Credit Union Insurance Group CUNA Buys Assurant Preneed Business
In a $1.3 billion deal announced on March 9, 2021, CUNA Mutual Group is acquiring the preneed business of Assurant, an exclusive, longtime partner of Service Corporation International (SCI).
“The acquisition provides the opportunity to add a business already at scale as CUNA Mutual Group enters new markets to protect even more consumers,” reads a CUNA press release. “The business brings $6.5 billion of face value in-force. Assurant’s distribution model for preneed and final expense solutions includes a longstanding partnership with the largest funeral home provider in North America and many other funeral home partners and distributors across the U.S. and Canada.”
CUNA Mutual Group is an insurance, investment, and financial services company based in Madison, Wisconsin. Credit union leaders founded CUNA in 1935, and the company currently serves 95% of all credit unions. However, credit union members shouldn’t look for preneed services through their local branches.
“Since pre-need solutions are provided to consumers primarily through funeral homes, the company has no plans at this time to offer these services through financial institutions, such as credit unions and banks,” according to the CUNA Mutual Group statement.
Assurant has had an “exclusive relationship” with SCI for 22 years. The company’s current 10-year distribution partnership agreement with SCI runs until 2024.
Assurant alluded to the possible sale of its preneed arm in October 2020. In the same statement, the company announced its acquisition of a smartphone software upgrade and trade-in service provider. President/CEO Alan Colburg said this will allow Assurant to “focus on opportunities within the broader lifestyle and housing portfolio.”
Under the new ownership, the preneed operations will continue to operate from its current Rapid City, South Dakota location. It will have “limited integration into CUNA Mutual Group’s other business lines or operations,” according to the recent release.
