Assurant’s business expansions driving growth

Assurant, which has a large presence in Clark County, reported a net income of $153.6 million during its third quarter of this fiscal year.

The global provider of risk management products and services, with offices in Springfield, recently released its third quarter earnings for 2021, which tracked a three-month period that ended in September.

This year’s third quarter results represented an increase from a net income of $88 million that was reported during the same period last year.

The growth seen for this fiscal year’s third quarter was driven by ongoing expansion in Assurant’s Global Automotive and Connected Living businesses, according to the company’s Chief Executive Officer Alan Colberg.

He said those expansions lead to double-digit growth in the quarter.

Assurant president Keith Demmings said that “our performance year-to-date underscores the momentum of our businesses and ability to drive consistent, above-market profitable growth over the long term.”

Colberg is slated to retire at the end of this year and Demmings is expected to succeed him as CEO of Assurant.

“As incoming CEO, I see a clear and compelling path to build on our success as we further unlock the potential of our talent and prioritize strategic investments to drive even greater innovation and a superior customer experience,” Demmings said.

Net operating income for this quarter, excluding reportable catastrophes, went up by 4% to $162.1 million when compared to the same period last year, which saw a net operating income of $156.4 million.

When factoring in reportable catastrophes, net income for this quarter totaled at $84.1 million compared to the $69.4 million reported during the same quarter in 2020.

Assurant incurred $78 million of reportable catastrophes in third quarter 2021, compared to $87 million in third quarter 2020.

Net operating income in Global Lifestyle went up to $124 million, when compared to the $106 million reported in the third quarter of 2020, due to growth across Global Automotive and Connected Living.

Global Automotive’ s performance was primarily driven by global growth across distribution channels, according to Assurant.

Higher earnings in Connected Living were led by mobile, mainly from subscriber growth in North America, higher contributions from Asia Pacific and an increase in trade-in volumes.

Assurant has a large presence in Clark County and its Springfield location provides operational support to customers and clients associated with Global Housing segment.

It employs approximately 1,600 people in Clark County. That includes those working virtually or on-site during the coronavirus pandemic.

Net operating income in Global Housing decreased to $3.2 million this quarter when compared to $13.1 million in the third quarter of 2020.

Third quarter 2021 included $78 million of reportable catastrophes primarily related to Hurricane Ida, compared to $87 million of reportable catastrophes in third quarter 2020, according to Assurant.

About the Author