Assurant Q2 2020 Earnings Report
Key Takeaways
Assurant reported strong second-quarter results, demonstrating business resilience and stability. Net income increased by 24 percent, and net operating income, excluding reportable catastrophes, rose by 24 percent. The company reinstated and raised its 2020 outlook, expecting 12 to 16 percent growth in net operating income per share, excluding catastrophe losses.
Net income of $173.5 million, or $2.81 per share, up 24 percent and 27 percent, respectively
Net operating income of $169.3 million, or $179.3 million, excluding reportable catastrophes, up 15 percent and 24 percent, respectively
Net operating income per diluted share of $2.75, or $2.90, excluding reportable catastrophes, up 18 percent and 27 percent, respectively
$357 million of holding company liquidity available at quarter end
Assurant
Assurant
Forward Guidance
The company expects Assurant net operating income per diluted share, excluding catastrophe losses, to increase 12 percent to 16 percent from $9.21 in 2019.
Positive Outlook
- Driven primarily by profitable growth
- Ongoing expense discipline
- Growth in Connected Living
- Improved results in specialty and other
- Growth in multifamily
Challenges Ahead
- Material change to consumer behavior
- Access to distribution channels
- Impact to financial markets from a resurgence of COVID-19 cases
- Continued declines in legacy Global Financial Services and investments to support growth
- Loss of loans from a financially insolvent client and lower real estate owned volumes in lender-placed