Assurant (NYSE: AIZ) reported Q2 EPS of $2.75, $0.66 better than the analyst estimate of $2.09. Revenue for the quarter came in at $2.47 billion versus the consensus estimate of $2.6 billion.

2020 Company Outlook

• The company’s outlook for 2020 is based on its current assumptions, estimates and expectations regarding the impacts of COVID-19 on its future results. The outlook assumes a continuation of current business trends and does not take into account a material change to consumer behavior, access to distribution channels or impact to financial markets from a resurgence of COVID-19 cases.
• For full-year 2020, the company expects:
• Assurant net operating income per diluted share, excluding catastrophe losses7, to increase 12 percent to 16 percent from $9.21 in 2019. This will be driven primarily by profitable growth, as well as ongoing expense discipline, across all business segments. Mandatory convertible shares are expected to be dilutive for the year versus anti-dilutive in 2019.
• Double-digit growth in net operating income, excluding catastrophes, mainly driven by Global Lifestyle and Global Housing. Within Global Lifestyle, earnings growth expected to be from Connected Living, partially offset by continued declines in legacy Global Financial Services and investments to support growth. Global Housing earnings, excluding catastrophe losses, to expand, mainly from improved results in specialty and other, as well as growth in multifamily. Growth to be partially offset by the previously disclosed loss of loans from a financially insolvent client and lower real estate owned volumes in lender-placed. Continued pressure from foreign exchange and lower investment income are also expected to impact results.
• Net operating income for the second-half of 2020 is expected to be lower than the first- half of 2020, reflecting more normalized claims activity across most products, the absence of approximately $16 million in one-time benefits in Global Lifestyle recorded in the first half of 2020, of which $4.2 million occurred in the second quarter and typical mobile seasonality.
• Corporate and Other full-year net operating loss7 to be in the range of $86 to $90 million reflecting reduced investment income primarily from lower yields partially offset by lower general expenses. Interest expense and preferred dividends are expected to be approximately $81 million and $19 million, respectively.
• Business segment dividends from Global Lifestyle, Global Housing and Global Preneed to approximate segment net operating income, including catastrophe losses. This is subject to the growth of the businesses, rating agency and regulatory capital requirements, and investment portfolio performance.
• Capital to be deployed to support business growth, fund investments and return capital to shareholders in the form of share repurchases and dividends, subject to Board approval and market conditions.

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