Aflac (NYSE:AFL) agrees to acquire Zurich (OTCQX:ZURVY) (OTCQX:ZFSVF) North America's U.S. Corporate Life and Pensions business, consisting of group life, disability, and absence management products.
Aflac units American Family Life Assurance Company of Columbus and American Family Life Assurance Company of New York will reinsure on an indemnity basis Zurich North America's U.S. in-force group life and disability policies with annualized earned premium of ~$115M.
Aflac will also acquire assets needed to support the group life and disability business, along with an absence management platform.
Aflac expects the acquisition and associated growth expenses to be dilutive to 2020 adjusted EPS in the range of 2 cents-3 cents. Aflac further expects modest run-rate dilution over the near-term as it continues to expand the platform.
