Assurant beats third-quarter profit estimates on Global Housing unit growth
Nov 5 (Reuters) -Insurer Assurant AIZ.N reported a better-than-expected third-quarter profit on Tuesday, driven by growth in its global housing segment and higher investment returns.
The company's global housing unit, which offers lender-placed homeowners, manufactured housing and flood insurance, posted net earned premiums, fees and other income of $603.8 million, a 9% jump from the previous year.
The unit benefited from strong performance in its homeowners' business, thanks to growth in policies in-force and higher average premiums, the company said.
Assurant's net investment income jumped to $129.7 million in the quarter ended Sept. 30 — from $125.5 million a year earlier.
Risk-averse insurers allocate a major chunk of their investment portfolio to bonds, which return better yields in a high interest rate environment.
The New York-based insurer now expects annual adjusted earnings per share, excluding reportable catastrophes, to increase in the mid- to high-teens range.
The insurance sector at large has benefited from growing hopes of a soft landing for the economy and a strong labor market, which has revived spending on insurance policies.
On an adjusted basis, Assurant earned $3.00 per share, beating Wall Street expectations of $2.52 per share, according to estimates compiled by LSEG.
Shares of the company have risen 14.6% so far this year, underperforming a 21.2% gain in the benchmark S&P 500 .SPX index.
Reporting by Atharva Singh; editing by Alan Barona
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
