Will Assurant’s New CEO Take AIZ Stock to New Highs?

Assurant Inc. (AIZ) yesterday announced that its board of directors has appointed Alan B. Colberg as president effective immediately and as chief executive officer and a member of the board effective Jan 1, 2015. Colberg previously held the position of executive vice president, marketing and business development.

Colberg has replaced Robert B. Pollock who publicly announced his plan to retire in May 2014, after serving the company for 33 years. Under Pollock, Assurant ventured into new businesses such as mobile protection, multi-family housing and voluntary worksite benefits. He also helped the company to expand in Latin America and strengthened its European operations. Under his guidance, book value – a measure of net worth – of the company grew at an average annual rate of 11% and more than $4 billion was generated in operating cash flow.

Assurant is facing challenges in its lender-placed home insurance products, which provides coverage to foreclosed homes since it continues to suffer from regulatory investigations and a recovering housing market.

We feel that during this trying time, there is no better person than Colberg to lead Assurant. Colberg, with his experience of nearly 25 years in the financial services industry, is properly suited to spearhead the company’s operations.

Last week, the insurer said that its annualized premium revenue and fees will decline by as much as approximately $80 million since one of its clients at the specialty property unit plans to transfer some business.

In August, the company made concurrent appointments of Christopher J. Pagano as the new chief financial officer and Eric Greenman as executive vice president and chief investment officer.

We believe that the new CEO will continue to steer this great company to new milestones with a stable team of talented and experienced individuals.

Assurant carries a Zacks Rank #3 (Hold). Better-ranked stocks include American International Group, Inc. (AIG), Fortegra Financial Corp. (FRF) and Radian Group Inc. (RDN). All these stocks carry a Zacks Rank # 2 (Buy).