The acquisition of Field Asset Services by Assurant Specialty
Property, a segment of
), did not create a significant reaction among the investors
community. Despite optimism over the current acquisition, share
price inched down 0.3% to close at $54.19 yesterday likely
because of broader market fundamentals.
Field Asset Services, a company specializing in providing
service related to property preservation, restoration and
inspection, has been bought from FirstService Corporation in a
transaction valued $55 million.
Field Asset Services will be known as Assurant Field Asset
Services and will consist of the employees of both Assurant
Property Advantage and Field Asset Services. The buyout will be
slightly accretive to the company's 2014 earnings. The Zacks
Consensus Estimate for 2014 is currently pegged at $5.97,
translating to a year over year improvement of 5.6%. We expect
the estimate to rise as analysts incorporate the accretion in
With its network of more than 25 mortgage servicing, asset
management and investor clients, Field Asset Services is a
perfect compliment for Assurant Specialty Property's field
services business. Via this line of business, Assurant
provides services like property inspection, preservation as well
as repairs to the mortgagers. This service helps in restoration
of values of the mortgaged homes portfolio. Assurant's
field service business was started in 2011 under the name of
Assurant Property Advantage.
Assurant's Specialty Property has shown favorable performance
over the past few quarters, driven by high placement rates and
market share from lender's consolidation. However, the high
margins witnessed by the segment is not expected to be sustained
over the long term led by regulator-mandated price cuts and
improving housing market conditions which will likely lower
We believe this step has been taken by the company in order to
preserve earnings from the segment. Going forward we expect the
segment to introduce additional strategies for long term
Assurant carries a Zacks Rank #4 (Sell). Other players
Eastern Insurance Holdings, Inc.
FBL Financial Group Inc.
) with Zacks Rank #1 (Strong Buy) and
) with Zacks Rank #2 (Buy) are worth investing in.
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