Walter Investment Management Corp. Announces Execution of Definitive Agreement for Sale of Insurance Business to Assurant, Inc.

By a News Reporter-Staff News Editor at Insurance Weekly News -- Walter Investment Management Corp. (NYSE: WAC) ("Walter" or the "Company") announced that it has executed a Stock Purchase Agreement ("SPA") pursuant to which Walter has agreed to sell 100% of the stock of its indirect, wholly-owned subsidiary, GTI Holdings Corp. ("GTIH"), which is the holding company of Walter's primary licensed insurance agency, Green Tree Insurance Agency, Inc., to a wholly-owned subsidiary of Assurant, Inc. ("Assurant"), for a purchase price of $125.0 million in cash, subject to adjustment as specified in the SPA. Under the SPA, an affiliate of Assurant has also agreed to make potential earnout payments, in an aggregate amount of up to $25.0 million in cash, to a direct, wholly-owned subsidiary of Walter, with the amount of such payments to be based upon the gross written premium of certain voluntary homeowners' insurance written by certain affiliates of Assurant over a specified timeframe.

The aforementioned transaction is subject to various closing conditions, including the expiration or earlier termination of the Hart-Scott-Rodino waiting period.

"We are pleased to have executed the SPA with Assurant relating to the sale of our insurance business. This transaction is expected to reduce the complexity of our business operations and allow us to better focus on our process efficiency efforts to improve the performance of our core servicing and originations businesses," said Anthony N. Renzi, Walter's Chief Executive Officer and President. "We look forward to continuing our relationship with Assurant."

Keywords for this news article include: Finance and Investment, Investment and Finance, Walter Investment Management Corp.

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