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Assurant (AIZ) Bolsters Presence With EPG Insurance Buyout

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Assurant (AIZ - Free Report) recently acquired EPG Insurance, Inc. (EPG) for $43 million in cash. The buyout will help the acquirer consolidate its presence in the automotive service contract space.

EPG Insurance is a leading provider of service contracts and insurance. It provides and administers service contract programs for products and services. It sells products and services through its global network of OEMs and OEM-branded dealer partners. Its product portfolio includes extended service contracts, physical damage insurance, guaranteed asset protection, rental tracking, and loss damage waivers.

Assurant has been the primary underwriter of EPG Insurance’s protection products for customers renting, leasing and purchasing equipment in the construction, agriculture, forestry and trucking industries since 2018. EPG Insurance’s policies registered 40% growth since 2018.

Addition of EPG Insurance to Assurant’s portfolio will boost the acquirer’s service contract offerings. Moreover, it extends Assurant’s distribution capabilities to dealers from equipment finance companies. Thus, the acquirer’s commercial equipment segment stands to benefit from the buyout. Meanwhile, Assurant’s expertise positions EPG Insurance’s business well for growth.

The Zacks Rank #3 (Hold) global provider of risk management solutions in the housing and lifestyle markets, has adopted inorganic and organic growth strategies. Recently, it acquired HYLA Mobile in an effort to solidify its position as a leader in trade-in and upgrade programs.

Shares of Assurant have gained 1% year to date against the industry’s decline of 10.4%. Focus on Specialty Property and Casualty and Lifestyle Protection is likely to continue driving its shares.



There have been a host of acquisitions in the insurance space of late, given the significant capital available. Arthur J. Gallagher & Co. (AJG - Free Report) acquired Premier Brokerage Services to boost its life brokerage capabilities in the high-end agent and advisory space. Brown & Brown, Inc. (BRO - Free Report) has inked an agreement to buy the general insurance operating companies of O’Leary Insurances to penetrate into the Irish insurance market. Kemper Corporation (KMPR - Free Report) agreed to acquire American Access Casualty Company and its related captive insurance agency, Newins Insurance Agency Holdings, LLC, and its subsidiaries to strengthen the acquirer’s Specialty Auto segment.

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

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