About Ameriprise Financial - Ameriprise Auto & Home
Ameriprise Auto & Home Insurance is a De Pere, Wisconsin-based property-casualty insurance provider that primarily sells its products through a partnership with wholesale retailer Costco.
Ameriprise Financial - Ameriprise Auto & Home Headquarter Location
3500 Packerland Dr.
De Pere, Wisconsin, 54115,
Latest Ameriprise Financial - Ameriprise Auto & Home News
Apr 3, 2019
April 3, 2019 Ameriprise Financial is selling its Ameriprise Auto & Home (AAH) division to a subsidiary of Madison, Wisconsin-based American Family Insurance Mutual Holding Co. (American Family Insurance), the companies announced. Ameriprise will receive gross proceeds of $1.05 billion in cash in the deal. After a payment to an affinity partner, the net proceeds are approximately $950 million, subject to certain post-closing financial adjustments. Current AAH customers will retain their policies with no change in coverage or service. Ameriprise Auto & Home is based in De Pere, Wisconsin, and has 1,800 employees. AAH sells auto, homeowners, renters, umbrella and some specialty insurance lines in 43 states and District of Columbia through partners. For 2018, AAH reported $789 million in surplus, $1.8 billion in assets and $1.1 billion of annual direct premium written. Approximately 70 percent of the company’s premium is from auto insurance sales. American Family reported that a significant majority of AAH’s policies are sold through a partnership with Costco, which offers Ameriprise Auto & Home policies to its members through its website. American Family and Costco have entered into a Letter of Intent to continue that partnership. AAH also sells its products through referrals from Ameriprise Financial advisors, a relationship that also will continue after the acquisition. In its media release, Ameriprise Financial said there will 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 transaction is subject to customary conditions and regulatory approvals and is expected to close in the second half of 2019. American Family said the two Wisconsin companies share similar cultures, values and customer focus. The transaction also broadens American Family’s business on a geographic basis. AAH’s largest premium state is California. For 2017, AAH reported direct premium written of $377 million in the state. Of that, more than 80 percent is auto premium. American Family group currently does relatively little business in California, the company said. A multi-line mutual insurance group, American Family Insurance serves customers in 19 states through exclusive agents, and nationally through subsidiaries that sell products through the internet, call centers, affinity partners and independent agents. The group reported 2018 results of $9 billion in equity, $27.5 billion in assets and $9.6 billion of direct premium written. The group employs 12,000 people through its various companies, with American Family-brand products sold through 2,500 independent contractor exclusive agents. Ameriprise Financial said it had conducted strategic review of the AAH business and determined it is the right time to sell. The sale also is consistent with Ameriprise’s strategic focus on its core growth areas: advice and wealth management; and asset management. Credit Suisse Securities (USA) LLC acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to Ameriprise in the transaction. America Family was advised on legal matters by Foley & Lardner and on financial matters by Keefe, Bruyette & Woods, a Stifel Company. Source: Ameriprise Financial Services Inc., American Family Insurance Mutual Holding Co. Was this article valuable?