Assurant

Last updated
Assurant, Inc.
Company type Public
Industry Insurance
Founded1892;132 years ago (1892)
Headquarters
Atlanta
,
U.S.
Area served
Worldwide
Key people
Keith W. Demmings
(President & CEO) [1]
Products
Services Risk management
RevenueIncrease2.svg US$10.19 billion (2021) [2]
Increase2.svgUS$783 million (2021) [2]
Increase2.svgUS$1.37 billion (2021) [2]
Total assets Decrease2.svgUS$33.91 billion (2021) [2]
Total equity Decrease2.svgUS$5.49 billion (2021) [2]
Number of employees
c. 15,600 (2021) [2]
Website assurant.com

Assurant, Inc. is a global provider of risk management products and services [3] with headquarters in Atlanta. [2] Its businesses provide a diverse set of specialty, niche-market insurance products in the property, casualty, extended device protection, and preneed insurance sectors. The company's main operating segments are Global Housing and Global Lifestyle. [2]

Contents

The company, formerly known as Fortis, Inc., was spun off from Dutch and Belgian financial-services company Fortis Insurance N.V. in 2004. The company's initial public offering on Feb. 5, 2004 at $1.76 billion was the fourth largest that year. In connection with the public offering, the company changed its name to Assurant, Inc. [4] [5]

Assurant is 325 on the Fortune 500 list of the largest companies in the United States by revenue as of 2022. [6]

History

Assurant can trace its roots back to the founding of the La Crosse Mutual Aid Association, which was established to sell disability insurance in Wisconsin in the early 1890s. La Crosse Mutual Aid Association would later become the Time Insurance Company. [7]

In 1978, N.V. AMEV of the Netherlands acquired the Time Insurance Company via its U.S. holding company AMEV Holdings, Inc. During the next 12 years, AMEV Holdings, Inc. would expand through acquisition, buying American Security Insurance (credit-related insurance); United Family (funeral insurance); Western Insurance Company (mutual funds); and Superior Insurance (auto insurance). [8]

In 1990, N.V. AMEV of the Netherlands acquired VSB Groep NV bank to become the Netherlands first financial conglomerate combining an insurer and a bank, creating Fortis. [9]

In 1991, AMEV acquired the group life, accident and health insurance of Mutual Benefit Life Insurance Company. [10] AMEV Holdings, Inc. was rebranded Fortis, Inc. in 1991. [11] Superior Insurance was sold in 1996. [12] Fortis acquired John Alden in 1998 and American Bankers Insurance in 1999. [13] [14]

Fortis Inc. sold its life insurance to The Hartford in 2001. [15] Fortis' American business was subsequently renamed as Assurant and spun off from the parent company in 2004. [16] [17]

On June 10, 2015, Assurant announced an exit from the health insurance marketplace to focus on housing and lifestyle specialty protection products and services, and would be winding down its Assurant Health business. [18] [19] In October 2015, Assurant announced it had completed the sale of Assurant Health's existing supplemental and self-funded business lines to National General Holdings Corporation. [19] [20] [21] Assurant began to wind down its major medical operations and did not participate in the next Affordable Care Act open enrollment period beginning in November 2015. [18] [19] Assurant sold its HSA assets and other medical-account assets to SelectAccount in March 2016. [22] In 2015 Assurant also announced it was exiting the employee benefits marketplace. [23] Sun Life Financial agreed to acquire Assurant Employee Benefits for $940 million in September 2015, [24] [23] and closed the sale in March 2016. [25]

Operations

Assurant operates two main segments:

Assurant Health policy claim denials and cancellations

Assurant Health (now divested from Assurant) [22] [19] was repeatedly found to cancel health policies for some customers that had serious medical conditions, and 12 states criticized the firm for denying claims, with most of the states levying fines against Assurant. [26] [27] [28] A number of individual cases have been reported.

In September 2009, the South Carolina Supreme Court upheld a lower court's verdict that the firm (then known as "Fortis") wrongly revoked the health insurance policy of a holder who had contracted HIV subsequent to getting an insurance policy, and ordered the firm to pay $10 million to the plaintiff. The court found that:

Pursuant to company policy in cases involving long-term disease, Fortis launched an investigation to determine whether [the plaintiff] had failed to disclose a pre-existing condition on his policy application...A Fortis investigator reviewed the records and discovered [an] erroneously-dated intake note in [the doctor’s] files. That information was then forwarded to [a] Fortis Senior Underwriter...for review. [The underwriter]...recommended that [the plaintiff’s] policy be rescinded on the grounds that he had misrepresented his HIV positive status.

