Assurant, Inc. (NYSE: AIZ), a leading global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases, today reported results for the third quarter ended September 30, 2020.
“Our third quarter 2020 performance further underscores the resiliency and strength of our market-leading lifestyle and housing businesses, and the attractive growth opportunities ahead,” said Assurant President and CEO Alan Colberg. “Given favorable year-to-date loss experience in Global Housing, we are raising our 2020 outlook to 17 to 21 percent growth in net operating income per share, excluding catastrophe losses.”
Colberg added, “With our recently announced acquisition of HYLA Mobile and the evaluation of strategic alternatives for Global Preneed, we are deepening our focus on the many opportunities being driven by the convergence of the connected mobile device, car and home. Combined with our differentiated P&C offerings, we expect to sustain above-market growth and deliver superior cash flow long term.”
Reconciliation of Net Operating Income to GAAP Net Income Attributable to Common Stockholders1
(UNAUDITED) | 3Q | 3Q | 9 Months | 9 Months | |||||||||||
($ in millions, net of tax) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|||
Global Lifestyle | $ |
106.6 |
|
$ |
102.1 |
|
$ |
349.3 |
|
$ |
312.0 |
|
|||
Global Housing |
|
13.1 |
|
|
41.6 |
|
|
172.7 |
|
|
185.8 |
|
|||
Global Preneed |
|
13.2 |
|
|
7.4 |
|
|
39.2 |
|
|
36.1 |
|
|||
Corporate and other |
|
(23.5 |
) |
|
(20.8 |
) |
|
(69.9 |
) |
|
(64.0 |
) |
|||
Interest expense |
|
(19.9 |
) |
|
(20.8 |
) |
|
(60.1 |
) |
|
(62.8 |
) |
|||
Preferred stock dividends |
|
(4.7 |
) |
|
(4.7 |
) |
|
(14.0 |
) |
|
(14.0 |
) |
|||
Net operating income |
|
84.8 |
|
|
104.8 |
|
|
417.2 |
|
|
393.1 |
|
|||
Adjustments: | |||||||||||||||
Net realized gains (losses) on investments |
|
13.0 |
|
|
11.7 |
|
|
(44.2 |
) |
|
50.6 |
|
|||
Global Preneed goodwill impairment |
|
(135.6 |
) |
|
- |
|
|
(135.6 |
) |
|
- |
|
|||
COVID-19 direct and incremental expenses(1) |
|
0.3 |
|
|
- |
|
|
(17.3 |
) |
|
- |
|
|||
CARES Act tax benefit |
|
- |
|
|
- |
|
|
84.4 |
|
|
- |
|
|||
Loss on sale of Mortgage Solutions |
|
- |
|
|
(7.5 |
) |
|
- |
|
|
(7.5 |
) |
|||
Foreign exchange related losses |
|
(2.4 |
) |
|
(8.8 |
) |
|
(7.9 |
) |
|
(16.6 |
) |
|||
Net charge related to Iké |
|
- |
|
|
(124.8 |
) |
|
(9.3 |
) |
|
(131.4 |
) |
|||
Loss on extinguishment of debt and other related costs |
|
- |
|
|
(29.6 |
) |
|
- |
|
|
(29.6 |
) |
|||
Other adjustments |
|
5.0 |
|
|
(5.3 |
) |
|
1.3 |
|
|
(17.6 |
) |
|||
GAAP net (loss) income attributable to common stockholders | $ |
(34.9 |
) |
$ |
(59.5 |
) |
$ |
288.6 |
|
$ |
241.0 |
|
|||
Note: A full reconciliation of net operating income to GAAP net income attributable to common stockholders can be found on Page 8. Additional details about the components of Other adjustments and other key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website http://ir.assurant.com/investor/default.aspx | |||||||
(1) ) Nine Months 2020 COVID-19 expenses were primarily comprised of second quarter 2020 employee-related expenses, including costs for additional floating holidays, a one-time COVID-19 relief payment and incentive bonuses for eligible on-site employees. |
Third Quarter 2020 Consolidated Results
Reportable Segments
Global Lifestyle | |||||||||||||||||||
($ in millions) |
|
3Q20 |
|
3Q19 |
% Change |
|
9M20 |
|
9M19 |
% Change |
|||||||||
Net operating income (5) | $ |
106.6 |
$ |
102.1 |
4 |
% |
$ |
349.3 |
$ |
312.0 |
12 |
% |
|||||||
Net earned premiums, fees and other income | $ |
1,805.0 |
$ |
1,749.3 |
3 |
% |
$ |
5,520.6 |
$ |
5,240.0 |
5 |
% |
Global Housing | ||||||||||||||||||
($ in millions) |
|
3Q20 |
|
3Q19 |
% Change |
|
9M20 |
|
9M19 |
% Change | ||||||||
Net operating income (5) | $ |
13.1 |
$ |
41.6 |
(69 |
)% |
$ |
172.7 |
$ |
185.8 |
(7 |
)% |
||||||
Net earned premiums, fees and other income | $ |
491.3 |
$ |
510.3 |
(4 |
)% |
$ |
1,480.6 |
$ |
1,520.4 |
(3 |
)% |
Global Preneed | ||||||||||||||||||
($ in millions) |
|
3Q20 |
|
3Q19 |
% Change |
|
9M20 |
|
9M19 |
% Change |
||||||||
Net operating income (5) | $ |
13.2 |
$ |
7.4 |
78 |
% |
$ |
39.2 |
$ |
36.1 |
9 |
% |
||||||
Net earned premiums, fees and other income | $ |
51.9 |
$ |
50.8 |
2 |
% |
$ |
155.6 |
$ |
149.5 |
4 |
% |
Corporate and Other | ||||||||||||||||||||||
($ in millions) |
|
3Q20 |
|
|
3Q19 |
|
% Change |
|
9M20 |
|
|
9M19 |
|
% Change | ||||||||
Net loss attributable to common stockholders | $ |
(167.8 |
) |
$ |
(210.6 |
) |
20 |
% |
$ |
(272.6 |
) |
$ |
(292.9 |
) |
7 |
% |
||||||
Net operating loss (6) | $ |
(23.5 |
) |
$ |
(20.8 |
) |
(13 |
)% |
$ |
(69.9 |
) |
$ |
(64.0 |
) |
(9 |
)% |
Holding Company Liquidity Position
2020 Company Outlook
