Assurant (AIZ) Reports Q4 EPS of 97c, Offers Outlook

Assurant (NYSE: AIZ) reported Q4 EPS of $0.97, may not compare to the analyst estimate of $1.51. Revenue for the quarter came in at $2.55 billion versus the consensus estimate of $2 billion.

Based on current market conditions, for full-year 2016, the company expects:

Assurant Solutions’ net earned premiums and fees and net operating income to increase from 2015 levels. Overall results expected to improve in the second half of the year driven by new mobile programs, improved international profitability and additional expense initiatives. Results to be affected by foreign exchange volatility, lower service contract revenue from legacy North American retail clients and continued declines in credit insurance.
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 expense savings initiatives. Multi-family housing and mortgage solutions businesses to expand via market share gains. Overall results to be affected by catastrophe losses.
Capital to be deployed through a combination of share repurchases, common stock dividends, reinvestments in the business and acquisitions in Housing and Lifestyle, subject to market conditions and other factors. Business segment dividends from Assurant Solutions and Assurant Specialty Property to approximate segment net operating income, subject to the growth of the businesses, rating agency and regulatory capital requirements. Sale of Assurant Employee Benefits to provide approximately $1 billion of net proceeds, including capital releases.
Corporate & Other full-year net operating loss to approximate $70 million. Expense savings actions to offset residual expenses associated with Assurant Employee Benefits and Assurant Health.

Based on the announced exit from the health insurance market, the company expects:

Assurant Health to substantially complete the process to exit the health insurance market in 2016. During the remainder of the wind down, the company to incur up to $40 to $50 million pre-tax of additional exit-related charges, as well as certain overhead expenses that are excluded from the premium deficiency reserve accrual. Assurant Health dividends expected to approximate $475 million, subject to ultimate development of claims, actual expenses needed to wind down operations, recoveries from ACA-risk mitigation payments and regulatory approval.

For earnings history and earnings-related data on Assurant (AIZ) click here.

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