Ameriprise Financial AMP, +0.53% today announced it had signed a definitive agreement with a subsidiary of Madison, Wisconsin-based American Family Insurance Mutual Holding Company (American Family Insurance) for the sale of Ameriprise Auto & Home (AAH), a commercial enterprise unit of Ameriprise Financial based in De Pere, Wisconsin. Ameriprise will get hold of gross proceeds of $1.05 billion in coins. After a fee to an affinity partner, the net proceeds are about $950 million, difficulty to certain post-final economic adjustments. Both corporations are dedicated to executing a smooth transition for partners, policyholders, personnel and other stakeholders. Current AAH customers will hold their policies and not using a trade in coverage or carrier.
Ameriprise made the selection to pursue a sale following a formerly disclosed strategic review of the AAH business, and the organization determined that now’s the proper time to exit this commercial enterprise. The transaction is constant with Ameriprise’s diplomatic recognition on its average increase regions of Advice & Wealth Management and Asset Management.
“We are proud of the fantastic value and award-triumphing service we’ve provided to Auto & Home policyholders over the past several many years, and we sincerely thank every and every worker for his or her determination and contributions,” stated Jim Cracchiolo, Chairman, and CEO of Ameriprise Financial. “This transaction is regular with our approach to develop our much less capital in depth organizations and is predicted to lessen our risk profile and boom capital flexibility. Given the American Family’s economic strength and recognition for satisfactory merchandise and purchaser care, we’re pleased to attain this settlement and feel assured that we will be leaving the commercial enterprise in precise stead.”
The Ameriprise Auto & Home felony entities are being sold, and there can be no contingent liability associated with this transaction for Ameriprise Financial except for certain post-closing financial adjustments and customary indemnification obligations in a transaction of this type. The operation is a problem to normal conditions and regulatory approvals and is anticipated to close within the second 1/2 of 2019.
Credit Suisse Securities (USA) LLC acted as monetary advisor and Skadden, Arps, Slate, Meagher & Flom LLP worked as felony consultant to Ameriprise within the transaction.
About Ameriprise Financial
At Ameriprise Financial, we have been helping humans sense confident about their economic destiny for more than one hundred twenty years. With comprehensive asset management, advisory and coverage abilities and a national network of about 10,000 financial advisors, we have the electricity and information to serve the full variety of character and institutional investors’ monetary wishes.
About American Family Insurance
Madison, Wisconsin-based American Family Insurance organization, is the state’s 13th-largest belongings/casualty coverage organization and ranks No. 311 on the Fortune 500 listing. The enterprise sells American Family-emblem products, including car, owners, life, business, and farm/ranch insurance, more often than not thru its one-of-a-kind impartial contractor sellers in 19 states. American Family affiliates (The General and Homesite) additionally provide alternatives for clients who need to manipulate their insurance topics immediately over the internet or through the phone. Affiliate Main Street America sells insurance merchandise via unbiased agents.
This press release includes, and certain oral statements made through our representatives once in a while may comprise, forward-looking statements that reflect management’s plans, estimates, and ideals. Actual consequences ought to fluctuate materially from those defined in those forward-looking statements. The phrases “trust,” “expect,” “count on,” “intend,” “plan,” “will,” “might also,” “ought to”, “may want to”, “could,” “probably,” “forecast,” “undertaking” or comparable expressions are supposed to pick out ahead-searching statements however are not the extraordinary means of identifying such statements. Forward-searching statements are a problem to risks and uncertainties, that may purpose real effects to differ materially from such statements. Such elements consist of, however, aren’t limited to: the incidence of any event, change or circumstance that would supply upward thrust to the termination of the acquisition settlement with American Family; the lack of ability to complete the proposed sale due to the failure to meet the conditions to the closing of the proposed transaction, which includes that a governmental entity may also restrict, put off or refuse to provide acclaim for the consummation of the proposed sale; uncertainty as to the timing crowning glory of the proposed deal; dangers that the proposed transaction disrupts contemporary plans and operations; and trendy monetary and political factors. Management cautions that the preceding list of elements is not exhaustive. There may also be other dangers that management is not able to are expecting right now that could motive real consequences to differ materially from those in these forward-looking statements. Readers are counseled not to vicinity undue reliance on these forward-looking statements, which talk best as of the date on which they are made.