Specialty insurer Assurant, Inc. says it will purchase U.K. mobile phone insurance insurer Lifestyle Services Group for $160 million, a move Moody's Investors Service says should help diversify Assurant's sources of net operating income over time.
Assurant CEO Robert B. Pollock says in a statement, "Our acquisition of Lifestyle Services Group strengthens and expands our global mobile presence, which is an important strategic priority."
Moody's analyst Jasper Cooper notes in the ratings agency's "Weekly Credit Outlook" that the purchase price is equal to 8.5 times LSG's earnings before interest, taxes, depreciation and amortization (EBITDA). Moody's adds that Assurant plans to pay for the acquisition with cash at the holding company, "which appears to be manageable given that the holding company as of June 30 had significant liquidity totaling $890 million in cash and liquid securities, excluding $476 million set aside for a February 2014 debt maturity."
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