CUNA Mutual Group Sets $1.3 Billion Acquisition Agreement in Motion
This is the third acquisition announced by CUNA Mutual Group in the past five months.
CUNA Mutual Group announced a $1.3 billion acquisition agreement on Tuesday of Assurant’s prearranged funeral insurance and final expense business.
The Madison, Wis.-based CUNA Mutual Group said this investment will enhance its “ability to help ensure middle market consumers have access to solutions that help build financial stability” and these products will cover millions of consumers in the U.S. and Canada.
Assurant, a Fortune 500 company, provides several insurance products including home, flood, appliance, mobile phone and travel insurance for more than 300 million people around the world. According to the announcement, CUNA Mutual Group’s acquisition will enable the organization to serve the growing middle market with prearranged funeral insurance, also known as preneed, and senior lifestyle protection solutions, which “are designed to help ease the emotional and financial burdens of consumers and their families related to planning for the later chapters of life.”
“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,” Robert N. Trunzo, president/CEO for CUNA Mutual Group, said. “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.”
The preneed business will operate with autonomy at CUNA Mutual Group’s Rapid City, S.D., location with limited integration into its 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,” the announcement stated.
This is the third acquisition announcement by CUNA Mutual Group in the past five months. In October, CUNA Mutual Group’s CMFG Ventures, LLC acquired fintech start-up CuneXus in Santa Rosa, Calif., for an undisclosed amount. In November, CMFG Ventures announced the acquisition of ForeverCar, a Chicago-based start-up that protects vehicle owners from expensive car repairs with “Mechanical Repair Coverage policies delivered through online channels.”
Tuesday’s acquisition agreement is expected to close by the end of the third quarter this year, subject to regulatory approval and other closing conditions.
Assurant President/CEO Alan Colberg said, “Today’s announcement represents a positive outcome for all of our stakeholders and importantly, for our Preneed employees, customers and policyholders. I am also excited to continue to further strengthen our longtime partnership with CUNA Mutual Group, built upon shared values and aligned culture and commitment to customer excellence.”
Trunzo added, “CUNA Mutual Group remains committed to helping credit unions and other strategic partners excel at reaching and addressing consumers’ needs. Ultimately, we are working to ensure a brighter financial future is accessible to everyone.”
According to the statement, the agreement also includes a multi-year extension of the 23-year automobile mechanical repair coverage partnership between the two companies.