Ameriprise Financial To Sell Auto&Home Business To American Family For $1.05 Bln

(RTTNews) - Ameriprise Financial (AMP) announced it has signed a definitive agreement with a subsidiary of Madison, Wisconsin-based American Family Insurance Mutual Holding Company for the sale of Ameriprise Auto & Home or AAH, a business unit of Ameriprise Financial based in De Pere, Wisconsin.

Ameriprise will receive gross proceeds of $1.05 billion in cash. After a payment to an affinity partner, the net proceeds are approximately $950 million, subject to certain post-closing financial adjustments. Current AAH customers will retain their policies with no change in coverage or service.

Ameriprise said it made the decision to pursue a sale following a previously disclosed strategic review of the AAH business and the company determined that now is an appropriate time to exit this business.