The company’s outlook for 2020 is based on its current assumptions regarding market and business conditions, including the impacts of COVID-19, and does not reflect Assurant’s pending acquisition of HYLA Mobile and related financing, nor the company’s ongoing evaluation of strategic alternatives for Global Preneed.
For full-year 2020, the company now expects:
Earnings Conference Call
The third quarter 2020 earnings conference call and webcast will be held Tuesday, November 3, 2020 at 8:00 a.m. ET. The live and archived webcast, along with supplemental information, will be available on Assurant’s Investor Relations website: http://ir.assurant.com/investor/default.aspx
About Assurant
Assurant, Inc. (NYSE: AIZ) is a leading global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases. Anticipating the evolving needs of consumers, Assurant partners with the world’s leading brands to develop innovative products and services and to deliver an enhanced customer experience. A Fortune 500 company with a presence in 21 countries, Assurant offers mobile device solutions; extended service contracts; vehicle protection services; pre-funded funeral insurance; renters insurance; lender-placed insurance products; and other specialty products. The Assurant Foundation strengthens communities by supporting charitable partners that help protect where people live and can thrive, connect with local resources, inspire inclusion and prepare leaders of the future.
Learn more at assurant.com or on Twitter @AssurantNews.
Safe Harbor Statement
Some of the statements included in this news release and its exhibits, particularly those with respect to the proposed HYLA Mobile acquisition and process to explore strategic alternatives for Global Preneed, including the company’s financing plans and any statements regarding the company’s anticipating future financial performance, business prospects, growth and operating strategies and similar matters, may constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The company does not have a definitive timetable to complete its review of strategic alternatives for Global Preneed and there can be no assurance that any such process will result in a transaction.
You can identify forward-looking statements by the use of words such as “outlook,” “will,” “may,” “can,” “anticipates,” “expects,” “estimates,” “projects,” “intends,” “plans,” “believes,” “targets,” “forecasts,” “potential,” “approximately,” and the negative version of those words and other words and terms with a similar meaning. Any forward-looking statements contained in this news release or its exhibits are based upon our historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that our future plans, estimates or expectations will be achieved. Our actual results might differ materially from those projected in the forward-looking statements. We undertake no obligation to update or review any forward-looking statement, whether as a result of new information, future events or other developments. The following factors could cause our actual results to differ materially from those currently estimated by management, including those projected in the company outlook:
For additional information on factors that could affect our actual results, please refer to the factors identified in the reports we file with the U.S. Securities and Exchange Commission (the “SEC”), including but not limited to the risk factors identified in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, each as filed with the SEC.
Non-GAAP Financial Measures
Assurant uses the following non-GAAP financial measures to analyze the company’s operating performance for the periods presented in this news release. Because Assurant’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing Assurant’s non-GAAP financial measures to those of other companies.
(1) Assurant uses net operating income as an important measure of the company’s operating performance. Net operating income equals net income attributable to common stockholders, excluding the Global Preneed goodwill impairment, net realized gains (losses) on investments (which includes unrealized gains (losses) on equity securities and changes in fair value of direct investments in collateralized loan obligations), COVID-19 direct and incremental expenses, the net charge related to Iké, foreign exchange gains (losses) from remeasurement of monetary assets and liabilities, the CARES Act tax benefit, as well as other highly variable or unusual items other than reportable catastrophes. The company believes net operating income provides investors with a valuable measure of the performance of the company’s ongoing business because the excluded items do not represent the ongoing operations of the company. The comparable GAAP measure is net income attributable to common stockholders.