A Reuters report on the ruling stated that Fortis had a company policy to target every recently diagnosed HIV-positive policyholder for an automatic fraud investigation as a pretext to rescind their policy, according to undisclosed records. As in that case, their insurance policies often were canceled on incorrect information, flimsy evidence, or for no reason at all. [29] In March 2010, the U.S. Supreme Court rejected the firm's appeal of the ruling. [30]

In February 2010, a Boulder, Colorado jury found that Assurant Health had breached its contract with a woman who was severely injured in a hit-and-run accident, and awarded her $183,551 for medical bills and approximately $37.1 million in punitive damages. This was described as "one of the largest bad-faith judgments in Colorado history". [31]

Related Research Articles

Pacific Century Group (PCG), chaired by Richard Li, is an Asia-based private investment group founded in 1993 with interests in technology, media and telecommunications, financial services, infrastructure, property and other investments. It operates mainly in the Asia-Pacific region, including Singapore, Hong Kong and Japan.

<span class="mw-page-title-main">MetLife</span> Large American insurance company

MetLife, Inc. is the holding corporation for the Metropolitan Life Insurance Company (MLIC), better known as MetLife, and its affiliates. MetLife is among the largest global providers of insurance, annuities, and employee benefit programs, with 90 million customers in over 60 countries. The firm was founded on March 24, 1868. MetLife ranked No. 43 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.

Chubb Limited is an American company incorporated in Zürich, Switzerland. It is the parent company of Chubb, a global provider of insurance products covering property and casualty, accident and health, reinsurance, and life insurance and the largest publicly traded property and casualty company in the world. Chubb operates in 55 countries and territories and in the Lloyd's insurance market in London. Clients of Chubb consist of multinational corporations and local businesses, individuals, and insurers seeking reinsurance coverage. Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance.

<span class="mw-page-title-main">Axa</span> French multinational insurance firm

Axa S.A. is a French multinational insurance company headquartered in the 8th arrondissement of Paris. It also provides investment management and other financial services.

<span class="mw-page-title-main">Genworth Financial</span> American insurance company

Genworth Financial, headquartered in Richmond, Virginia, provides life insurance, long-term care insurance, mortgage insurance, and annuities.

<span class="mw-page-title-main">Unum</span> American insurance company

Unum Group is an American insurance company headquartered in Chattanooga, Tennessee. Founded as Union Mutual in 1848 and known as UnumProvident from 1999-2007. The company is part of the Fortune 500. Unum Group was created by the 1999 merger of Unum Corporation and The Provident Companies and comprises four distinct businesses – Unum US, Unum UK, Unum Poland and Colonial Life. Its underwriting insurers include The Paul Revere Life Insurance Company and Provident Life and Accident Insurance Company.

<span class="mw-page-title-main">Manulife</span> Canadian multinational insurance company and financial services provider

Manulife Financial Corporation is a Canadian multinational insurance company and financial services provider headquartered in Toronto, Ontario. The company operates in Canada and Asia as "Manulife" and in the United States primarily through its John Hancock Financial division. As of December 2021, the company employed approximately 38,000 people and had 119,000 agents under contract, and has CA$1.4 trillion in assets under management and administration. Manulife at one point serviced over 26 million customers worldwide.

<span class="mw-page-title-main">Rescission (contract law)</span> Remedy which allows a contractual party to cancel the contract

In contract law, rescission is an equitable remedy which allows a contractual party to cancel the contract. Parties may rescind if they are the victims of a vitiating factor, such as misrepresentation, mistake, duress, or undue influence. Rescission is the unwinding of a transaction. This is done to bring the parties, as far as possible, back to the position in which they were before they entered into a contract.

The Guardian Life Insurance Company of America is one of the largest mutual life insurance companies in the world. Based in Manhattan, it has approximately 8,000 employees in the United States, and a network of over 3,000 financial representatives in more than 70 agencies nationwide. As of 2018, it ranks 239th on the Fortune 500 list of largest American corporations by revenue. In 2015, Guardian achieved the highest earnings in its 155-year history with $7.3 billion in capital and $1.5 billion in operating costs. Founded in Manhattan in 1860, the company offers a wide range of insurance products and services, including life insurance, disability income insurance, annuities, investments, and dental and vision insurance coverage.

