News Room

July 7, 2003

Assurant Group Acquires Creditor Life and Disability Insurance Portfolio from Cigna Seguradora in Brazil

Acquisition positions American company for significant growth in Latin America

São Paulo: Assurant Seguradora S.A., a member of Assurant Group, a leading U.S. provider of specialty risk management products and services, announced the incorporation of the creditor life and disability insurance portfolio of American Cigna Seguradora. Terms of the transaction were not disclosed. The portfolio assignment is expected to be concluded upon SUSEP’s (Brazil’s Private Insurance Superintendence) approval.

Assurant Seguradora partners with banks, credit card companies, retailers and utility companies to offer credit life, disability and involuntary unemployment insurance to their customers. Assurant Group said the takeover will double the inforce insurance portfolio of its year-old Brazilian affiliate to more than 1.2 million insureds and increase its customer base in Brazil from 13 to 49 companies.

Bruce Camacho, president and chief executive officer of Assurant Group, said this transaction further crystallizes the company’s position in what it considers one of the world’s most attractive and growing markets for creditor insurance. "In little more than year, Assurant in Brazil has reached a maturity several years beyond our expectations and continues to confirm our decision to expand operations in Latin America," he said.

Assurant Group had about US$3.5 billion in invested assets at year-end 2002. Its Brazilian companies are forecasting annual revenues of about US$50 million by 2005.

Marcello Gonçalves, president, Assurant Seguradora S.A., said, "Our intention, when we arrived in Brazil, was to a build a solid presence in the financial protection segment. The addition of Cigna’s customer portfolio will significantly expand our operations in the Brazilian market and more than triple our number of corporate customers. As a result, we will have a much stronger platform for future growth. Going forward, we are confident that we can achieve a leading position in the creditor insurance and warranty markets by 2004."

Nicolás Di Salvo, president, Cigna Seguradora S.A., said, "Our major concern was to identify a company apt to take over our commitments in order to rest assured our individual partners and customers. Assurant has expertise in our business line and we believe that it will continue developing products and services with great benefit for our audience.

"CIGNA Seguradora will work closely with Assurant to help protect customers’ interests and minimize any impact from the assignment process. It was a tough decision because we have operated profitably during 2003, but even having invested much in Brazil and believed in our market’s potential, Cigna’s current strategy required to take this action. Throughout the CIGNA organization, our people have worked very hard toward making CIGNA a strong, competitive and innovative Company in Brazil, with considerable progress being made over the years. We sincerely appreciate their diligence, their talent and their dedication to CIGNA and its business objectives."

CIGNA’s clients will join Assurant’s portfolio, which today includes Grupo Pão de Açúcar, Vivo (TCO and NBT Telecomunicações), Losango Auto, Lojas Arapuã and Lojas Quero-Quero, as well as Lojas Pernambucanas, CPFL, Grupo Cataguazes Leopoldina and Telefônica (the latter in partnership with AON Affinity).

About Assurant in Brazil

Assurant Group’s Brazilian affiliates, Assurant Seguradora S.A. and Assurant Services Brasil Ltda., were established in May 2002. They provide financial protection services, extended warranties and cellular phone theft insurance to individual consumers through partnerships with banks, credit card companies, retailers, utility companies and loan-related companies.

Assurant Seguradora offers financial protection for unemployment, temporary work disability, permanent physical disability or death. Assurant Services underwrites and administers a variety extended warranty programs to meet the needs of retail chains, utility companies, wireless and wireline telephone service providers.

About Assurant Group

Headquartered in Miami and Atlanta, Assurant Group companies underwrite, market and administer specialty risk management products and services through partnerships with leading financial institutions, auto and manufactured home dealers and retailers. These products include specialty property insurance, debt protection programs, extended service contracts and certain membership programs.

Assurant does business throughout North America, Latin America and Europe. The company has more than 5,600 employees and operations in 11 states in the United States, Canada, Argentina, Brazil, Denmark, Ireland, Puerto Rico and the United Kingdom.

Assurant is part of Fortis, an international financial services provider active in the fields of insurance, banking and investment. As of year-end 2002, Fortis had total assets of approximately US$500 billion.

Media contact

Gaspar & Associados Comunicação Empresarial
Laís Guarizzi e Carla Meneghini
(11) 3037-3218 / 3219
e-mail: lguarizzi@gaspar.com.br / carla@gaspar.com.br

James A. Sykes
Director, Corporate Communications
Assurant Solutions
260 Interstate N. Circle, SE
Atlanta, Ga. 30339-2111
Telephone: 770.763.1015
FAX: 770.859.4325
E-mail: james.sykes@assurant.com

Reference: 0313