Assurant Reports Second Quarter 2017 Financial Results
"Overall results in the second quarter were in line with our expectations, despite higher non-catastrophe claims," said Assurant President and Chief Executive Officer
"We've made continued progress toward achieving our 2017 commitments, including capital deployment," he continued. "And we remain confident that our ongoing transformation is establishing a firm foundation for profitable growth in 2018 and beyond."
Second Quarter 2017 Consolidated Results
* Net income was
* Net operating income4 increased to
* Excluding catastrophe losses, net operating income for second quarter 2017 totaled
* Net earned premiums, fees and other income from the
Reportable Segments
* Net operating income was generally level with second quarter 2016, reflecting
* Net earned premiums, fees and other income decreased in second quarter 2017, primarily due to expected lower placement rates in lender-placed insurance and reduced demand for originations and field services in mortgage solutions. Growth in multi-family housing and from new lender-placed clients partially offset the decline.
* Combined ratio for risk-based businesses(a) was 87.0 percent in the second quarter 2017 compared to 87.3 percent in prior-year quarter. This improvement resulted from lower reportable catastrophe losses, partially offset by higher frequency and severity of non-catastrophe claims, as well as expenses to support new lender-placed clients.
* Pre-tax margin for fee-based, capital-light businesses(b) was 11.7 percent, up from 11.2 percent from the second quarter of 2016. The improvement resulted from growth in multi-family housing, largely through expansion within our affinity channels. This increase was partially offset by ongoing market weakness and lower client volumes in mortgage solutions. Actions taken to lower expenses in these businesses helped mitigate declines.
(a) Combined ratio for the
(b) Pre-tax margin for the
Global Lifestyle
* Net operating income decreased in second quarter 2017 due to an
* Net earned premiums, fees and other income decreased compared to the prior-year period entirely due to a change in program structure in fourth quarter 2016 for a large service contract client in Connected Living. Excluding this
* Combined ratio for risk-based businesses(a) increased to 97.0 percent from 95.8 percent in second quarter 2016, driven largely by less favorable experience in vehicle protection.
* Pre-tax margin for fee-based, capital-light businesses(b) was 6.4 percent, up from 3.2 percent in second quarter 2016. The increase was driven in part by the change in client program structure. Higher contributions from Connected Living and ongoing expense management efforts also contributed to the improvement.
(a) Combined ratio for the Global Lifestyle risk-based businesses is equal to total policyholder benefits, losses and expenses, divided by net earned premiums and fees and other income, for vehicle protection, credit and other businesses.
(b) Pre-tax margin for the Global Lifestyle fee-based, capital-light businesses is equal to income before provision for income taxes divided by total net earned premiums, fees and other income, for Connected Living, including mobile, extended service contracts and assistance services.
* Net operating income increased primarily due to higher fee and investment income, partially offset by higher expenses.
* Net earned premiums, fees and other income was up, driven mainly by increased volume in
* Face sales totaled
* Net operating loss5 declined compared to second quarter 2016 primarily due to lower taxes and fees associated with
Capital Position
* Corporate capital approximated
* Dividends from the businesses paid to the holding company in second quarter 2017 totaled
* Share repurchases and dividends totaled
See details here (https://www.assurant.com/NewsRoom/AllNews/NewsReleases/2017/August/assurant-reports-second-quarter-2017-financial-results)
Earnings Conference Call
The second quarter 2017 earnings conference call and webcast will be held
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