Markets
AHT

Financial Sector Update for 01/04/2017: AIZ,WAC,BX,AHT

Top Financial Stocks

JPM +0.05%

BAC +1.29%

WFC -0.12%

C +0.95%

USB +0.47%

Financial stocks were broadly higher again on Wednesday, with the NYSE Financial Sector Index climbing almost 0.9% while financial companies in the S&P 500 Index were adding more than 0.5% in value today.

In company news, Assurant ( AIZ ) climbed to a record high on Wednesday after the specialty insurance company today said it was buying the wholly-owned Green Tree Insurance Agency from Walter Investment Management Corp ( WAC ) for $125 million in cash plus earn-out provisions that could add up to $25 million more to the deal proceeds.

Green Tree and its mortgage insurance affiliates generated around $31.6 million in revenue during the nine months ended Sept. 30, 2016, down from $34.3 million during the same period in 2015. Assurant is expecting the deal will have little impact on its FY17 GAAP earnings but sees the acquisition improving margins on its existing business and producing around $25 million in annualized net earned premium and fee income this year.

The companies expect the transaction to close during the current quarter ending March 31.

AIZ shares were up about 0.5% this afternoon at $94.62 each, previously topping out at a best-ever $95.17 a share. WAC shares recently were about 2% higher at $5.00 apiece, returning much of a 7% rise earlier today to $5.25 a share.

In other sector news,

(+) BX, (+5.3%) Blackstone Real Estate Income Trust ( BX ) unit breaks escrow after receiving $279 mln in net proceeds from continuous public offering of nearly 27.9 mln shares.

(-) AHT, (-1.9%) FBR & Co. downgrade to market perform from outperform.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AHT BX AIZ

Other Topics

Banking