US specialty insurer Assurant, Inc. has reported a GAAP net income of $68.1 million for the fourth quarter of 2022, a 45% decrease compared to the $124 million reported in the same period last year.
The company noted that the decline was primarily due to a $41.8 million after-tax charge related to the company’s previously announced restructuring plan, as well as net unrealized losses from Assurant Ventures.
At the same time, Assurant’s GAAP net income for the full-year 2022 stands at $276.6 million, a 54% decrease compared to $602.9 million from the same period last year.
According to the insurer, the decline was primarily driven by a net decrease in unrealized gains to unrealized losses from Assurant Ventures, net realised losses from sales of fixed maturity securities in 2022, and a decrease from non-core operations.
Net earned premiums from the Global Lifestyle and Global Housing segments totaled $2.54 billion in Q4 2022 compared to $2.48 billion in Q42021, up 3% or 5% on a constant currency basis, mainly from Global Automotive growth within Global Lifestyle and increases in lender-placed within Global Housing.
For the full-year 2022, the company reported that the net earned premiums from the Global Lifestyle and Global Housing segments totaled $9.95 billion compared to $9.68 billion for the prior year period, up 3%, or 4% on a constant currency basis, primarily due to Global Automotive growth within Global Lifestyle as well as lender-placed growth within Global Housing.
Assurant President and CEO Keith Demmings commented: “In 2022, we continued to execute on our vision to be the leading global business services provider supporting the advancement of the connected world. We delivered high single-digit growth in Global Lifestyle, while taking decisive actions in Global Housing to simplify our business and improve financial results,” said
“I am especially pleased with our strong fourth quarter segment results, which demonstrate our focus on driving outperformance over the long term. We also acted with urgency to mitigate the impact of global macroeconomic headwinds by streamlining our real estate footprint and increasing efficiency in our organisational structure, all while strengthening the business for the future through targeted investments in key product offerings and capabilities to sustain our competitive advantage.”
He added: “For 2023, we expect our business to grow Adjusted EBITDA by low single-digits, excluding catastrophe losses, as we realise the benefits from our Global Housing transformation and continue to expand market share within Global Lifestyle. While we expect macroeconomic headwinds to persist near-term, we remain well-positioned to drive long-term shareholder value.”
