A little over a year ago, Assurant announced that it planned to exit the health insurance and employee benefits business and shift its focus instead to its housing programs.
Assurant continued in that plan Wednesday, when it announced the acquisition of American Title, a provider of title and valuation services for home equity loans, conventional mortgages, and refinancing.
According to a release from Assurant, American Title will operate as part of Assurant’s mortgage solutions business, which offers property preservation, appraisal and valuation services.
“American Title is a strong fit with our focus on risk management in the housing market,” said Michael Campbell, president, Global Home, Assurant. “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 brings an annualized fee income of approximately $48 million to Assurant, and expands Assurant’s fee-based businesses, and serves the growing home-equity field.
According to Assurant, it is paying $45 million in cash for American Title, with a potential earnout based on future performance. Assurant expects the transaction to be modestly accretive to its earnings in 2017.
American Title was founded in 1994 and acquired in 2004 by Bill Mackintosh, who led the company until his death earlier this year, the companies stated in a release.
After the Assurant acquisition is finalized, American Title’s current owners, Mike Mackintosh and Ashley Horgan, will continue to lead the business as part of Assurant.
“We have the highest regard for the business the Mackintosh family and their team have built in ATI, and we welcome them to Assurant,” Campbell said.
According to Assurant, American Title’s team of approximately 400 professionals will maintain their current offices in Omaha, Nebraska, and Palm Bay, Florida.
Assurant and the American Title team will work to ensure a seamless transition for employees, clients and customers following the acquisition, the companies said.
“Joining with a respected Fortune 500 leader builds on our company’s legacy and brings us greater capabilities and resources,” Mackintosh said. “We’ve always been committed to our clients, our people and the communities where we serve. That won’t change now that we’re part of the broader Assurant team.”