Solid Advance for Financial Stocks

Financial stocks were broadly higher again on Wednesday, with the NYSE Financial Sector Index climbing almost 0.9% while financial companies in the S&P 500 Index were adding more than 0.5% in value today.

In company news, Assurant (AIZ) climbed to a record high on Wednesday after the specialty insurance company today said it was buying the wholly-owned Green Tree Insurance Agency from Walter Investment Management Corp (WAC) for $125 million in cash plus earn-out provisions that could add up to $25 million more to the deal proceeds.

Green Tree and its mortgage insurance affiliates generated around $31.6 million in revenue during the nine months ended Sept. 30, 2016, down from $34.3 million during the same period in 2015. Assurant is expecting the deal will have little impact on its FY17 GAAP earnings but sees the acquisition improving margins on its existing business and producing around $25 million in annualized net earned premium and fee income this year.

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