Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  JPMorgan Chase & Co.    JPM

Delayed Quote. Delayed  - 10/26 10:00:14 pm
69.13 USD   +0.48%
02:31a JPMORGAN CHASE : Jamie Dimon Doesn’t Want His Bankers Reading ..
10/26DJDow Industrials Rise Despite Drag From Apple
10/25DJMonte dei Paschi to Cut Jobs, Sell Units in Bid to Win Support fo..
News SummaryMost relevantAll newsSector news 

Assurant to Pay $14 Million Settlement to End New York Probe

share with twitter share with LinkedIn share with facebook
share via e-mail
03/21/2013 | 06:02pm CEST

-- Assurant agrees to lower cost of home insurance

-- Company does not admit, deny wrongdoing

-- State: J.P. Morgan Chase profited from insurance deals with Assurant

(Updates throughout, including Assurant comment and new details)

By Leslie Scism and Erik Holm

Assurant Inc. (>> Assurant, Inc.), the largest seller of "force-placed" home insurance in the U.S., agreed to pay a $14 million penalty and provide restitution to some New York homeowners under an agreement with state regulators to settle allegations of overpriced insurance and excessive profits.

Gov. Andrew Cuomo on Thursday said the pact addresses an "intricate web of relationships between insurers and banks that pushed distressed families over the foreclosure cliff."

The policies are "forced" on borrowers who drop their required, standard homeowners coverage, which protects banks' collateral. Struggling borrowers may seek to save money by canceling their original policies that are required when they take out a mortgage, unaware they will be hit by much-costlier forced coverage if they fail to restore coverage on their own.

The settlement follows hearings by the New York Department of Financial Services last year that grilled Assurant, other insurers and their banking partners about their relationships. The state maintained those relationships have been highly profitable for the companies at the expense of consumers.

In one example cited by the state in its Thursday announcement, Assurant allowed a bank-owned reinsurance company to reap profits from the insurance transactions. The New York regulators said J.P. Morgan Chase & Co. (>> JPMorgan Chase & Co.) "has made approximately $600 million since 2006" through such transactions with Assurant.

A J.P. Morgan spokeswoman didn't immediately respond to requests for comment.

Under the terms of the agreement, Assurant agreed to lower the cost of many of the home-insurance policies it sells in the state and to eliminate "improper and unfair practices" that the state said helped Assurant inflate premiums. These include paying commissions to banks or mortgage servicers on the policies they provide and using reinsurance companies affiliated with the mortgage companies.

Assurant agreed to provide restitution to some homeowners who were harmed by its practices, including homeowners who were foreclosed on because of the cost of the coverage, the state said.

In a news release, Assurant noted it neither admitted nor denied any wrongdoing in the settlement, and said it was modifying "certain lender-placed business practices consistent with new regulations expected to be issued by the NYDFS that will apply to all New York-licensed lender-placed insurers of properties in the state."

The state launched its investigation into the force-placed insurance industry in the fall of 2011. The investigation revealed that the premiums charged to homeowners for the coverage can be two to 10 times higher than premiums for voluntary insurance, "despite the fact that force-placed insurance provides far less protection for homeowners than voluntary insurance," state officials said in a news release Thursday.

"Insurers and banks built a network of troubling relationships and payoffs that helped drive premiums sky high," said Benjamin Lawsky, superintendent of the state's Department of Financial Services. "Those improper practices created significant conflicts of interest and saddled homeowners, taxpayers, and investors with millions of dollars in unfair and unnecessary costs."

The insurers and banks have argued that the premiums are appropriate given the costs and risk they incur. They maintain the prices reflect that they often insure vacant properties and do so without inspections.

Gene Mergelmeyer, president and chief executive officer of Assurant's specialty-property business, said in the statement: "With matters resolved with the New York Department of Financial Services, we look forward to filing (for regulatory approval) our next generation lender-placed product as we continue to meet the needs of our clients and customers in New York with outstanding service and support."

