Majority Interest in Chicago Asset Management Firm Sold to Securian Financial Group
November 20, 2014
Transaction more than triples Securian’s external insurance assets under management
St. Paul, MN, November 20, 2014 – Securian Financial Group executed a definitive agreement to purchase a majority interest in Asset Allocation & Management Company (AAM) from a private equity fund managed by Stone Point Capital and related investors. Founded in 1982, AAM is solely dedicated to meeting the investment needs of insurance companies and manages $16.4 billion in insurance company assets from its headquarters in Chicago. AAM will retain its brand, operate independently within Securian Financial Group and be governed by its own board of directors.
“The transaction deepens our commitment to the asset management business and supports our long- term strategy as an enterprise,” said Chris Hilger, president, Securian Financial Group. “AAM has a strong reputation in the insurance asset management market and a diversified base of clients. We look forward to having AAM join our family of companies.” Hilger will become CEO of Securian Financial Group on January 1, 2015.
AAM will lead new business development in insurance asset management for Securian. John Schaefer, principal and president of AAM, said AAM’s existing asset management platform will be enhanced by Securian’s long-term commitment to the business. The transaction also provides opportunities to expand AAM’s investment capabilities to meet the needs of the insurance market.
“We are excited to have Securian join AAM’s principals as investors in our firm. Securian is well capitalized, has a great reputation and, like AAM, is dedicated to serving the long-term interests of its clients,” said Schaefer. “Our management team, employees, client-centric investment strategy and service focus remain unchanged.”
Securian’s existing asset management subsidiary, Advantus Capital Management, will lead the enterprise’s business development efforts in the institutional and retail channels. Advantus will continue to manage and grow its existing client relationships.
“We look forward to partnering with AAM as we work together to grow Securian’s asset management business,” said Chris Sebald, president of Advantus. “This transaction is just one example of Securian’s commitment to grow all its asset management channels.”
The transaction is expected to close December 31. Goldman, Sachs & Co. represented Securian Financial Group in the transaction and Keefe, Bruyette & Woods, Inc. represented AAM, Stone Point and the other sellers.
About Securian Financial Group, Inc.
Since 1880, Securian Financial Group and its affiliates have provided financial security for individuals and businesses in the form of insurance, investments and retirement plans. One of the nation’s largest financial services providers, Securian is the holding company parent of a group of companies, including Advantus Capital Management. As of October 31, 2014, Securian held nearly $46 billion in assets under management and more than $1 trillion of insurance in force.
About Asset Allocation & Management Company, L.L.C. (AAM)
Asset Allocation & Management Company, L.L.C. is a Chicago-based insurance asset manager founded in 1982. The company manages $16.4 billion of insurance company assets and specializes in customized investments that fit each client’s objectives and requirements for yield, total return, risk and tax exposure. They offer specialty services such as accounting, tax modeling and enterprise risk management.
Contact: Maggie Jensen, APR
Media Relations Consultant
Securian Financial Group, Inc.
Disclaimer: Asset Allocation & Management Company, LLC (AAM) is an investment adviser registered with the Securities and Exchange Commission, specializing in fixed-income asset management services for insurance companies. Registration does not imply a certain level of skill or training. This information was developed using publicly available information, internally developed data and outside sources believed to be reliable. While all reasonable care has been taken to ensure that the facts stated and the opinions given are accurate, complete and reasonable, liability is expressly disclaimed by AAM and any affiliates (collectively known as “AAM”), and their representative officers and employees. This report has been prepared for informational purposes only and does not purport to represent a complete analysis of any security, company or industry discussed. Any opinions and/or recommendations expressed are subject to change without notice and should be considered only as part of a diversified portfolio. Any opinions and statements contained herein of financial market trends based on market conditions constitute our judgment. This material may contain projections or other forward-looking statements regarding future events, targets or expectations, and is only current as of the date indicated. There is no assurance that such events or targets will be achieved, and may be significantly different than that discussed here. The information presented, including any statements concerning financial market trends, is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. Although the assumptions underlying the forward-looking statements that may be contained herein are believed to be reasonable they can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. AAM assumes no duty to provide updates to any analysis contained herein. A complete list of investment recommendations made during the past year is available upon request. Past performance is not an indication of future returns. This information is distributed to recipients including AAM, any of which may have acted on the basis of the information, or may have an ownership interest in securities to which the information relates. It may also be distributed to clients of AAM, as well as to other recipients with whom no such client relationship exists. Providing this information does not, in and of itself, constitute a recommendation by AAM, nor does it imply that the purchase or sale of any security is suitable for the recipient. Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, inflation, liquidity, valuation, volatility, prepayment and extension. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.