Assurant sees an increase in net income during 2nd quarter

Assurant, which has a large presence in Clark County, reported a net income of $173 million during its second quarter this year, which was driven partly by improved profitability in its Global Housing segment.

The company saw a boost in its net income when compared to the same period in 2019, which was reported as $139.5 million. However, the increase was partially offset due to direct and incremental expenses related to the COVID-19 pandemic, according to a Wednesday news release from the company.

Assurant net operating income during the second quarter this year was $169.3 million, or $2.75 per diluted share. That is an increase from the $147.7 million, or $2.34 per diluted share, reported during the same quarter in 2019.

Assurant incurred $10 million of reportable catastrophes in the second quarter of 2020, compared to $3.1 million of favorable development in the second quarter of 2019.

Net operating income for the Global Housing segment during the second quarter of this year was $85.4 million, an increase from the $71.5 million reported during the same quarter in 2019.

Assurant’s Springfield office provides operational support to customers and clients associated with Global Housing. The New York based company employed approximately 1,600 people in Clark County as of March.

COVID-19 spurred several changes in Assurant’s local operations as a large portion of employees were shifted to remote work early on in the pandemic. Newly hired employees were asked to work remotely until they can be transitioned to working out of the office. Interviews and training were also tweaked in order to be done virtually.

In April, the company announced that it was looking to hire several hundred employees who would either join their Springfield operation or work at two other locations. Those positions included customer care and processing specialist needed to help support customers during the upcoming tornado and hurricane seasons, according to David Blumenthal, a spokesperson for the company.

He added on Wednesday that a large portion of Assurant employees in the area are still working remotely.

An increase in net income as well as net operating income for Assurant during the second quarter, which ended on June 30, was also attributed to continued mobile growth and an increase in mobile subscribers for the company’s Global Lifestyle segment.

Net operating income for that segment was reported as being $121.8 million for the second quarter. It represents an increase when compared to the same quarter in 2019, which had a net operating income of $109.3 million.

“Our second quarter results demonstrated the resiliency of our business and the stability of our large, installed customer base, particularly in Global Lifestyle, while also benefitting from favorable non-catastrophe loss experience,” said Assurant President and CEO Alan Colberg.

“Given our strong performance year-to-date and greater visibility into our expected business performance for the second-half of the year, we’ve reinstated and raised our 2020 outlook to 12 to 16% growth in net operating income per share, excluding catastrophe losses,” he added.

Assurant reported a net income of $150 million during the first quarter of this year, which was down when compared to the $161 million reported during the same period in 2019.

However, the company’s net operating income was up for the first quarter, which ended on March 31, when compared to that period last year, going from $140.6 million to $163.1 million.

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