Prudential Financial (PRU) - Get Prudential Financial, Inc. Report agreed to pay $2.35 billion to acquire Assurance IQ as the giant life insurer seeks to sell to middle-class clients, The Wall Street Journal reported.
Assurance IQ is a three-year-old insuretech firm based in Bellevue, Wash., that will help Prudential reach new audiences and benefit from data analysis driven by algorithms.
Assurance sells life, health, Medigap and auto policies online. It also has agents available by phone. The privately held firm currently offers products from more than 20 providers, not including Prudential, according to the Journal.
"We think Assurance has cracked the code" to reach consumers whose business is typically too small to make it worthwhile for agents to seek, Prudential CEO Charles Lowrey said in an interview with the Journal.
Prudential said it would provide up to $1.15 billion in additional cash and equity if Assurance meets certain growth objectives, the report said.
Shares of Prudential were up 1.13% to $80.55 in trading Thursday.