Assurant Shares Hit New Record High

Assurant, a risk management firm, said it has agreed to acquire Green Tree Insurance Agency, a subsidiary of Walter Investment Management, for $125 million in cash.

Shares of Assurant touched a new record high and Walter shares climbed more than 1% in intraday trading. AIZ trades in a new 52-week range of $64.36 to $95.17.

The deal also includes a potential earnout of up to $25 million for an Assurant affiliate based on future performance. Assurant said it expects the deal to close in Q1 and to have minimal impact on 2017 GAAP earnings.

As of Sept. 30, Green Tree Insurance Agency and the affiliated entities Assurant is acquiring reported nine-month revenues of approximately $31 million. Assurant expects the acquisition to improve margins on the existing block of business and to generate roughly $25 million of incremental annualized net earned premium and fee income in 2017.

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