De Volksbank is a Dutch retail bank offering financial products to both companies and individuals. Prior to a 2017 restructuring, it was called SNS Bank, which remains its major brand name. It became a subsidiary of SNS Reaal in 1997 when the holding company bought the insurance company Reaal. The bank and its parent were rescued by the Dutch government in 2013 and have been state owned since then. In 2016, SNS Bank was the fourth-largest bank in the Netherlands in terms of total assets.

QBE Insurance Group Limited is a general insurance and reinsurance company listed on the Australian Securities Exchange and headquartered in Sydney. The company employs more than 11,700 people in over 27 countries. Across its operations, QBE offers commercial, personal and specialty products and risk management products.

<span class="mw-page-title-main">Mutual Benefit Life Insurance Company</span> Office in Newark, New Jersey

The Mutual Benefit Life Insurance Company was a life insurance company that was chartered in 1845 and based in Newark in Essex County, New Jersey, United States. The company was headed by Frederick Frelinghuysen (1848–1924). The company was known as the "Tiffany" of insurance companies, a reference to its reputation as the life insurance company to the upper classes.

MS Amlin Ltd is an insurer operating in the Lloyd's, UK, Continental Europe and Bermudian markets. Specialising in providing insurance cover to commercial enterprises and reinsurance protection to other insurance companies around the world, MS Amlin's shares were listed on the London Stock Exchange until it was acquired by Mitsui Sumitomo Insurance Group in February 2016.

<span class="mw-page-title-main">Ageas</span>

Ageas is a Belgian-French multinational insurance company co-headquartered in Brussels. Ageas is Belgium's largest insurer and operates in 14 countries worldwide. The company was renamed from Fortis Holding in April 2010 and consists of those insurance activities remaining after the breakup and sale of the financial services group Fortis during the financial crisis of 2007-2010.

<span class="mw-page-title-main">ASR Nederland</span>

ASR Nederland is a major Dutch insurance group based in Utrecht. The company was created in its current form in 2008 when the insurance business was split out of Fortis, after it was acquired by the Dutch government during the Financial crisis of 2007-2010. The Dutch government revived the old name that had been used prior to the acquisition by Fortis in 2000 for the newly structured company.

<span class="mw-page-title-main">Elevance Health</span> American healthcare company

Elevance Health, Inc. is an American health insurance provider. Prior to June 2022, Elevance Health was named Anthem, Inc. The company's services include medical, pharmaceutical, dental, behavioral health, long-term care, and disability plans through affiliated companies such as Anthem Blue Cross and Blue Shield, Anthem Blue Cross in California, Wellpoint, and Carelon. It is the largest for-profit managed health care company in the Blue Cross Blue Shield Association. As of 2022, the company had 46.8 million members within its affiliated companies' health plans.

<span class="mw-page-title-main">AG Insurance</span>

AG Insurance is a Belgian insurance company providing life insurance and non-life insurance and supplementary pensions. It has been present on the Belgian insurance market since 1824. It targets private individuals, as well as self-employed persons, SMEs and large companies. AG Insurance's products are distributed exclusively through its partners.

<span class="mw-page-title-main">Mutual Life Insurance Company of New York</span> American life insurance company

The Mutual Life Insurance Company of New York was the oldest continuous writer of insurance policies in the United States. Incorporated in 1842, it was headquartered at 1740 Broadway, before becoming a wholly owned subsidiary of AXA Financial, Inc. in 2004.

