Assurant Health Care may be sold or closed

Freeman Staff

April 28, 2015

MILWAUKEE — Assurant Inc. announced Tuesday that its health business segment, Assurant Health, may be sold or closed as part of the New York City-based company reshaping its portfolio.

After reviewing its business portfolio, Assurant Inc. said it will focus its resources on niche housing and lifestyle protection offerings — areas where it holds strong positions in the market. In addition to looking at selling Assurant Health, the parent company is also considering selling off its business segment. 

“Absent a sale of the health business segment, the company plans to substantially complete its exit from the health insurance market in 2016,” according to the announcement.

The company expects Milwaukee-based Assurant Health to report a net operating loss for the first quarter in the range of $80 million to $90 million. Approximately half of the loss is attributable to a reduction in 2014 estimated recoveries from the Affordable Care Act risk mitigation programs, according to Assurant Inc. The remainder reflects elevated claims on 2015 ACA policies.

“The health and employee benefits business segments possess differentiated capabilities in their respective markets, but we do not believe they can meet our return targets at the pace we require,” said Assurant President and CEO Alan B. Colberg in a statement. “While this is a difficult decision, we believe they would be strong assets for new owners that are focused more exclusively on health care and employee benefits. During this process, Assurant remains dedicated to upholding our commitments to customers and policyholders.”