Ameriprise Sells Auto And Home Business For $1.05B

April 02--Ameriprise Financial has agreed to sell its auto and home insurance business to a subsidiary of Wisconsin-based American Family Insurance Mutual Holding Company for $1.05 billion.

Minneapolis-based Ameriprise provides asset management, advisory services and insurance products to is customers including insurance products through its Ameriprise Auto & Home business that is based in De Pere, Wis.

Both companies said there would be working towards a smooth transition on behalf of its policyholders, employees and other business partners. Current AAH policy holders will retain coverage with no changes.

“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 in a statement. “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.”

Ameriprise had announced in an annual filing with the Securities and Exchange Commission on Feb. 27 that it was conducting a strategic review of options for its auto and home business. The deal is expected to close in the second half of the year.

Patrick Kennedy • 612-673-7926

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