If one division is sabotaging an otherwise profitable firm, it's often best to simply eliminate the lagging segment. When the odds of improvement are questionable, management probably won't be doing shareholders any favors by attempting a costly turnaround.
Such moves may seem difficult, but in the end, management will have much more latitude to invest resources in segments with higher returns.

It's a strategy that New York City-based Assurant, Inc. (NYSE: AIZ) is wisely pursuing with its struggling health insurance division.

In April, the broad-based insurer announced plans to sell or close the division, Assurant Health, which has been unable to compete with large health insurance providers since the Affordable Care Act, or ACA, took effect. Like many other smaller industry players, Assurant couldn't efficiently handle ACA-related administrative costs, nor could it comply with onerous requirements regarding the allocation of premiums.