Prudential Financial wraps up $2.3bn acquisition of Assurance IQ
US financial services giant Prudential Financial has wrapped up its previously announced acquisition of US online insurance startup Assurance IQ, as per the latest insurance acquisition news.
As per the terms of Prudential acquisition of Assurance IQ, announced last month, the online insurance company became a fully-owned subsidiary of the former.
The online insurance provider, which was founded in 2016, was to be paid the consideration upfront as per the deal terms. Additionally, the company will be entitled to an additional earnout of up to $1.15 billion through a combination of cash and equity, based on achieving multi-year growth targets.
Based in Bellevue, Washington, Assurance IQ offers tailored solutions for life, health, Medicare and auto insurance by tapping into advanced data science and human expertise. The customized insurance solutions and coverage are worked out based on a variety of parameters such as age, health, and enrollment periods.
According to the online insurance provider, a majority of its customers apply for the custom insurance solutions completely online, while others opt for the combination of the digital guidance and expert advice of on-demand licensed agents provided by the company.
Prudential Financial had earlier said that it will look to offer its own financial wellness solutions on the online insurance platform of Assurance IQ along with those of third-party providers.
By acquiring Assurance IQ, Prudential Financial gains an established direct-to-consumer channel, which will help it reach the underserved mass market.
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