Moody's: Assurant notes Baa2

Moody's Investors Service said it assigned Baa2 ratings to Assurant, Inc.'s $350 million of senior notes due 2018 and $350 million of senior notes due 2023. The outlook is stable.

Assurant plans to use the proceeds to repay $500 million of 5.63% senior notes due February 2014 and for general corporate purposes.

According to Moody's, Assurant's rating is supported by diversified revenues and earnings from the combined P&C and life/employee benefits/health-care insurance operations, strong profitability, significant holding company liquidity and solid financial flexibility.

Somewhat offsetting these strengths are Assurant's substantial level of catastrophe exposure (particularly gross of reinsurance) from its lender-placed homeowners line, exposure to adverse changes in the legal and regulatory environment given its niche products, particularly its lender-placed insurance products, and significant financial leverage, the agency said. The proposed debt offering increases the group's pro forma adjusted financial leverage to about 24% from just over 21% at the end of 2012.

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