Assurant
| Company type | Public |
|---|---|
| Industry | Risk management, Insurance |
| Predecessor | Fortis, Inc. |
| Founded | February 5, 2004 (as Assurant) |
| Headquarters | Atlanta , United States |
Area served | International |
| Products | Property and casualty insurance, extended warranties, preneed insurance |
Number of employees | 14,200 (2024) |
| Website | www |
Assurant, Inc. is an international company specializing in risk management solutions, with its headquarters located in Atlanta. The firm's insurance products emphasize property and casualty coverage, extended warranty services for devices, and preneed insurance. These are delivered mainly through its two divisions: Global Housing and Global Lifestyle.[1]
Originally known as Fortis, Inc., Assurant emerged as an independent entity following its separation from the Dutch-Belgian financial group Fortis Insurance N.V. in 2004. The company’s initial public offering on February 5, 2004, generated $1.76 billion, marking it as the fourth largest IPO of that year and coinciding with the transition to the Assurant brand.[2]
In 2022, Assurant was positioned at number 325 on the Fortune 500 ranking based on revenue.[3] The company reported financial results for 2024 including $11.9 billion in revenue, $927 million in operating income, $760 million in net profit, total assets amounting to $35.0 billion, and shareholder equity of $5.11 billion. The organization employs approximately 14,200 individuals.[1]
History
The company's roots date back to the early 1890s with the establishment of the La Crosse Mutual Aid Association in Wisconsin, initially focused on disability insurance and later evolving into Time Insurance Company.
In 1978, Dutch enterprise N.V. AMEV acquired Time Insurance through its American subsidiary AMEV Holdings, Inc., which expanded its portfolio by acquiring firms such as American Security Insurance (credit-related insurance), United Family (funeral insurance), Western Insurance Company (mutual funds), and Superior Insurance (automobile insurance).
By 1990, N.V. AMEV merged with VSB Groep NV bank to create Fortis, recognized as the Netherlands' first financial conglomerate integrating banking and insurance services. In 1991, AMEV purchased the group life, accident, and health insurance operations of Mutual Benefit Life and adopted the Fortis, Inc. name. The company divested Superior Insurance in 1996 and subsequently acquired John Alden in 1998 and American Bankers Insurance in 1999.
Fortis divested its life insurance division to The Hartford in 2001. Its U.S.-based operations were rebranded as Assurant and separated from the parent company in 2004.
On June 10, 2015, Assurant declared its strategic withdrawal from the health insurance sector to concentrate on specialty protection products related to housing and lifestyle. By October that year, it completed the sale of Assurant Health’s supplemental and self-funded business segments to National General Holdings Corporation. Starting November 2015, Assurant discontinued participation in the Affordable Care Act open enrollment period and divested its Health Savings Account (HSA) and associated medical account assets to SelectAccount in March 2016.
Additionally, in 2015 Assurant exited the employee benefits market; Sun Life Financial agreed to purchase this division for $940 million in September 2015, with the transaction finalized in March 2016.
Operations
Assurant’s business is organized into two main segments:
- Global Housing: delivering lender-placed insurance products, multi-family housing solutions, and mortgage-related services.
- Global Lifestyle: providing protection plans for mobile devices, extended service agreements for electronics and appliances, vehicle protection products, as well as credit and other types of insurance coverage.
Assurant Health policy claim denials and cancellations
Assurant Health, which has since been divested, encountered considerable regulatory challenges due to the cancellation of health insurance policies held by customers suffering from serious medical conditions. The company was penalized by several states for denying claims, underscoring inherent difficulties within its business practices.
A significant legal case in 2009 before the South Carolina Supreme Court resulted in then-Fortis (now Assurant) being ordered to pay $10 million for improperly rescinding the policy of an HIV-positive insured individual. The court determined that the insurer had implemented a strategy targeting recently diagnosed HIV-positive policyholders for fraud investigations as a pretext for policy rescissions. Assurant's appeal was subsequently rejected by the U.S. Supreme Court in 2010.
In 2010, a jury in Colorado awarded $37.3 million against Assurant Health for acting in bad faith by breaching a contract with a severely injured policyholder—marking one of the largest punitive damage awards in the state's history. These cases exposed significant vulnerabilities in Assurant’s health insurance operations prior to its divestiture.
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