Assurant execs on leave after SEC notice

Insurance provider Assurant Inc. put its chief executive and chief financial officer on administrative leave after regulators notified the two executives that they may face civil charges in connection with an accounting probe, according to Crain's New York Business. Chief Executive Robert Pollock and CFO Bruce Camacho received “Wells” notices from the Securities & Exchange Commission related to a probe of loss mitigation products, also known as finite insurance and finite reinsurance. Regulators are investigating whether companies such as Assurant helped clients conceal adverse financial events through these "earnings-smoothing" contracts, which help companies cap financial losses. A Wells notice allows Messrs. Pollock and Camacho an opportunity to respond before the SEC staff make a final decision on whether to move forward with civil enforcement action. Assurant Solutions/Assurant Specialty Property CFO Adam Lamin also received a Wells notice, following a July 5 announcement that Assurant Solutions/Specialty Property employees Michael Steinman and Dan Folse received notices. All three were put on administrative leave. Assurant’s board of directors will meet Wednesday to announce interim successors to Messrs. Pollock and Camacho. The company has been cooperating with the SEC since May 2005, when regulators first subpoenaed documents related to its loss mitigation products. In a statement, Assurant board chairman John Palms said the company would continue to cooperate. Shares of Assurant plunged as much as 16.3% to $49.20 in Tuesday morning trading, prompting analysts at KeyBanc to downgrade the insurer’s shares to “hold” from “buy.”