Affinion Group Enters into Agreement to Sell its Insurance Division to Mill Point Capital

By a News Reporter-Staff News Editor at Insurance Business Weekly -- In a move designed to support the company's strategic focus on loyalty and customer-engagement capabilities, Affinion Group, LLC, a subsidiary of Affinion Group Holdings, Inc. (together with its consolidated subsidiaries, "Affinion Group") announced that it has entered into a definitive purchase agreement to sell its insurance division, Affinion Insurance Solutions ("AIS"), to an affiliate of Mill Point Capital.

The sale is expected to close sometime in the third quarter of this year, subject to regulatory approvals and satisfaction of certain other conditions.

"We are pleased to have reached an agreement with Mill Point Capital for the sale of our insurance business," stated Todd Siegel, Chief Executive Officer of Affinion Group. "While this business has been a meaningful contributor to Affinion Group's results, the sale is the next step in becoming a pure-play loyalty solutions company and focusing on our growing loyalty and customer engagement solutions."

"We believe the transaction is beneficial for both companies," Siegel continued. "It will allow Affinion Group to focus on its core business of providing leading loyalty and engagement solutions to its clients and their customers and to pay down debt. It also will give AIS the opportunity to chart its own path with greater resources and flexibility, making it better positioned for growth."

"Mill Point Capital has a reputation of creating value for established businesses looking to grow, and we are in a strong position to capitalize on their investment in us," said Robert Dudacek, President of AIS. "We look forward to our continued success with the support of Mill Point Capital."

As a result of the sale, Affinion Group will operate as a pure-play loyalty solutions company that, through its leading technology and data driven analytics, designs, administers and fulfills loyalty and engagement programs that strengthen and expand the value of relationships for its leading clients around the globe.

Keywords for this news article include: Affinion Group.

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