NEW YORK, Sept. 29 /PRNewswire-FirstCall/ -- Assurant, Inc. ('Assurant') (NYSE: AIZ), a premier provider of specialized insurance and insurance-related products and services, today announced that it has completed its acquisition of the Warranty Management Group business from GE Consumer & Industrial, a unit of General Electric (NYSE: GE). The acquisition was completed on September 26, 2008. As part of the agreement, Assurant also entered into a new 10-year agreement to market extended warranties and service contracts on GE-branded major appliances in the United States.
In 2003, Assurant Solutions and GE, two respected leaders in the extended service contract market, entered into an alliance whereby Assurant offered extended warranties directly to GE appliance purchasers and through leading retailers for consumer electronics, computers, appliances and other goods and services. Assurant will also assume full responsibility for operating the extended warranty business it previously co-managed and shared with GE. In addition, GE Factory Service Technicians will continue to provide in-home service on the Assurant extended warranties sold with GE appliances.
Assurant paid GE $140 million in cash for the sale, transfer, and conveyance of certain assets and will assume certain liabilities. As part of the transaction, GE paid Assurant $115 million in cash for the assumption of certain obligations.
Assurant expects that the acquisition will be accretive to earnings in 2009. Assurant has provided the underwriting in its existing partnership with GE. Therefore, the acquisition will not change Assurant's reported premiums.
Robert B. Pollock, Assurant's president and chief executive officer, said: 'We're pleased to have completed this transaction with GE as we continue to diversify our specialty business by deploying capital in areas where we see good growth potential, such as the extended service contract market.'
Extended service contracts and extended warranties provide consumers with peace of mind by protecting them from untimely problems associated with big-ticket purchases. Assurant Solutions, part of Assurant, Inc. (NYSE: AIZ) provides service plans through more than 10,000 retail stores in the United States. Its programs cover a wide range of products, including home appliances, consumer electronics, motor vehicles, fitness equipment, furniture, jewelry, lawn and garden equipment, personal computers and wireless and mobile devices.
About Assurant Solutions and Assurant, Inc.