References

  1. ↑ "Management Committee, President and CEO Keith Demmings".
  2. 1 2 3 4 5 6 7 8 9 10 "Assurant, Inc. 2021 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. 22 February 2022.
  3. ↑ Frankel, Daniel. "Comcast chooses Assurant for mobile phone protection plans | FierceCable". www.fiercecable.com. Retrieved 26 July 2017.
  4. ↑ "Dutch insurer Amev is buying VSB Groep NV bank for..." tribunedigital-chicagotribune. Retrieved 2017-07-12.
  5. ↑ Gelsi, Steve. "Assurant's debut leads IPO quintet". MarketWatch. Retrieved 2017-07-12.
  6. ↑ "Assurant". Fortune . Retrieved 2022-06-04.
  7. ↑ Usher, Ellis Baker, Wisconsin: Its Story and Biography 1848-1913, Vol. 8, p. 2297
  8. ↑ New Top Posts Filled By AMEV Holdings Cuff, Daniel (November 28, 1990). “New Top Posts Filled By AMEV Holdings.” The New York Times.
  9. ↑ Dutch insurer Amev is buying VSB Groep (January 23, 1990). “Dutch insurer Amev is buying VSB Groep NV bank for...” Chicago Tribune online
  10. ↑ ZONANA, VICTOR F. (1991-08-01). "Ailing Mutual Benefit Sells Off Units to AMEV". Los Angeles Times . ISSN   0458-3035 . Retrieved 2015-07-10.
  11. ↑ Hagerty, Bob (4 June 1991). "Groupe AG, Amev Report 31% Rise In Profit, Pick Fortis as Firm's Name". The Wall Street Journal .
  12. ↑ "Financial brief: Fortis". The Wall Street Journal . 2 May 1996.
  13. ↑ "Fortis To Acquire John Alden". Archived from the original on 2015-06-19. Retrieved 2015-06-19.
  14. ↑ "All News". www.assurant.com. Retrieved 2017-07-12.
  15. ↑ "Newsroom detail" . Retrieved 2019-04-14.
  16. ↑ Fortis to spin-off US insurance arm (September 1, 2003) “Fortis to spin-off US insurance arm.” The Insurance Insider.
  17. ↑ "SEC Complaint: Assurant, Inc" (PDF). Retrieved 5 February 2016.
  18. 1 2 Archived 2015-09-05 at the Wayback Machine (June 10, 2015) “Assurant to Exit Health Insurance Market to Support Strategic Focus on Housing and Lifestyle Specialty Protection Products and Services” Press Release. Retrieved October 25, 2015
  19. 1 2 3 4 Marshall, Erin (2 Oct 2015). "Assurant completes sale of business lines to National General Holdings Corp". Becker's Hospital Review. Retrieved 4 February 2016.
  20. ↑ Archived 2016-03-04 at the Wayback Machine (October 1, 2015) “Assurant Completes Sale of Supplemental and Small Group Self-Funded Health Insurance Business Lines to National General Holdings Corp.” Press Release. Retrieved October 25, 2015
  21. ↑ Blumenthal, Robin Goldwyn. "Why a Big Insurer's Stock Could Double". Barron's. Retrieved 19 July 2017.
  22. 1 2 Steyer, Robert. "Big players dropping HSA business despite growth potential - Business Insurance". Business Insurance. Retrieved 20 July 2016.
  23. 1 2 Scism, Leslie (9 September 2015). "Sun Life to Buy Assurant's Employee-Benefits Business in $975 Million Deal". The Wall Street Journal . Retrieved 28 July 2017.
  24. ↑ Dmitrieva, Katia. "Sun Life to Buy Assurant Unit With $975 Million Investment". Bloomberg News . Retrieved 5 February 2016.
  25. ↑ Fernandes, Deirdre (1 Mar 2016). "Sun Life complete purchase of employee benefit business". Boston Globe . Retrieved 4 March 2016.
  26. ↑ State of Connecticut Office of the Healthcare Advocate
  27. ↑ Yates, Jon (29 September 2009). "Insurer another headache Insurer causes more headaches". Chicago Tribune . Retrieved 2020-07-01.
  28. ↑ Oregon regulators slap fine on Assurant Health Business Jrnl of Milwaukee, Oregon Regulators slap fine on Assurant Health, March 6, 2007
  29. ↑ "Insurer target HIV patients to drop coverage". Reuters . March 17, 2010.
  30. ↑ "Supreme Court refuses Assurant's appeal of $10 million award in HIV case [Milwaukee Journal Sentinel]". InsuranceNewsNet. 2010-03-24. Retrieved 2020-07-01.
  31. ↑ Prendergast, Alan (2010-02-11). "Health-Care Hell: The insurance company didn't give a damn. The jury decided it ought to give $37 million". Westword. Archived from the original on 2012-11-02. Retrieved 2017-07-12.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.