American Financial & Automotive Services acquired by Assurant

New York-based insurance company Assurant has acquired American Financial & Automotive Services (AFAS), a provider of auto finance and insurance products and services, for an undisclosed price.

American Financial & Automotive Services’ offerings include vehicle service contracts, guaranteed asset protection insurance, and other ancillary products, which are directly sold via a network of around 600 franchised dealership clients in 40 states in the US.

Assurant said that it has been the primary provider of vehicle service contracts and associated auto products and services sold by American Financial & Automotive Services for more than 20 years.

Arden Hetland – American Financial & Automotive Services CEO and founder and the company’s management team will join Assurant following the competion of the transaction.

John Laudenslager – president of Assurant Global Automotive said: “Following our acquisition of The Warranty Group, our agreement to acquire AFAS further underscores our confidence in the long-term growth potential of the global automotive market.

“Having Arden and his team join Assurant gives us the benefit of their years of experience and expertise, which we will count on as we continue to grow the business together.”

American Financial & Automotive Services, which is said to have almost two million vehicle service contracts in-force, is expected to offer greater scale and operating efficiencies for Assurant, and the ability to benefit from long-term favorable market trends that underpin growing vehicle service contract attachment rates.

The Texas-based American Financial & Automotive Services has more than 200 employees.

American Financial & Automotive Services acquired by Assurant. Image courtesy of Gerd Altmann from Pixabay.

Arden Hetland will lead the American Financial & Automotive Services business with a focus on delivering an even more superior client experience.

Arden Hetland said: “Joining Assurant enables AFAS to benefit from the global expertise, scale and breadth of an industry leader.

“Having partnered with us for so many years, they clearly value our team’s depth of experience and high-touch relationship approach, which are key factors in our shared commitment to servicing clients and growing the business.”

American Financial & Automotive Services will retain its brand and continue to be run as a separate direct-to-dealer channel under Assurant Global Automotive during a multi-year transition process. The transition will be focusing on creating a seamless customer experience that integrates the best of the two companies’ offerings.