Crash involving semi blocks lanes on I-70 EB in Mad River Twp. 

Major Springfield employer’s income down 20 percent due to hurricanes

Assurant, one of Springfield’s largest employers, reported costs related to natural disasters including hurricanes and wildfires drove its operating income down about 20 percent last year.

But company officials said they had a solid fourth quarter and the underlying results exceeded expectations, excluding losses from the natural disasters.

Assurant’s Global Housing Division, based in Springfield, provides insurance and related services in partnership with financial institutions and other major clients. The Global Housing Division has more than 1,900 workers here and it said last year it planned to hire as many as 130 more employees to handle additional work related to serving customers affected by the hurricanes.

RELATED: Clark County company, Assurant, hiring for 100 jobs

“In 2017, we surpassed our initial expectations for the year and delivered strong growth in net operating income and earnings per share, on a year-over-year basis, excluding catastrophic losses,” said Alan Colberg, the company’s president and CEO in a statement. “Consistent with our capital management commitment, we also completed the return of $1.5 billion of capital to shareholders since 2016.”

The company reported net operating income of $220 million last year, down about 20 percent compared to the nearly $277 million in 2016, in part due to higher reportable catastrophes related to Hurricanes Harvey, Irma and Maria. The Global Housing Division also noted losses from wildfires in California in the fourth quarter last year.

The decrease was partially offset by a one-time reduction of net deferred tax liabilities related to the recent federal tax cut package.

MORE: Hospital top Clark County employer, reflects statewide trend

Excluding catastrophic losses, Assurant reported a total of about $413 million in net operating income, up about 9 percent compared to 2016. Improved results from the company’s Global Lifestyle division and lower corporate expenses contributed to an improved bottom line, excluding the catastrophes.

The Global Housing Division reported $97.4 million in net operating income last year, down 48 percent compared to $189 million in 2016.

Assurant reported company-wide fourth-quarter income spiked from $27 million in 2016 to just shy of $100 million at the end of last year.

“This was driven primarily by lower reportable catastrophes and the absence of lender-placed regulatory expenses,” the company said in a press release.

MORE BUSINESS NEWS: Springfield business expo opens to public for first time

Assurant expects a solid year in 2018, Colberg said. The business announced an agreement in October last year to acquire The Warranty Group from TPG Capital in a transaction valued at $2.5 billion. That agreement is expected to close in the second quarter of this year.

The company also expects income to increase between 10 and 14 percent this year compared to 2017, excluding reportable catastrophe losses, and reflecting a lower effective tax rate.

“We expect to build on this solid foundation in 2018, as we close our acquisition of The Warranty Group and leverage our expanded scale and expertise in key Housing and Lifestyle markets to sustain long-term, profitable growth at Assurant,” Colberg said.

Reader Comments ...

Next Up in Business

Recalls: Children’s clothing, fitness products and more
Recalls: Children’s clothing, fitness products and more

Parents, fitness buffs and those prone to bug bites should check to see if they have the potentially dangerous products being recalled this week. Infant and toddler coveralls sold under the name ED by Ellen DeGeneres are under recall because the bunny applique can come off and pose a choking hazard for your child, according to the Consumer Product...
Ohio thieves target these vehicles more than any other
Ohio thieves target these vehicles more than any other

The National Insurance Crime Bureau has released its annual “Hot Wheels” report, identifying the 10 most stolen vehicles in the United States — and in Ohio. The report examines vehicle theft data submitted by law enforcement to the National Crime Information Center and determines the vehicle make, model and model year most reported...
The stage is set: UD ready for first gubernatorial debate tonight
The stage is set: UD ready for first gubernatorial debate tonight

After years of discussions and weeks of work, now it comes down to just a few hours: The University of Dayton will host the first 2018 Ohio gubernatorial debate tonight at Daniel J. Curran Place. Eric Spina, UD president, sounded a confident note this morning, saying the university community is ready. “For many years, we have been letting folks...
Health care a top ballot box concern for older Ohioans
Health care a top ballot box concern for older Ohioans

The majority of Ohioans over the age of 50 say concerns about health care will affect their vote this fall. About 81 percent said health care is a “very important” issue when it comes to their vote for Congressional candidates this fall. About 80 percent said Social Security is a very important issue and 76 percent said Medicare is, according...
760-mph hyperloop from Ohio to Chicago moves closer with new regulations
760-mph hyperloop from Ohio to Chicago moves closer with new regulations

An exceptionally fast transportation system may be a step closer to Ohio. Hyperloop Transportation Technologies (HyperloopTT) and German insurance company Munich Re said Monday that a set of core safety requirements and certification guidelines for the fledgling mode of transportation have been created. The hyperloop is expected to transport pods of...
More Stories