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A.M. Best Comments on Credit Ratings of Assurant, Inc. and Its Subsidiaries


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Edin Imsirovic
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FOR IMMEDIATE RELEASE

OLDWICK - OCTOBER 18, 2017 10:35 AM (EDT)
A.M. Best has commented that the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” of Assurant, Inc. (Assurant) [NYSE:AIZ] (headquartered in New York, NY) and all the Long-Term and Short-Term Issue Credit Ratings assigned to Assurant-issued securities are unchanged following its recent announcement that it has reached a definitive agreement to combine operations with The Warranty Group, Inc. (TWG). Similarly, the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICRs of “a+” of the U.S. property/casualty subsidiaries of Assurant are unchanged by the announcement. Concurrently, the FSR of A- (Excellent) and the Long-Term ICRs of “a-” of the core life/health subsidiaries of Assurant remain unchanged. The outlook of these Credit Ratings (ratings) remains stable.

On Oct. 18, 2017, it was announced that Assurant and TWG have entered into a definitive agreement with TPG Capital for Assurant and TWG to combine operations, with Assurant shareholders retaining majority ownership of the combined company. The transaction is valued at approximately $2.5 billion and is expected to close in the first half of 2018, subject to shareholder and regulatory approvals, and other customary closing conditions.

TWG offers a broad suite of products and services sold through complementary distribution channels including vehicle service contracts, extended service contracts on appliances and electronics. From a strategic standpoint, TWG will allow Assurant to strengthen its position in the vehicle protection business in addition to enhancing its distribution platform.

A.M. Best’s comment takes into consideration the terms of the agreement, the strategic nature of the acquisition, and the potential for synergies and efficiencies to be gained in the future.

A.M. Best will continue to monitor the progress of the transaction, and evaluate any developments and implications for impact on the ratings.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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