Assurant, one of Clark County’s largest employers, reports slight gain in Q1 earnings

The Springfield Operations Center for Assurant Specialty Property. Staff photo by Bill Lackey
The Springfield Operations Center for Assurant Specialty Property. Staff photo by Bill Lackey

Assurant, one of Clark County’s largest employers, reported a slight increase in net operating income in the first quarter this year.

The company reported net operating income of about $107 million, a roughly one percent increase compared to the same period last year. The company reported costs of about $7.4 million related to natural disasters for the quarter. Excluding those costs, company officials said earnings were up about 8 percent compared to the first quarter of 2017.

“We are pleased with our first quarter 2018 results, which were in line with our expectations,” said Alan Colberg, president and CEO of the company.

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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 1,970 workers here, including many who work from their homes, according to the latest available information from the company.

The Global Housing Division reported earnings of $71.2 million, about a 15-percent increase compared to the first quarter of last year.

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Company officials attributed the results to underlying growth and in part to a lower effective tax rate related to last year’s federal tax legislation. The gains were partially offset by an increase in costs related to natural disasters in the Global Housing Division.

Assurant reported costs of about $7.4 million related severe winter storms in the Northeast U.S. in the first quarter this year, compared to about $600,000 for the first quarter last year.

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“The quarter benefited from the lower effective U.S. tax rate and modest underlying profitable growth in key businesses such as mobile and multi-family housing, despite higher corporate expenses and catastrophe losses,” Colberg said.

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Based on current market conditions, the company said it expects to see an increase of between 10 and 14 percent in net operating income compared to last year. The company attributed its projection to modest growth and a lower effective tax rate.

BY THE NUMBERS

$107 million: Net operating income for Assurant in the first quarter of this year

$7.4 million: Costs related to natural disasters for the quarter

$71.2 million: Earnings of the Global Housing Division