Stone Point Capital has completed its sale of Wayne, Pa.-based wireless handset insurer Signal Holdings LLC to Assurant Inc. (NYSE: AIZ) for $250 million in cash.
Assurant, Inc. (“Assurant”) (NYSE: AIZ), a premier provider of specialty insurance and insurance-related products and services, announced today that it has completed its acquisition of Signal Holdings LLC, a leading provider of wireless handset protection programs and repair services, from Trident II L.P., a private equity fund managed by Stone Point Capital LLC, and Signal Holdings’ management for $250 million in cash.
Signal Holdings, a privately held company headquartered in Wayne, Pa., generates annual revenues of approximately $330 million through servicing extended service contracts for 4.2 million wireless subscribers. The transaction, which was completed earlier today, expands Assurant Solutions’ client portfolio and servicing capabilities in the wireless service contract market. Assurant expects the transaction to be accretive to earnings beginning in 2010.
Assurant Solutions and Signal Holdings have been business partners since 2001 and share the same client base. Assurant has provided underwriting and marketing support with Signal providing the servicing capability to the companies’ shared client base. As a result, Assurant expects that its acquisition of Signal will not change reported gross written premiums but will add approximately $150 million to Assurant Solutions’ revenue.
Robert B. Pollock, Assurant’s president and chief executive officer, said: “We’re very pleased to have completed this acquisition as we seek to increase our market position in this growing segment of the service contract market. It also demonstrates our focus on targeting opportunities which we believe offer good long-term growth potential for our shareholders.”
Assurant is a premier provider of specialized insurance products and related services in North America and selected international markets. Its four key businesses — Assurant Solutions, Assurant Specialty Property, Assurant Health and Assurant Employee Benefits — 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 and a member of the S&P 500, is traded on the New York Stock Exchange under the symbol AIZ. Assurant has more than $26 billion in assets and $8 billion in annual revenue. Assurant has approximately 14,000 employees worldwide and is headquartered in New York’s financial district. www.assurant.com.