Assurant (AIZ) Reports Weaker Prelim. Q3 Solutions, Specialty Property Net Income
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Assurant (NYSE: AIZ) disclosed the following on Tuesday:
|Results of Operations and Financial Condition.|
Preliminary Third Quarter 2016 Results
Assurant, Inc. (“Assurant”) today announced preliminary third quarter 2016 consolidated net income in the range of $127 million to $157 million compared to a net loss of $7 million in the third quarter 2015, and net operating income in the range of $54 million to $66 million compared to $104 million in third quarter 2015.
Net Operating Income1
|Actual Q3 2015|
Assurant Specialty Property
Corporate & Other2
Net Operating Income
Third quarter 2016 results declined year-over-year primarily due to $32 million to $34 million of after-tax reportable catastrophe losses, net of reinsurance, related to flooding in Louisiana and the ongoing normalization of lender-placed insurance in the Assurant Specialty Property segment. In the third quarter 2015, there were no reportable catastrophe losses.
Net operating income for the Assurant Solutions segment decreased year-over-year due to lower contributions from mobile, legacy extended service contracts and credit insurance. Mobile results reflected lower than expected volumes from repair and logistics and higher expenses related to certain technology systems.
As of September 30, 2016, corporate capital stood at approximately $875 million. Excluding the company’s $250 million risk buffer, deployable capital was approximately $625 million. During the third quarter 2016, the company repurchased $236 million of common stock. Dividends to shareholders totaled $30 million for the period.
Based on current market conditions, for full-year 2016, the company now expects:
|•||Assurant Solutions’ net operating income to decline modestly from 2015. Growth from new and existing mobile programs in 2016 is not expected to offset declines in legacy extended service contracts, credit insurance and the loss of the tablet program. Net earned premiums and fees to increase driven by growth in mobile subscribers and vehicle service contracts, partially offset by lower service contract revenue from legacy North American retail clients and continued declines in credit insurance.|
Based on current market conditions, for full-year 2016, the company continues to expect:
|•||Assurant Specialty Property’s net earned premiums and net operating income to decrease from 2015 levels. Results to be affected by the ongoing normalization of lender-placed insurance business partially offset by increased efficiencies and related expense savings initiatives. Multi-family housing and mortgage solutions businesses to expand via market share gains. Overall results to reflect catastrophe losses including claims from Hurricane Matthew, a fourth quarter 2016 catastrophe event.|
|•||Corporate & Other full-year net operating loss3 to approximate $70 million.|
Assurant will release final 2016 third quarter results on Tuesday, October 25, 2016, after the market closes, with the news release available on Assurant’s website at www.assurant.com.
This Current Report is being furnished and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into any of Assurant’s filings under the Securities Act of 1933, as amended, or the Exchange Act, unless expressly set forth as being incorporated by reference into such filing.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- American Airlines (AAL) Nov. Traffic Declines 0.2%, Capacity Up 0.1%
- AstraZeneca (AZN) Says FDA Accepts First BLA for Durvalumab in Bladder Cancer with Priority Review
- Marriott Vacations Worldwide (VAC) Raises Quarterly Dividend 16.7% to $0.35; Changes Fiscal Year
Create E-mail Alert Related CategoriesCorporate News, Guidance, Hot Corp. News, Hot Guidance
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!