longstanding partnership with the largest funeral home provider in North America and many other funeral home partners and distributors across the U.S. and Canada.”
The agreement includes a multiyear extension of the 23-year automobile mechanical repair coverage partnership between the companies.
The acquisition is expected to close by the end of the third quarter, subject to applicable regulatory approvals and other customary closing conditions.