Assurant announced an agreement with Nationwide to provide flood insurance coverage options for policyholders and agents, following Nationwide’s exit as a “Write Your Own” carrier in the National Flood Insurance Program.
Assurant, the second-largest NFIP flood insurance provider in the nation, will acquire the opportunity to renew approximately 250,000 policies representing approximately $230 million in written premium under the NFIP, the federally-guaranteed program protecting millions of American properties.
Terms of the transaction were not announced.
"This transaction supports our strategy to protect where customers live and what they buy," said Gene Mergelmeyer, president and CEO of Assurant Specialty Property, a business segment of Assurant.
"We continue to build upon our leadership position in the flood insurance market, protecting thousands of properties, and we are proud to serve a new group of Nationwide agents and customers.
"We will work with Nationwide to ensure a seamless transition for policyholders and agents, and look forward to providing them with excellent service."
Under the NFIP, WYO insurance providers issue policies and service claims, through which the federal government covers flood losses for participating property owners.
There will be no changes to existing Nationwide NFIP benefits or policies, which remain in effect through their renewal date. At renewal, Nationwide has arranged for existing NFIP policyholders to have the option to easily renew through Assurant. Nationwide agents will have the ability to offer NFIP policies through Assurant on an ongoing basis.
"As Nationwide shifts its focus to our core products over the long-term, we’re pleased to arrange alternative flood coverage options for our customers with Assurant," said Sabrina Freiberg, leader of Nationwide’s brokerage solutions team. "Our goal is to make this a seamless transition for all parties involved."
Assurant (AIZ) is a global provider of risk management solutions, protecting where consumers live and the goods they buy.
A Fortune 500 company, Assurant focuses on the housing and lifestyle markets, and is among the market leaders in mobile device protection; vehicle protection; pre-funded funeral insurance; renters insurance; lender-placed homeowners insurance; and mortgage valuation and field services.