AM Best Maintains Under Review with Developing Implications Status for Credit Ratings of Certain Assurant, Inc.’s Life Subsidiaries

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has maintained the under review with developing implications status for the Financial Strength Ratings (FSR) of A- (Excellent) and the Long Term Issuer Credit Ratings (Long-Term ICR) of “a-” of American Memorial Life Insurance Company (American Memorial) (Rapid City, SD) and Assurant Life of Canada (ALOC) (Toronto, Canada). Concurrently, AM Best has maintained the under review with developing implications status for the FSR of B++ (Good) and the Long Term ICRs of “bbb” of Union Security Insurance Company (USIC) (Topeka, KS) and Union Security Life Insurance Company of New York (USLICNY) (Fayetteville, NY). These companies are subsidiaries of Assurant, Inc. (Assurant) [NYSE: AIZ].

The continuation of the under review with developing implications status reflects Assurant’s announcement on March 9, 2021, that it has entered into a definitive agreement to sell its preneed business and related entities and assets to CUNA Mutual Group. The purchase price is approximately $1.3 billion (approximately $1.2 billion of net proceeds). Among the entities included in the sale are: American Memorial; ALOC and USIC. However, USLICNY is not part of the transaction and will be retained by Assurant. The sale is expected to close by the end of the third quarter 2021. Assurant intends to return 75% of the net proceeds to shareholders through buybacks within 12 months of closing subject to board approval. The remaining 25% of the proceeds are expected to be used to fund investments, including acquisitions to enhance Assurant’s Connected world business and specialty property & casualty offerings.

The sale of this business will allow Assurant to focus on opportunities within its broader lifestyle and housing portfolio. Currently, the organization is a leader in the pre-funded funeral insurance and other preneed solutions in the United States and Canada. AM Best will continue to monitor these companies and their ratings are expected to remain under review pending the conclusion of the sale of the business to CUNA Mutual Group.

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