Global Atlantic and Service Corporation International Form Groundbreaking Partnership in Preneed Insurance

Rhea-AI Summary

Global Atlantic Financial Group has announced a 10-year partnership with Service International (SCI) to become the preferred provider of preneed insurance for North America's largest funeral service provider.

This partnership aims to significantly grow Global Atlantic's preneed business and position it as the top provider in North America. Preneed insurance helps cover funeral costs, providing financial relief to families. SCI serves over 600,000 families annually across 1,900 locations.

The partnership will bring digital advancements for seamless customer experiences and operational efficiencies. Global Atlantic plans to hire additional staff and enhance customer support capabilities across its offices.

Positive

• Global Atlantic secures a 10-year partnership with SCI, potentially becoming the top preneed insurance provider in North America.
• The partnership allows Global Atlantic to grow its preneed business significantly.
• SCI's extensive network serves over 600,000 families annually, offering substantial market reach.
• Digital advancements promise streamlined processes and improved customer experience.
• Global Atlantic plans to add new jobs across its Batesville, Des Moines, and Hartford offices, highlighting business expansion.

Negative

• None.

Insights

Financial Analyst

The partnership between Global Atlantic and Service Corporation International (SCI) positions Global Atlantic to potentially dominate the preneed insurance market in North America. For retail investors, this means understanding the business growth implications and potential financial benefits. SCI's vast network of 1,900 locations significantly increases Global Atlantic's market reach, potentially leading to a substantial increase in policy sales and premium income.

From a financial perspective, the partnership is likely to bring in steady revenue streams for Global Atlantic, with long-term benefits. Preneed insurance policies tend to have lower lapse rates compared to other life insurance products, which suggests that customer retention will be high. Additionally, the operational readiness plan, including new job creation and digital innovations, shows a proactive approach to scaling the business efficiently.

However, it's also important to consider the costs associated with this expansion. The investment in new technologies and the hiring of new staff will incur initial expenses and the rate of return on these investments should be monitored closely. Investors should keep an eye on the margins to ensure that increased operating costs do not overly impact profitability.

Market Research Analyst

This partnership is a strategic move in the preneed insurance market, which has unique characteristics compared to other insurance segments. Preneed insurance offers peace of mind for individuals planning their end-of-life arrangements, making it a niche but highly valued product. By partnering with SCI, Global Atlantic can leverage SCI's reputation and extensive customer base, which already serves over 600,000 families annually. This is particularly important because customer trust in the preneed insurance sector is crucial.

One of the standout aspects of this partnership is the focus on digital advancements. The industry has traditionally been slow to adopt new technologies and Global Atlantic's push for innovations like electronic claim submissions and streamlined processes could set new standards. These developments will likely reduce administrative burdens and improve customer satisfaction, setting Global Atlantic apart from competitors.

For retail investors, it is essential to look beyond the immediate benefits and consider the long-term market dynamics. The aging population in North America could drive demand for preneed insurance, providing a stable market for growth. However, it's also worth noting that any changes in regulatory policies affecting life insurance could impact this segment. Hence, investor vigilance on regulatory news and market trends is advisable.

NEW YORK--(BUSINESS WIRE)-- Global Atlantic Financial Group (“Global Atlantic”), a leading insurance company meeting the retirement and life insurance needs of individuals and institutions, today announced a 10-year partnership with Service Corporation International (“SCI”), positioning it to become the preferred provider of preneed insurance for North America's largest provider of funeral, cremation and cemetery services. Preneed insurance is a type of life insurance policy created to help cover the costs associated with funeral expenses, providing peace of mind for the individual and alleviating the potential financial burden on their family.

This preferred partnership provides Global Atlantic the opportunity to significantly grow its preneed business and positions the firm to become the number one provider of preneed insurance in North America, advancing its profile in the industry.

"We are pleased to deepen our relationship with the team at SCI," said Rob Arena, Co-President of Global Atlantic. "Our commitment to protecting and helping families during some of the most difficult moments of their lives will be heightened by this new partnership, allowing us to serve more customers in their time of need with greater product enhancements and innovation. We look forward to the strengthened possibilities that our joint collaboration will bring."

The partnership creates an unparalleled opportunity to serve families across North America. SCI serves more than 600,000 families each year through its diverse portfolio of over 1,900 locations across 44 U.S. states, the District of Columbia, and Puerto Rico.

SCI’s Chairman and CEO, Tom Ryan, said, “We are pleased to name Global Atlantic as our preferred preneed insurance provider, and look forward to a long and collaborative partnership.”

