Company to Acquire Mayflower National Life Insurance Company from SCI
NEW YORK, December 1, 2006—Assurant, Inc. ("Assurant") (NYSE: AIZ), a premier provider of specialized insurance and insurance-related products and services, announced today that it will extend for three years its exclusive distribution partnership with Service Corporation International ("SCI") (NYSE: SCI) and that it has entered into a definitive agreement to acquire 100% of the outstanding stock of Mayflower National Life Insurance Company ("Mayflower") from SCI.
SCI acquired Mayflower on November 28, 2006 as part of its acquisition of Alderwoods Group, Inc.
Assurant will pay SCI $65 million with available cash. The transactions are expected to close in early 2007 subject to customary regulatory approvals. Assurant expects that its acquisition of Mayflower will be immediately accretive to earnings.
The exclusive distribution agreement, which allows Assurant to distribute its preneed insurance products and services through SCI-owned or affiliated funeral homes in North America, will be extended through September 30, 2013.
Assurant's acquisition of Mayflower, a leading provider of preneed insurance products and services, will add approximately $52 million in annual net earned premiums.
Robert B. Pollock, Assurant's president and chief executive officer, said: "By aligning our preneed operations with our Assurant Solutions business segment we can leverage Assurant Solutions' expertise in managing large distribution partnerships, like our SCI relationship. The extension of our partnership with SCI and the acquisition of Mayflower will enable us to operate more effectively and leverage capabilities within our organization to grow our preneed business, one of our targeted growth areas. Over time, we expect to generate returns consistent with the 14-16% range we've targeted for our Solutions segment."
Tom Ryan, SCI's president and chief executive officer, said: "We look forward to continuing our long-term partnership with Assurant. After combining with Alderwoods, SCI now owns more than 1,600 funeral homes across North America. Extending our relationship with Assurant, a long-trusted partner, is great news for the customers we serve. Together, our products and services provide peace of mind for individuals and their families."
Christopher Reznyk, senior vice president, preneed business leader, Assurant Solutions, said: "The extension of our long-term partnership with SCI and the acquisition of Mayflower illustrate our shared goal of growing the preneed business. All Assurant businesses have a common customer-centered focus. We are committed to making this transition seamless, and we are confident that our approach will enable us to serve SCI's funeral home customers efficiently and effectively."
About Preneed Life Insurance
Preneed life insurance allows individuals to prepay for a funeral in a single payment or in multiple payments over a fixed number of years. The insurance policy proceeds are used to address funeral costs at death.
About Assurant Solutions and Assurant, Inc.
Assurant Solutions businesses develop, underwrite, market and administer specialty insurance, extended service contracts and other risk management solutions through collaborative relationships with leading financial institutions, retailers, automobile dealers, funeral homes, utilities and other entities. With operations in 17 locations, including executive offices in Atlanta, Ga., Assurant Solutions serves clients and their customers in 10 countries throughout North America, the Caribbean, Latin America and Europe. www.assurantsolutions.com
Assurant Solutions is part of Assurant, a premier provider of specialized insurance products and related services in North America and selected international markets. Its four key businesses—Assurant Employee Benefits, Assurant Health, Assurant Solutions and Assurant Specialty Property—have partnered with clients who are leaders in their industries and have built leadership positions in a number of specialty insurance market segments worldwide.
Assurant, a Fortune 500 company, is traded on the New York Stock Exchange under the symbol AIZ. Assurant has more than $20 billion in assets and $7 billion in annual revenue. The Assurant Web site is www.assurant.com.
About Service Corporation International
Service Corporation International (NYSE: SCI), headquartered in Houston, Texas, is North America's leading provider of deathcare products and services. At September 30, 2006 and pro forma for the merger with Alderwoods, SCI owned and operated 1,405 funeral homes, 214 cemeteries, and 234 combination funeral homes and cemeteries in 46 states, eight Canadian provinces, the District of Columbia and Puerto Rico.
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