Ameriprise Financial Announces Agreement to Sell Auto
Ameriprise Financial (NYSE: AMP) these days introduced it has signed a definitive settlement with a subsidiary of Madison, Wisconsin-based American Family Insurance Mutual Holding Company (American Family Insurance) for the sale of Ameriprise Auto & Home (AAH), an enterprise unit of Ameriprise Financial based totally in De Pere, Wisconsin. Ameriprise will acquire gross proceeds of $1.05 billion in cash. After a fee to an affinity associate, the net proceeds are approximately $950 million, difficult to positive submit-ultimate economic changes. Both groups are devoted to executing a smooth transition for companions, policyholders, personnel, and different stakeholders. Current AAH clients will preserve their regulations without a change in insurance or service.
Ameriprise decided to pursue a sale following a formerly disclosed strategic evaluation of the AAH enterprise. The business enterprise decided that now could be an appropriate time to exit this enterprise. The sale is constant with Ameriprise’s strategic cognizance on its middle boom areas of Advice & Wealth Management and Asset Management.
“We are proud of the fantastic cost and award-winning carrier we’ve supplied to Auto & Home policyholders during the last several a long time, and we sincerely thank every worker for their willpower and contributions,” stated Jim Cracchiolo, Chairman and CEO of Ameriprise Financial. “This transaction is regular with our strategy to grow our less capital-in-depth companies and is expected to lessen our chance profile and boom capital flexibility. Given the American Family’s economic power and popularity for nice merchandise and consumer care, we’re pleased to reach this settlement and experience assured that we would be leaving the enterprise in desirable stead.”
The Ameriprise Auto & Home felony entities are being offered. There may be no contingent legal responsibility related to this transaction for Ameriprise Financial except for positive submit-remaining financial changes and commonplace indemnification duties in a sale of this type. The deal is a situation to everyday situations and regulatory approvals and is expected to shut inside the 2d half of 2019.
Credit Suisse Securities (USA) LLC acted as financial guidance, and Skadden, Arps, Slate, Meagher & Flom LLP served as a felony marketing consultant to Ameriprise in the transaction.
About Ameriprise Financial
At Ameriprise Financial, we were helping humans experience confidence about their economic destiny for more significant than a hundred and twenty years. With substantial asset control, advisory, and coverage talents and a nationwide community of approximately 10,000 financial advisors, we’ve got the energy and expertise to serve the whole variety of individual and institutional investors’ monetary needs. For more facts or to locate an Ameriprise financial advisor, go to ameriprise.Com.