Assurant Health to Sell or Shut Down Hundreds of Jobs Impacted
In February of this year, Milwaukee based Assurant Health reported an operating loss of $36.8 million in the fourth quarter of 2014, contributing to a 54 percent decline in net income for its parent company Assurant Inc.
New York City-based Assurant Inc.
The decline in net income occurred at the same time revenue increased at Assurant Health, however the company sustained increased claims that hurt earnings, Assurant Inc. said.
Assurant Health has struggled to adjust to changes in the health insurance market imposed by the Affordable Care Act. This year the company is expected to report an operating loss of $80 million to $90 million in its first quarter. That comes after it lost $64 million last year.
On the heels of that news, the parent company of Assurant Health said that it will sell or shut down the Milwaukee health insurer. The company employees over 1000 people in the area.
Assurant Health, whose headquarters is in downtown Milwaukee, specializes in health insurance for small employers and individuals.
Assurant Inc., the parent company based in New York, said it is exploring a sale. Absent that, it will not sell health insurance policies in 2016 and will shut down the business.
The announcement leaves the fate of Assurant Health’s 1,700 employees companywide, most of them in the Milwaukee region.
