Assurant, a provider of specialized insurance and insurance-related products and services, has completed its acquisition of the warranty management group business from GE Consumer & Industrial, a unit of General Electric.
As part of the agreement, Assurant also entered into a new 10-year agreement to market extended warranties and service contracts on GE-branded major appliances in the US.
In 2003, Assurant Solutions and GE entered into an alliance whereby Assurant offered extended warranties directly to GE appliance purchasers and through leading retailers for consumer electronics, computers, appliances and other goods and services. Assurant will also assume full responsibility for operating the extended warranty business it previously co-managed and shared with GE. In addition, GE factory service technicians will continue to provide in-home service on the Assurant extended warranties sold with GE appliances.
Assurant paid GE $140 million in cash for the sale, transfer and conveyance of certain assets and will assume certain liabilities. As part of the transaction, GE paid Assurant $115 million in cash for the assumption of certain obligations.
Robert Pollock, Assurant’s president and CEO, said: We’re pleased to have completed this transaction with GE as we continue to diversify our specialty business by deploying capital in areas where we see good growth potential, such as the extended service contract market.