Company officials attributed the smaller profits to higher than expected losses on Affordable Care Act policies at Assurant Health, as well as normalization of lender-placed insurance at Assurant Specialty Property.
The Specialty Property Division reported net operating income of $75.1 million, compared to $97.7 million the same time last year, a 23 percent decrease. That division employs close to 2,300 workers locally, making it one of the largest employers in Clark County.
Last month, the company announced plans to eliminate 87 jobs in Springfield and 33 jobs in Dayton due to lower volumes of work. The company also slashed 75 jobs last fall and 37 more in January this year.
Company officials said they plan to boost profits by focusing more on the housing and lifestyle parts of the business.
“As previously announced, we are exploring strategic alternatives for Assurant Health and Assurant Employee Benefits given their limited strategic fit and the market environment,” said Alan Goldberg, Assurant’s president and CEO in a release announcing the earnings. “Proceeds from any transaction will provide additional flexibility to fund investments in the housing and lifestyle sectors and return capital to shareholders.”
Assurant opened its $20 million, 26-acre facility at 1 Assurant Way in Springfield in 2002. It also opened a separate facility at 4646 Needmore Road in Dayton in 2013. The Springfield location primarily focuses on operational support for customers and clients of Assurant Special Property.
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