Fitch may lower Assurant

Fitch Ratings said it placed on Rating Watch negative Assurant, Inc.'s BBB+ issuer default rating, its BBB senior notes due 2014 and 2034 and its F2 commercial paper and short-term issuer default ratings.

The rating action follows disclosure by Assurant that its president and chief executive officer, Robert B. Pollock, executive vice president and chief financial officer, Philip Bruce Camacho, and executive vice president and chief financial officer of Assurant Solutions and Assurant Specialty Property, Adam Lamnin, each received a Well's notice from the Securities and Exchange Commission.

This announcement follows the July 5 disclosure that two employees of Assurant Solutions and Assurant Specialty Property, Michael Steinman and Dan Folse, also received Well's notices. Assurant's board of directors has placed all five employees on administrative leave.

Fitch said Assurant believes the Well's notices are related to the SEC's investigation of a certain loss-mitigating reinsurance contract that was terminated in 2004. A number of insurers, including Assurant, received subpoenas from the SEC to provide documents relating to an industry-wide investigation of these products. The Well's notice indicates that SEC staff is considering recommending a civil enforcement action against the employees alleging violations against various federal securities laws, the agency said.

The Rating Watch negative reflects Fitch's belief that a possible change in leadership could disrupt Assurant's near and long-term strategic goals, be a distraction to employees and could affect the company's franchise and reputation.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.