BY Fraser Tennant
In a transaction valued at $2.35bn, Prudential Financial is to acquire Assurance IQ – a direct-to-consumer platform that transforms the buying experience for individuals seeking personalised health and financial wellness solutions.
Prudential plans to use a combination of its current cash, debt financing and equity to fund the acquisition, which is expected to close early in the fourth quarter of 2019.
A financial wellness leader and premier active global investment manager with more than $1 trillion in assets under management, Prudential has operations in the US, Asia, Europe and Latin America. Its board of directors has unanimously approved the deal to acquire Assurance’s technology-driven, on-demand service platform.
“Assurance was founded to protect and improve the personal and financial health of every individual,” said Michael Rowell, co-founder and chief executive of Assurance. “Prudential’s shared vision, coupled with the strength of its offering and capabilities, make it the ideal partner with which to begin our next chapter. We are excited to create an ecosystem that reaches more people and new markets with a more expansive suite of products to drive our combined growth.”
Launched in 2016, Assurance uses advanced data analytics to match buyers with customised solutions spanning life, health, Medicare and auto insurance, giving them options to purchase entirely online or with the help of a technology-assisted live agent.
Assurance also matches consumers with the live agent or specific sales process that is best suited to their needs, resulting in better customer outcomes that drive higher levels of engagement and conversion.
“Assurance accelerates the strategy and growth potential of Prudential’s financial wellness businesses, bringing us closer to more people across the entire socio-economic spectrum to better serve the full picture of their needs,” said Charles Lowrey, chairman and chief executive of Prudential. “We look forward to working with Mike Rowell and his entire team to grow the Assurance business in the U.S., and, over time, to extend its unique approach to customers around the world.”
In addition to enhancing the growth of Prudential’s financial wellness businesses, the acquisition of Assurance is expected to generate cost savings of $50m to $100m.