In a move it hopes eases the worries of Shenandoah Life brokers and policyholders, Assurant Employee Benefits announced its intention to reinsure the majority of the company’s group insurance business.

The move is subject to the approval of Virginia’s State Corporation Commission, whose Bureau of Insurance assumed control of the company in February after financial struggles by the Roanoke, Va.-based insurer.

Virginia Insurance Commissioner Alfred W. Gross recently told IFAwebnews.com that a bidding process is underway for companies who may want to buy Shenandoah Life with the goal of a resolution by “the end of the year.”

John Roberts

Assurant, headquartered in Kansas City, Mo., said the reinsurance agreement would indemnify Shenandoah Life for 100% of the covered losses it sustains under its reinsured policies and is net of any other third party reinsurance agreements. Shenandoah Life will continue to administer the group benefits business.

John Roberts, president and CEO for Assurant, said not only does the agreement reflect his company’s “commitment to growing our business,” but he hopes it “instills confidence in Shenandoah Life brokers and policyholders that we are backing their business.”

“As a part of Assurant, Inc., we offer the stability and financial strength of a Fortune 500 company,” Roberts said in a statement.

Shenandoah Life is a life and health insurer writing primarily life, annuities and dental insurance. The company is licensed to do business in 31 states and Washington, D.C., and at the time of its receivership had more than 230,000 policies in force.