Assurant Inc. says it is looking for buyers for its health insurance and employee benefits units.
One way or another, Assurant wants to get out of the health insurance market by 2016, the company said in late April.
The company as a whole reported about $40 million to $50 million in net operating income for the quarter. The benefits unit has been doing about as well as the other units, but the Assurant Health unit reported about $80 million to $90 million in net operating losses.
About half of that loss is the result of a reduction in expected recoveries from the three Patient Protection and Affordable Care Act risk-management programs, and about half reflects high claims on PPACA-compliant policies in force during the first quarter, the company said.
Whether Assurant can sell Assurant Health or not, it will begin the process of leaving the health insurance market this year, and will not participate in the open enrollment period for 2016.
“The company's exit will be substantially complete in 2016,” Assurant said.
Instead, the company will focus on its mortgage insurance and personal property protection insurance businesses.
Assurant President Alan Colberg said the company has decided to sell the health and benefits units because it does not believe the units can increase returns as quickly as the company requires.
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Allison Bell
Allison Bell, a senior reporter at ThinkAdvisor and BenefitsPRO, previously was an associate editor at National Underwriter Life & Health. She has a bachelor's degree in economics from Washington University in St. Louis and a master's degree in journalism from the Medill School of Journalism at Northwestern University. She can be reached through X at @Think_Allison.
