Specialty insurance carrier Assurant, Inc. reported today that two of its top executives have been notified that they are under investigation by the Securities and Exchange Commission for possibly using certain reinsurance products to lower the firm’s risk profile and enhance its reported financial results.
The company said that Michael Steinman, senior vice president and chief actuary, Assurant Solutions /Assurant Specialty Property, and Dan Folse, vice president-risk management, Assurant Solutions / Assurant Specialty Property, have each received a “Wells notice” from the SEC in connection with its ongoing investigation of certain loss mitigation insurance products.
The Wells notices indicate that the SEC staff is considering recommending that the SEC bring a civil enforcement action against Steinman and Folse for violating various provisions of the federal securities laws.
Under the SEC’s procedures, recipients of a Wells notice have the opportunity to respond to the SEC staff before the staff makes its formal recommendation to the commission on whether any civil enforcement action should be brought.
The company said it continues to cooperate with the SEC in its investigation.
Assurant sells specialized insurance products and related services in North America and selected international markets. Its four key businesses are Assurant Employee Benefits, Assurant Health, Assurant Solutions and Assurant Specialty Property.
Its products include creditor-placed homeowners insurance; manufactured housing homeowners insurance; debt protection administration; credit insurance; warranties and extended services contracts; individual health and small employer group health insurance; group dental insurance; group disability insurance; group life insurance; and pre-funded funeral insurance.
Assurant, a Fortune 500 company headquartered in New York, is traded on the New York Stock Exchange under the symbol AIZ. Assurant has more than $20 billion in assets.
Source: Assurant, Inc.
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