Retailer offloads its mobile phone insurance business to “focus on opportunities in its core business”
Phones 4U Finance has sold its mobile phone insurance company Lifestyle Services Group (LSG) to specialised insurance provider Assurant for £107 million.
The deal is expected to close in Q4, with the UK retailer stating the acquisition is unlikely to have minimal impact on Assurant’s 2014 earnings.
LSG, which says it is the largest provider of mobile phone insurance in the UK, was established in 2005 and employes more than 1,000 people across offices in Crewe and Hersham in Surrey.
It has eight million customers on its books, with clients including all major mobile networks except for O2, and high street banks such as Lloyds TSB, Barclays, Bank of Scotland, Halifax and Co-operative Bank.
Assurant is headquartered in New York and employees 14,500 people across 12 countries, with its UK offices located in Windsor and York.
It operates through four business segments: ‘Assurant Employee Benefits’, ‘Assurant Health’, ‘Assurant Solutions’ and ‘Assurant Speciality Property’.
Phones 4U Finance CEO Tim Whiting (pictured) said: “Since we started Lifestyle Services Group in 2005 the team has built its reputation on supporting clients to deliver excellent service in the mobile device insurance market. Assurant is an excellent home for Lifestyle Services Group and will support its continuing journey while allowing Phones 4u to focus on further opportunities in its core business.”
Assurant president and CEO Robert B. Pollock said: “Our acquisition of Lifestyle Services Group strengthens and expands our global mobile presence, which is an important strategic priority. Their established client portfolio, strong customer service capabilities and experienced management team accelerate our opportunities in the European mobile marketplace.”