Assurant (AIZ) Tops Q4 EPS by 15c

Assurant (NYSE: AIZ) reported Q4 EPS of $2.23, $0.15 better than the analyst estimate of $2.08.

• Net income was $134.5 million, or $2.23 per diluted share, compared to fourth quarter 2019 net income of $122.9 million, or $1.98 per diluted share. The increase was primarily driven by the absence of a $32.5 million charge related to Iké in fourth quarter 2019, as well as an increase in net realized gains on investments. This was partially offset by $27.7 million of higher reportable catastrophes and lower legacy Affordable Care Act receivable recoveries compared to the prior year period.
• Net operating income1 decreased to $109.1 million, or $1.82 per diluted share3, compared to fourth quarter 2019 net operating income of $139.9 million, or $2.25 per diluted share, primarily due to higher reportable catastrophes.
• Excluding reportable catastrophes, net operating income2 for fourth quarter 2020 totaled $136.4 million, compared to $139.5 million in the prior year period. The decrease was primarily driven by $27.5 million of lower investment income, reflecting the impact of lower yields and a $12.0 million reduction in income from sales of real estate joint venture partnerships compared to the prior year period. This was partially offset by more favorable non-catastrophe loss experience in Global Housing. Fourth quarter 2020 also included $10.9 million of severance and real estate charges as part of ongoing expense discipline and the evolution of Assurant’s workplace environment.
• Net earned premiums, fees and other income from the Global Lifestyle, Global Housing and Global Preneed segments totaled $2.37 billion compared to $2.42 billion in fourth quarter 2019, reflecting the impact from a previously disclosed mobile program contract change. Absent this change, revenue increased modestly, primarily from growth in Global Lifestyle led by Global Automotive. This was partially offset by declines in Global Housing, mainly due to the expected run-off of our small commercial business and anticipated declines in lender-placed from the previously disclosed financially insolvent client.

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

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