Specialty insurer Assurant Inc. said it has fired two executives implicated in a federal regulatory probe into loss mitigation insurance products.
The New York-based company said Michael Steinman, former senior vice president and chief actuary of Assurant Solutions/Assurant Specialty Property, and Dan Folse, former vice president-risk management, Assurant Solutions/Assurant Specialty Property, were fired.
The company said the action follows a review conducted by a special committee of the board of directors. Both employees were placed on administrative leave after they received Wells notices from the Securities and Exchange Commission in connection with the regulators' ongoing investigation of certain loss mitigation insurance products.
Loss mitigation products such as financial reinsurance have been the target of past SEC probes as to whether enough risk is transferred in them to warrant their accounting treatment.
Several other key Assurant executives remain on administrative leave since last month after receiving Wells notices.
They are Robert B. Pollock, president and chief executive officer; Philip Bruce Camacho, executive vice president and chief financial officer; and Adam Lamnin, executive vice president and chief financial officer of Assurant Solutions/Assurant Specialty Property.
The company said it continues to cooperate with the SEC in its investigation and the board is continuing its own investigation.
Assurant said the investigation involves a catastrophe reinsurance contract it had with one reinsurer that commenced over a decade ago, expired in 2004 and was not renewed.
Taking over for the key executives are Kerry Clayton, interim CEO; Mike Peninger, interim CFO; and John Roberts, interim CEO of Assurant Employee Benefits.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.