Assurant describes health market exit plans

See also: Assurant puts health, benefits units up for sale

Assurant executives said at the time that they were confident that they could sell the benefits unit but were not sure whether they could sell the health insurance unit.

In related news, Assurant says it:

• Has agreed to sell its program for small self-insured groups, its supplemental health benefits operations, and its small-group sales channel to National General Holdings Corp. (Nasdaq:NGHC), a property-casualty insurer.

• Will send letters to customers affected by the Assurant Health unit changes beginning the week of June 15.

• Has about 1,700 positions at Assurant Health. The first phase of job reductions will occur this summer and affect about 300 positions. “Affected employees will be considered for open positions within Assurant, based on qualifications,” the company says. “Those unable to find another position will be offered severance, outplacement and job readiness support.”

Alan Colberg, Assurant’s president, said in a statement that leaving the health insurance market will help the company sharpen its focus on the housing and lifestyle markets.

“We remain strongly committed to ensuring a smooth and orderly transition for our customers, agents and employees,” Colberg said.

See also: Assurant hopes to get $140 million in PPACA ’3 R’s’ money