In order to consolidate its foothold in Latin America,
) agreed to make $115 million worth of equity investment in Latin
American services assistance provider Iké Asistencia (Iké).
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Iké has major operations in Mexico and in other countries in
Latin America. The first phase of the transaction that is
associated with Iké's Mexico operation has been completed by
Assurant. The second phase related to Iké's operations in other
countries, is expected to close in the first quarter of 2014.
Based in Mexico, Iké Assistencia is the largest independently
owned assistance business and has a large market share in Mexico.
Iké generates annual revenues of over $170 million and has a huge
client base of over 18 million. It primarily offers home
assistance, roadside assistance, mobile, travel and other
The investment is expected to enrich the product portfolio that
is offered by Assurant Solutions, the one of the key business of
Assurant Inc. and will also enhance the multi-line insurer's
client base in Latin America.
With the addition of Iké, which will continue to operate as an
independent services assistance provider, Assurant Solutions will
be able to offer its clients a broader range of products and
The investment in Iké is expected to contribute modestly to
Assurant Inc.'s 2014 earnings. Assurant Inc.'s solutions lines
have already witnessed top-line growth due to its increasing
business, both domestically and internationally, and this
investment promises to drive further growth.
Assurant Inc. presently carries a Zacks Rank #3 (Hold). Some
better-ranked multi-line insurers worth considering include
American International Group, Inc.
CNO Financial Group, Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).