Assurant announced that, following a strategic review of its business portfolio, the company will focus its resources on niche housing and lifestyle protection offerings where it holds market leading positions to consistently generate specialty returns long term.
In reshaping the Company’s portfolio, Assurant is exploring strategic alternatives for its employee benefits and health business segments, including the sale of each business. Absent a sale of the health business segment, the Company plans to substantially complete its exit from the health insurance market in 2016.
Assurant’s sharper focus will enable the Company to build upon its core capabilities to further capitalize on global consumer and market trends in the housing and lifestyle protection markets.
The company will broaden the integrated protection products and services from its Assurant Specialty Property and Assurant Solutions business segments to help customers protect against risk, including offerings such as mobile and other extended service contracts, lender-placed insurance, multi-family housing, mortgage solutions, vehicle service contracts and pre-funded funeral plans.
"We have established significant momentum in our specialty housing and lifestyle protection businesses where we have developed strong competitive positions in the US and select international markets. Recognizing the wide array of additional growth opportunities in these areas, we will concentrate resources where we can generate sustainable specialty returns as we pursue our aspirations of outperformance," said Assurant President and CEO Alan B. Colberg.
Assurant Employee Benefits serves more than 30,000 small and mid-sized employers, providing a robust product suite of voluntary and employer-paid products including dental, long-term and short-term disability and life insurance.
With nearly one million customers, Assurant Health provides a broad array of insurance coverage to individuals, families and small employers including major medical, short-term and supplemental plans.
Proceeds from any transaction will provide Assurant additional financial flexibility to invest in areas targeted for growth and return capital to shareholders. Barclays Capital is serving as financial advisor to Assurant to assist in the exploration of strategic alternatives for its health and employee benefits businesses.