Estated Blog

Browse by topic:


More from Estated

Assurance IQ sells to Prudential for $3.5B

On 5th September, two years back, Prudential Financial, Inc. reported that it had finalized a conclusive deal to purchase Assurance IQ.

prudential+assurance

The agreement includes a net initial payment of 2.35 billion dollars, including a $1.15 billion cash and stock earn out if Assurance meets its multi-year development targets. 

Transaction details:

  • Assurance provided Prudential's financial wellness enterprises with a vast and speedily developed direct-to-consumer medium, significantly swelling both businesses' potential markets.
  • Both organizations combine their strengths to develop a new all-in-one engagement model for better client satisfaction.
  • Assurance became a fully-owned auxiliary of Prudential's United States Companies branch under the contract terms. Assurance co-founders continued to focus on the company's expansion. Mr. Michael Rowell proceeded to lead Assurance and notify Mr. Sullivan, who joined the company as executive officer on 1st December and another co-founder, Mr. Michael Paulus, continued to lead Assurance.
  • In 2020, the transaction was estimated to be slightly advantageous to Earning Per Share and Return on Equity. In addition to the 500 million dollars of planned profit growth by 2022 stated at Prudential's June Investor Day, the merger was anticipated to provide cost savings between 50 million dollars and 100 million dollars.
  • Prudential intended to finance the purchase with a mix of available cash, debt borrowing, and stock, with the transaction scheduled for completion early in Q4 2019. Prudential's Management board unanimously authorized the acquisition.
  • Prudential Board approved a 500 million dollars growth to its stock buyback sanction for 2019. Consequently, the stock redemption allowance for the whole 12 months of 2019 is 2.5 billion dollars. In the July end, the company had repurchased one billion dollars of its ordinary share in this authorization. Prudential ultimately used this accelerated percentage repurchase authorization at the finish of 2019.

Role of FT Partners:

  • FT Partners performed as sole strategic and monetary counsel to Assurance and its executive committee.
  • This deal highlights FT Partners’ profound area proficiency in the InsurTech industry and flourishing imprint history generating considerably favorable effects for increased evolution of FinTech firms.

About Prudential Financial, Inc.

prudential-site

Prudential Financial, Inc. is a financial health chief and most efficient international funding supervisor with over 1 trillion dollars in property under control as of 30th June 2019.

Prudential’s various and proficient personnel assist in making lives better by developing economic opportunities for more individuals. Prudential Financial reported $15.917 billion in sales for the quarter that ended June 30, 2021, up 31.38 percent YOY.

About Assurance IQ, Inc.

assurance-site

Established in 2016 in Bellevue, Assurance was built to enhance client's private and financial health. The organization uses advanced information analytics to allow a big community of real-time sellers to provide custom-designed solutions throughout a broader socio-financial spectrum.

Assurance offers customers personalized services covering life, health, and auto coverage using a mix of cutting-edge data science with manual competence. It provided the buyer the option to buy completely online or with tech-enabled live human assistance. Assurance's avant-garde model additionally suits purchasers with the real-time agent or particular sales technique, ideal to their requirements, resulting in higher purchaser effects that force better engagement. This technique propped up with the aid of using an ongoing transformation in consumer desires, wherein people start their research for customized monetary offerings digitally. Moreover, people further wanted to consult human professionals to finish their purchase. 

By eliminating the incompetencies of traditional models, Assurance’s tech-driven platform decreases the price of purchaser acquisition, permitting deeper attainment into the mass marketplace even as retaining a multiple degree of solutions and item selection. Its rapid-increase version gives compelling monetary benefits with low capital expenses and necessities that deliver extreme margins and an excessive level of scalability.


Discuss this article.