Assurant to exit health business
Specialty insurer Assurant has revealed it will exit the health insurance market as part of plans to focus on housing and lifestyle specialty protection offerings.
As part of it strategy, Assurant said it has reached an agreement in principle to sell certain business lines and assets to specialty personal lines insurance holding company National General, subject to final documentation and regulatory approval.
National General will acquire Assurant Health’s supplemental and small group self-funded product lines and certain other assets including a proprietary small group sales channel.
The insurer has started winding down its major medical operations and expects to complete its exit from the market by the end of 2016.
Assurant estimates that total costs associated with its exit from the health insurance market will amount to $175 million to $250 million.
Alan Colberg, Assurant president and chief executive officer (CEO), said: “Our decision to exit the health insurance market enables us to sharpen our focus on the housing and lifestyle markets, where we see the greatest opportunity for profitable growth.
“After a thorough review of alternatives for our health business, we believe the actions announced today allow us to uphold our commitments to policyholders while freeing up resources in 2016 to support our capital management strategy. We remain strongly committed to ensuring a smooth and orderly transition for our customers, agents and employees.”