Assurant Seeks Strategic Alternatives For Employee Benefits, Health Segments

(RTTNews) - Assurant Inc (AIZ), a provider of specialized insurance products, on Tuesday said it is exploring strategic alternatives for its employee benefits and health business segments, including a sale.

This follows a strategic review of its business portfolio, with the company now deciding to focus on niche housing and lifestyle protection offerings that have growth potential in the long term.

Absent a sale of the health business segment, Assurant plans to substantially complete its exit from the health insurance market in 2016.

Assurant said its sharper focus would enable it to build upon its core capabilities to further capitalize on global consumer and market trends in the housing and lifestyle protection markets.

"We have established significant momentum in our specialty housing and lifestyle protection businesses where we have developed strong competitive positions in the U.S. and select international markets," said CEO Alan Colberg.

"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."

Assurant said proceeds from any transaction would provide it with 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.

Assurant also announced preliminary 2015 first quarter consolidated net operating income in the range of $40 million to $50 million. The company expects Assurant Health to report a net operating loss for the quarter in the range of $80 million to $90 million.

Assurant will release first quarter results on May 5.