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Ameriprise Financial Announces Agreement to Sell Auto & Home Business to American Family Insurance for $1.05 Billion


Ameriprise Financial (NYSE:AMP) today 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 $1.05 billion in cash. After a payment to an
affinity partner, the net proceeds are approximately $950 million,
subject to certain post-closing financial adjustments. Both companies
are committed to executing a smooth transition for partners,
policyholders, employees and other stakeholders. 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," said Jim Cracchiolo, Chairman and CEO of Ameriprise
Financial. "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."

The Ameriprise Auto & Home legal entities are being sold and there will
be no contingent liability associated with this transaction for
Ameriprise Financial except for certain post-closing financial
adjustments and customary indemnification obligations in a transaction
of this type. The transaction is subject to customary conditions and
regulatory approvals and is expected to close in the second half of 2019.

Credit Suisse Securities (USA) LLC acted as financial advisor and
Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to
Ameriprise in the transaction.

About Ameriprise Financial
At Ameriprise Financial, we have
been helping people feel confident about their financial future for more
than 120 years. With extensive asset management, advisory and insurance
capabilities and a nationwide network of approximately 10,000 financial
advisors, we have the strength and expertise to serve the full range of
individual and institutional investors' financial needs. For more
information, or to find an Ameriprise financial advisor, visit

Ameriprise Financial Services, Inc. Member FINRA and SIPC.

About American Family Insurance
Madison, Wisconsin-based
American Family Insurance group is the nation's 13th-largest
property/casualty insurance group and ranks No. 311 on the Fortune 500
list. The company sells American Family-brand products, including auto,
homeowners, life, business and farm/ranch insurance, primarily through
its exclusive independent contractor agents in 19 states. American
Family affiliates (The General and Homesite) also provide options for
consumers who want to manage their insurance matters directly over the
internet or by phone. Affiliate Main Street America sells insurance
products through independent agents. Web;

Forward-Looking Statements
This press release contains, and
certain oral statements made by our representatives from time to time
may contain, forward-looking statements that reflect management's plans,
estimates and beliefs. Actual results could differ materially from those
described in these forward-looking statements. The words "believe,"
"expect," "anticipate," "intend," "plan," "will," "may," "should",
"could", "would," "likely," "forecast," "project" or similar expressions
are intended to identify forward-looking statements but are not the
exclusive means of identifying such statements. Forward-looking
statements are subject to risks and uncertainties, which could cause
actual results to differ materially from such statements. Such factors
include, but are not limited to: the occurrence of any event, change or
circumstance that could give rise to the termination of the purchase
agreement with American Family; the inability to complete the proposed
sale due to the failure to satisfy the conditions to the closing of the
proposed sale, including that a governmental entity may prohibit, delay
or refuse to grant approval for the consummation of the proposed sale;
uncertainty as to the timing of completion of the proposed sale; risks
that the proposed transaction disrupts current plans and operations; and
general economic and political factors. Management cautions that the
foregoing list of factors is not exhaustive. There may also be other
risks that management is unable to predict at this time that may cause
actual results to differ materially from those in these forward-looking
statements. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date on which
they are made. Management undertakes no obligation to update publicly or
revise any forward-looking statements. The foregoing list of factors
should be read in conjunction with the "Risk Factors" discussed under
Part 1, Item 1A of and elsewhere in our Annual Report on Form 10-K for
the year ended December 31, 2018 available at

© 2019 Ameriprise Financial, Inc. All rights reserved.

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