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Assurant (AIZ) Buys Remainder of Olivar, Boosts Mobile Solution

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Assurant, Inc. AIZ has acquired the remaining shares in Olivar Co. Ltd. It had made the initial investment four years back. The deal was intended to reinforce its presence in South Korean market and improve the Connected Living business of Assurant.

South Korea-based Olivar is a provider of mobile device lifecycle management and asset disposition.

Through its Global Lifestyle segment, Assurant provides mobile device solutions, and extended service products as well as related services for consumer electronics and appliances, which is referred to as Connected Living. This recent deal will provide support and boost the Connected Living business of Assurant, the global provider of lifestyle and housing solutions.

Moreover, this transaction is expected to widen Assurant’s range of products and services and thus boost this multi-line insurer’s capability to offer an enhanced customer experience, mobile device protection as well as device lifecycle management solutions.

Furthermore, with this deal, Assurant will be able to fortify its presence in the Asia Pacific region and strengthen its global asset disposition services.

The move is in tandem with Assurant's focus on making strategic acquisitions. Assurant partners with leading brands to develop innovative products and services plus deliver an enhanced customer experience. Through partnerships with mobile carriers, Assurant provides administrative services related to its mobile device protection products including customer support and claims handling, service delivery besides repair and logistics among others.

Inorganic Story

The company has adopted inorganic and organic growth strategies to boost Global Lifestyle segment.

In 2020, despite the pandemic, Assurant made strategic acquisitions in Connected Living and Global Automotive businesses. It acquired HYLA, Inc., a provider of smartphone software and trade-in and upgrade services, in December 2020 and American Financial & Automotive Services, Inc., a provider of finance and insurance products and services including vehicle service contracts, guaranteed asset protection insurance and other ancillary products, in May 2020.

The acquisitions are expected to enhance Assurant’s businesses, strengthen its product capabilities and boost customer experience. The acquisitions have added scale and technology capabilities to global trade-in and upgraded business, and boosted its mobile device trading and repair and logistics capabilities in Asia Pacific.

Also, these buyouts have improved Assurant’s connected-home strategy in Japan and enhanced the use of mobile devices, electronics and home appliances.

Price Performance

Shares of this currently Zacks Rank #3 (Hold) multi-line insurer have outperformed the industry in a year’s time. The stock has gained 49.4% compared with the industry’s increase of 39.1%.

Zacks Investment Research
Zacks Investment Research

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You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Acquisitions in the Same Space

There have been a host of acquisitions in the insurance space of late, given significant capital availability. In the ongoing second quarter of 2021, Brown & Brown, Inc. BRO acquired substantially all Piper Jordan assets. Marsh & McLennan Companies, Inc.’s MMC unit Marsh & McLennan Agency LLC (“MMA”) recently acquired PayneWest Insurance, one of the largest independent agencies in the United States. Alleghany Corporation’s Y wholly-owned subsidiary Alleghany Capital Corporation acquired Wilbert, Inc. (WPS).

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Assurant, Inc. (AIZ) : Free Stock Analysis Report

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Brown & Brown, Inc. (BRO) : Free Stock Analysis Report

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