Assurant continues to be in long-term growth mode via acquisitions.

On Tuesday, the firm that offers F&I products, training and other educational services announced it has acquired American Financial & Automotive Services (AFAS), a provider of F&I products and services, including vehicle service contracts, guaranteed asset protection insurance and other ancillary products sold directly through a network of nearly 600 franchised dealership clients across 40 states.

Assurant explained in a news release that it has been the primary provider of vehicle service contracts and related auto products and services sold by AFAS for more than 20 years. AFAS chief executive officer and founder Arden Hetland, along with the AFAS management team, will join Assurant upon the closing of the transaction, according to the announcement.

“Following our acquisition of The Warranty Group, our agreement to acquire AFAS further underscores our confidence in the long-term growth potential of the global automotive market,” said John Laudenslager, president of Assurant Global Automotive.

“Having Arden and his team join Assurant gives us the benefit of their years of experience and expertise, which we will count on as we continue to grow the business together,” Laudenslager continued.

With nearly 2 million vehicle service contracts in place, executive also highlighted AFAS will provide greater scale and operating efficiencies and the ability to benefit from long-term favorable market trends that support increasing vehicle service contract attachment rates.

Headquartered in Houston, AFAS has more than 200 employees and looks to differentiate itself competitively within the auto third-party administrator distribution channel with its tenured field force, extensive dealer training programs, technology platforms and 40 years of industry leadership.

Hetland will lead the AFAS business, focusing on delivering an even more superior client experience.

“Joining Assurant enables AFAS to benefit from the global expertise, scale and breadth of an industry leader,” Hetland said.

“Having partnered with us for so many years, they clearly value our team’s depth of experience and high-touch relationship approach, which are key factors in our shared commitment to servicing clients and growing the business,” Hetland went onto say.

The announcement also mentioned AFAS will retain its brand and continue to operate as a separate direct-to-dealer channel under Assurant Global Automotive, throughout a multi-year transition process.

“The transition will focus on building a seamless customer experience that integrates the best of each company’s offerings,” the companies said.