Assurant Q3 profit surges on growth in global housing unit, investment returns
5:31 pm Tuesday, October 31st, 2023
(Reuters) – Insurer Assurant reported a surge in third-quarter adjusted profit on Tuesday, helped by the strong performance of its global housing unit and higher investment returns, sending shares up 2.7% in aftermarket trading.
Assurant’s global housing business, which offers lender-placed insurance, multi-family housing and mortgage services, posted adjusted EBITDA of $165.1 million in the quarter, compared with a loss of $38.5 million a year earlier.
“Global Housing’s top-line momentum and improving loss experience combined with Global Lifestyle’s growing U.S. mobile business produced significant year-over-year earnings growth,” said CEO Keith Demmings.
Meanwhile, a recovery in global capital markets this year on hopes the U.S. Federal Reserve is nearing the end of its rate-hike cycle, has also boosted profits for insurers, who invest a chunk of their income across different assets.
Assurant’s net investment income rose to $125.5 million in the third quarter, compared with $83.5 million a year earlier.
The insurer’s total revenue was $2.77 billion in the quarter versus roughly $2.55 billion a year earlier.
On an adjusted basis, Assurant reported a profit of $4.29 per diluted share in the three months ended Sept. 30, compared with $1.01 a year earlier.
(Reporting by Manya Saini and Pritam Biswas in Bengaluru; Editing by Krishna Chandra Eluri)
