Assurant, Inc., a leading global provider of lifestyle and housing solutions, recorded a 24% increase in net income in the second-quarter of 2020 to $173.5 million, as its Global Housing segment reported improved profitability.
Despite the improvement, the company’s net income was somewhat offset by both direct and incremental expenses incurred as a result of the COVID-19 pandemic, while Q2 2019 included an $11.4 million after-tax impairment tied to a prior acquisition in Global Housing.
Profitability of $85.4 million in Global Housing in the quarter, alongside continued mobile growth in Global lifestyle, with operating income of $121.8 million, contributed to the firm’s overall improved earnings.
Net operating income also rose in Q2, from $147.7 million in 2019 to $169.3 million in 2020. During the second-quarter of this year, Assurant booked $10 million in reportable catastrophe losses, compared to $3.1 million of favourable development in the prior year quarter.
Overall, net earned premiums, fees and other income from the Global Housing, Global Lifestyle, and Global Preneed operating segments amounted to $2.31 billion in Q2 2020, which is a decline of 3% from the second-quarter of last year.
The company’s President and Chief Executive Officer (CEO), Alan Colberg, commented: “Our second quarter results demonstrated the resiliency of our business and the stability of our large, installed customer base, particularly in Global Lifestyle, while also benefitting from favorable non-catastrophe loss experience.
“Given our strong performance year-to-date and greater visibility into our expected business performance for the second-half of the year, we’ve reinstated and raised our 2020 outlook to 12 to 16 percent growth in net operating income per share, excluding catastrophe losses.”