Current segment operations
Currently, Assurant (AIZ) operates under three main business segments. These segments are Assurant Solutions, Assurant Specialty Property, and Assurant Health. On September 10, the company sold its Employee Benefits business to Canadian-based company Sun Life Financial.
In April 2015, the company announced plans to focus on specialty housing and lifestyle protection products and services, which would be offered through Assurant Solutions and Assurant Specialty Property as its core businesses.
While the company has already divested its Employee Benefits segment, it plans to exit the health insurance market completely by 2016. Assurant is negotiating to sell to National General Holdings Corp.
The Assurant Solutions segment has contributed 50% to Assurant’s total revenues as of 2Q15.
This segment is engaged in developing, underwriting, and marketing specialty insurance, extended service contracts, and other risk management solutions in collaboration with financial institutions, automobile deals, utilities, funeral homes, and other entities.
Primary lines of business include debt protection administration, credit insurance, and extended service contracts on appliances, consumer electronics, automobiles, recreational vehicles, and boats.
ACE Limited and Chubb Corporation form 1.14% and 0.37% of the Financial Select Sector SPDR ETF (XLF).
Assurant Specialty Property
The Assurant Specialty Property segment is engaged in the business of selling, developing, and underwriting specialty property and personal lines of insurance.
It also offers lender-placed hazard insurance and outsourcing services to mortgage companies, manufactured home builders and dealers, auto finance companies, property management companies, and managing general agents.
Assurant commands a market share of 1.39% in the property and casualty insurance market. Its closest competitors in this business segment are ACE Limited, Allstate, and Chubb Corporation.
The Assurant Health segment provides individual, short-term health insurance and small employer group health insurance. As part of its restructuring initiatives announced in April 2015, Assurant plans to exit the health insurance market. The company recently said that this process would be complete by 2016.