Ameriprise Financial to Sell Auto & Home Business

Ameriprise Financial announced it has signed a definitive agreement with a subsidiary of Madison, Wisconsin-based American Family Insurance Mutual Holding Company (American Family Insurance) for the sale of Ameriprise Auto & Home (AAH), a business unit of Ameriprise Financial based in De Pere, Wisconsin. Ameriprise will receive gross proceeds of $1.05b in cash. After a payment to an affinity partner, the net proceeds are approximately $950m, subject to certain post-closing financial adjustments. Current AAH customers will retain their policies with no change in coverage or service.

Ameriprise made the decision to pursue a sale following a previously disclosed strategic review of the AAH business and the company determined that now is an appropriate time to exit this business. The sale is consistent with Ameriprise’s strategic focus on its core growth areas of Advice & Wealth Management and Asset Management.

“We are proud of the exceptional value and award-winning service we’ve provided to Auto & Home policyholders over the last several decades and we sincerely thank each and every employee for their dedication and contributions. This transaction is consistent with our strategy to grow our less capital-intensive businesses and is expected to reduce our risk profile and increase capital flexibility. Given American Family’s financial strength and reputation for quality products and customer care, we are pleased to reach this agreement and feel confident that we will be leaving the business in good stead.” – Chairman and CEO of Ameriprise Financial, Jim Cracchiolo.

The transaction is subject to customary conditions and regulatory approvals and is expected to close in the second half of 2019.