Assurant shares were off 2% to $43.67 in recent trading. The shares have jumped nearly 26% so far this year after a federal regulator rejected an attempt by mortgage-finance giant Fannie Mae to lower costs for the insurance by injecting competition into the market.

Assurant and Australia's QBE Insurance Group Ltd. dominate the force-placed market in the U.S. Last year, Fannie lined up a consortium of insurers led by Zurich Insurance Group AG that would have offered lower-cost coverage. But the Federal Housing Finance Agency rebuffed that effort last month.

In its release, New York said it expected other force-placed insurers to "step up to the plate now" and put in place the changes agreed to by Assurant.

Write to Leslie Scism at leslie.scism@wsj.com and Erik Holm at erik.holm@dowjones.com

Stocks mentioned in the article : Assurant, Inc., JPMorgan Chase & Co.
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on JPMORGAN CHASE & CO.
02:31a JPMORGAN CHASE : Jamie Dimon Doesn’t Want His Bankers Reading The Notoriou..
10/26DJDow Industrials Rise Despite Drag From Apple
10/25DJMonte dei Paschi to Cut Jobs, Sell Units in Bid to Win Support for Rescue Pla..
10/25 HNA Takes Stake in Hilton
10/24 JPMORGAN CHASE & CO : Other Events, Financial Statements and Exhibits (form 8-K)
10/24DJBANK OF NEW YORK MELLON : Fed's Powell Says Central Bank Will Raise Expectations..
10/24 Regulators taking another look at costs of Wall Street safety rule
10/24 JPMORGAN ELECT : JP Morgan Elect Misses Benchmark On Brexit Uncertainty
10/24 JPMORGAN CHASE : JP Morgan to sell clearing arm for LSE
10/23 Italy's front line in fight to save banks - a storage room
More news
Sector news : Banks - NEC
04:38a DEUTSCHE BANK : to sell Mexican units to local peer InvestaBank
03:07aDJBANK OF CHINA : BOC Hong Kong Plan to Dispose of 70.49% Stake in Chiyu Banking C..
02:50aDJBOC HONG KONG : January-September Operating Profit Before Impairment Up 2.0% on ..
10/26DJNATIONAL AUSTRALIA BANK : Profit Hit by Losses on Asset Sales
10/26 BANK OF AMERICA : Morgan Stanley to keep commission-based IRAs for wealth manage..
More sector news : Banks - NEC
News from SeekingAlpha
10/26 BARCLAYS : Too Cheap To Ignore
10/25 BREXIT : Hard, Soft Or Scrambled - Barclays Is A Buy
10/25 FICC Is Back And Goldman Will Be The Winner
10/25 My Dividend Growth Portfolio - Q3 2016 Summary
10/21 What To Buy After U.S Elections And December Interest Rate Hike; Longs & Shor..
Financials ($)
Sales 2016 97 447 M
EBIT 2016 36 113 M
Net income 2016 21 312 M
Debt 2016 -
Yield 2016 2,72%
P/E ratio 2016 11,76
P/E ratio 2017 11,00
Capi. / Sales 2016 2,55x
Capi. / Sales 2017 2,48x
Capitalization 248 504 M
More Financials
Duration : Period :
JPMorgan Chase & Co. Technical Analysis Chart | JPM | US46625H1005 | 4-Traders
Full-screen chart
Technical analysis trends JPMORGAN CHASE & CO.
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus OUTPERFORM
Number of Analysts 32
Average target price 72,1 $
Spread / Average Target 4,9%
Consensus details
EPS Revisions
More Estimates Revisions
James Dimon Chairman, President & Chief Executive Officer
Matthew E. Zames Chief Operating Officer
Marianne Lake Chief Financial Officer & Executive Vice President
Dana S. Deasy Chief Information Officer
Lee R. Raymond Lead Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
JPMORGAN CHASE & CO.4.20%248 504
WELLS FARGO & CO-15.89%230 682
More Results