CUNA making $1.3 billion acquisition
Funeral financial plans won’t be offered at banks
Madison-based financial services company CUNA Mutual Group said Tuesday that it is acquiring Assurant’s prearranged funeral insurance and final expense business in the U.S. and Canada for $1.3 billion.
“Prearranged funeral insurance, also known as pre-need, and senior lifestyle protection solutions are designed to help ease the emotional and financial burdens of consumers and their families related to planning for the later chapters of life,” CUNA said in a statement.
The deal will allow CUNA to reach more potential customers, the company said.
“This acquisition allows us to expand the ways we reach middle market consumers, helping more people make financial decisions that work for them and their situation,” said Robert N. Trunzo, CUNA president and CEO, in the statement. “We will continue to build, buy and create partnerships to bring additional insurance, investment, and technology solutions into our portfolio to support our strategic priorities, protect even more consumers and augment our resources and financial strength.”
The acquired business will continue to operate at its Rapid City, South Dakota, location “with limited integration into CUNA Mutual Group’s other business lines or operations,” according to the statement.
“Since pre-need solutions are provided to consumers primarily through funeral homes, the company has no plans at this time to offer these services through financial institutions, such as credit unions and banks,” according to the CUNA statement.
The agreement also includes a multiyear extension of the 23-year automobile mechanical repair coverage partnership between the two companies.
The acquisition is expected to close by the end of the third quarter, subject to applicable regulatory approvals.
Trunzo added, “CUNA Mutual Group remains committed to helping credit unions and other strategic partners excel at reaching and addressing consumers’ needs. Ultimately, we are working to ensure a brighter financial future is accessible to everyone.”
CUNA Mutual Group is an insurance, investment and financial services company.
Assurant describes itself as “a leading global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases.”