The partnership also functions as a model for the preneed industry, implementing digital developments that will make for a seamless customer experience.

“These advances will usher in new efficiencies well beyond industry norms, easing the administrative burden on the customer with streamlined processes,” said John Walls II, Preneed Business Development for Global Atlantic. “This relationship will allow us to be better stewards in the industry, serving all clients with better technology and support.“

To assist with a significant increase in preneed business activity, Global Atlantic has established a comprehensive operational readiness plan, including new features to support customers, such as electronic claim submissions, and the addition of new jobs across its Batesville, Des Moines and Hartford offices. Global Atlantic’s new partnership with SCI adds to its existing core preneed business. The firm remains committed to providing those core preneed policyholders and the funeral homes they support with the strategic planning and tactical assistance they are accustomed to.

About Global Atlantic

Global Atlantic Financial Group is a leading insurance company meeting the retirement and life insurance needs of individuals and institutions. With a strong financial foundation and risk and investment management expertise, the company delivers tailored solutions to create more secure financial futures. The company's performance has been driven by its culture and core values focused on integrity, teamwork, and the importance of building long-term client relationships. Global Atlantic is a wholly owned subsidiary of KKR, a leading global investment firm. Through its relationship, the company leverages KKR's investment capabilities, scale and access to capital markets to enhance the value it offers clients. KKR's parent company is KKR & Co. Inc. (NYSE: KKR).

About Service Corporation International

Service Corporation International (NYSE: SCI), headquartered in Houston, Texas, is North America's leading provider of funeral, cemetery and cremation services, as well as final-arrangement planning in advance, serving more than 600,000 families each year. Our diversified portfolio of brands provides families and individuals a full range of choices to meet their needs, from simple cremations to full life celebrations and personalized remembrances. Our Dignity Memorial® brand is the name families turn to for professionalism, compassion, and attention to detail that is second to none. At March 31, 2024, we owned and operated 1,485 funeral service locations and 490 cemeteries (of which 306 are combination locations) in 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. For more information about Service Corporation International, please visit our website at www.sci-corp.com. For more information about Dignity Memorial®, please visit www.dignitymemorial.com.

Certain information contained in this press release constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “target,” “intend,” “continue,” “believe,” or “positions,” or other variations thereon or comparable terminology. The forward-looking statements speak only as of the date hereof and are based on Global Atlantic’s current beliefs, assumptions and expectations. Due to various risks, uncertainties and contingencies, including but not limited to obtaining required regulatory approvals, closing on signed transactions and whether the anticipated benefits of a transaction can be achieved within expected timeframes, actual events or results or performance may differ materially from what is reflected or contemplated in such forward-looking statements. Global Atlantic undertakes no obligation to update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise. Past performance is not a guarantee of future results.

Global Atlantic Financial Group (Global Atlantic) is the marketing name for The Global Atlantic Financial Group LLC and its subsidiaries, including Forethought Life Insurance Company and Accordia Life and Annuity Company. Each subsidiary is responsible for its own financial and contractual obligations. These subsidiaries are not authorized to do business in New York.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240708911822/en/

Global Atlantic:

Jenn Bernstein, 860-966-0981, Jennifer.Bernstein@gafg.com



ICR:

Brian Ruby, 203-682-8268, Brian.Ruby@icrinc.com

Adam Gerber, 203-682-8389, Adam.Gerber@icrinc.com



SCI:

Jay Andrew, 713-525-3468, Jay.Andrew@sci-us.com

Source: Global Atlantic Financial Group

FAQ

What is the partnership between Global Atlantic and Service International?

Global Atlantic has formed a 10-year partnership with Service International to become the preferred provider of preneed insurance for SCI's extensive network.

How will the partnership between Global Atlantic and SCI affect the preneed insurance market?

The partnership aims to position Global Atlantic as the top provider of preneed insurance in North America, significantly growing its business in this sector.

What are the benefits of the Global Atlantic and SCI partnership?

The partnership offers significant business growth for Global Atlantic, enhanced customer experiences through digital advancements, and operational efficiencies.

How many families does SCI serve annually?

SCI serves more than 600,000 families each year through its network of over 1,900 locations.

What operational changes are planned by Global Atlantic following the partnership with SCI?

Global Atlantic plans to implement electronic claim submissions, hire additional staff, and enhance customer support across its Batesville, Des Moines, and Hartford offices.