Assurant buys Green Tree Insurance for $125m

Specialty insurer Assurant has agreed acquired Green Tree Insurance Agency from Walter Investment Management for $125 million in cash to expand its housing value chain and voluntary insurance offerings.

Following the deal, which has a potential earn-out of up to $25 million based on future performance, Green Tree becomes an indirect, wholly-owned subsidiary of Assurant with offices in Rapid City, South Dakota and Saint Paul, Minnesota.

Assurant expects to generate nearly $25 million of incremental annualized net earned premium and fee income in 2017 with this transaction.

“We are building upon the strength of our 30-year history with Green Tree,” said Alan Colberg, president and chief executive officer, Assurant.

“More importantly, this acquisition enables Assurant to further its strategic focus in the housing market by expanding our voluntary offerings, through this distribution channel, to new and existing clients.”

The transaction is expected to close in the first quarter of 2017.