Assurant Solutions Announce Acquisition Of Centrepoint

by Stewart Douglas

Story link: Assurant Solutions Announce Acquisition Of Centrepoint

Niche insurance provider Assurant Solutions has today announced it has acquired the assets and trade of Centrepoint Insurance to join the Swansure Group subsidiary it acquired back in July, as part of a wider aggressive expansion plan throughout the UK and Europe.

The announcement today came to the effect that Assurant had made and had an offer for insurer Centrepoint accepted by the major shareholders there which would see it assume the current asset base and infrastructure of the Centrepoint operation which is currently engaged heavily in mortgage PPI and buildings and contents insurance products, with an establish broker network already in place.

The acquisition will see Assurant propelled further forward in the marketplace as a significant player in the intermediary market. Alongside its high profile acquisition of Swansure in July, the move is designed as part of a wider expansion plan through the UK and worldwide divisions of the company within competitive insurance verticals.

The acquisition terms were not publicly disclosed, although the Centrepoint broker network of 4,200 is a formidable asset to acquire. Currently it is thought that Centrepoint collects an average of $10m commission income from its established brokerage network on an annual basis.

Whilst it has been said by Assurant that the geographical reach afforded by the new acquisition is a plus point, it is more likely that Assurant will see the extension of its broker network as a more valuable asset, particularly in light of the opportunities for cross selling and product synergy it will provide across Assurant group brands like Swansure.

The move is expected to be completed over the course of the next few weeks as the Centrepoint operations becomes fully integrated within the Assurant management structure alongside the previous acquisition target Swansure, which has already been responsible for significant growth within the operation.