(UNAUDITED) | 3Q | 3Q | 9 Months | 9 Months | |||||||||||
($ in millions) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|||
Net operating income | $ |
84.8 |
|
$ |
104.8 |
|
$ |
417.2 |
|
$ |
393.1 |
|
|||
Adjustments (pre-tax): | |||||||||||||||
Net realized gains (losses) on investments |
|
16.5 |
|
|
14.9 |
|
|
(55.7 |
) |
|
61.5 |
|
|||
Global Preneed goodwill impairment |
|
(137.8 |
) |
|
- |
|
|
(137.8 |
) |
|
- |
|
|||
COVID-19 direct and incremental expenses |
|
0.4 |
|
|
- |
|
|
(21.9 |
) |
|
- |
|
|||
CARES Act tax benefit (after-tax) |
|
- |
|
|
- |
|
|
84.4 |
|
|
- |
|
|||
Loss on sale of Mortgage Solutions |
|
- |
|
|
(9.6 |
) |
|
- |
|
|
(9.6 |
) |
|||
Foreign exchange related losses |
|
(2.7 |
) |
|
(8.1 |
) |
|
(8.8 |
) |
|
(16.6 |
) |
|||
Net charge related to Iké |
|
- |
|
|
(121.1 |
) |
|
(5.9 |
) |
|
(130.5 |
) |
|||
Loss on extinguishment of debt and other related costs |
|
- |
|
|
(37.4 |
) |
|
- |
|
|
(37.4 |
) |
|||
Other adjustments(1) |
|
6.8 |
|
|
(6.6 |
) |
|
2.8 |
|
|
(21.6 |
) |
|||
(Provision) benefit for income taxes |
|
(2.9 |
) |
|
3.6 |
|
|
14.3 |
|
|
2.1 |
|
|||
GAAP net (loss) income attributable to common stockholders | $ |
(34.9 |
) |
$ |
(59.5 |
) |
$ |
288.6 |
|
$ |
241.0 |
|
(1) Additional details about the components of Other adjustments and other key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website http://ir.assurant.com/investor/default.aspx |
(2) Assurant uses net operating income (defined above), excluding reportable catastrophes (which represents catastrophe losses net of reinsurance and client profit sharing adjustments and including reinstatement and other premiums), as another important measure of the company’s operating performance. The company believes this metric provides investors with a valuable measure of the performance of the company’s ongoing business because it excludes reportable catastrophes, which can be volatile. The comparable GAAP measure is net income attributable to common stockholders.
(UNAUDITED) | 3Q | 3Q | 9 Months | 9 Months | |||||||||||
($ in millions) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|||
Global Lifestyle(1) | $ |
106.6 |
|
$ |
102.7 |
|
$ |
349.3 |
|
$ |
311.6 |
|
|||
Global Housing, excluding reportable catastrophes |
|
100.1 |
|
|
77.3 |
|
|
282.6 |
|
|
227.6 |
|
|||
Global Preneed |
|
13.2 |
|
|
7.4 |
|
|
39.2 |
|
|
36.1 |
|
|||
Corporate and other |
|
(23.5 |
) |
|
(20.8 |
) |
|
(69.9 |
) |
|
(64.0 |
) |
|||
Interest expense |
|
(19.9 |
) |
|
(20.8 |
) |
|
(60.1 |
) |
|
(62.8 |
) |
|||
Preferred stock dividends |
|
(4.7 |
) |
|
(4.7 |
) |
|
(14.0 |
) |
|
(14.0 |
) |
|||
Net operating income, excluding reportable catastrophes |
|
171.8 |
|
|
141.1 |
|
|
527.1 |
|
|
434.5 |
|
|||
Adjustments, pre-tax: | |||||||||||||||
Net realized gains (losses) on investments |
|
16.5 |
|
|
14.9 |
|
|
(55.7 |
) |
|
61.5 |
|
|||
Global Preneed goodwill impairment |
|
(137.8 |
) |
|
- |
|
|
(137.8 |
) |
|
- |
|
|||
Reportable catastrophes |
|
(110.1 |
) |
|
(46.0 |
) |
|
(139.0 |
) |
|
(52.3 |
) |
|||
COVID-19 direct and incremental expenses |
|
0.4 |
|
|
- |
|
|
(21.9 |
) |
|
- |
|
|||
CARES Act tax benefit (after-tax) |
|
- |
|
|
- |
|
|
84.4 |
|
|
- |
|
|||
Loss on sale of Mortgage Solutions |
|
- |
|
|
(9.6 |
) |
|
- |
|
|
(9.6 |
) |
|||
Foreign exchange related losses |
|
(2.7 |
) |
|
(8.1 |
) |
|
(8.8 |
) |
|
(16.6 |
) |
|||
Net charge related to Iké |
|
- |
|
|
(121.1 |
) |
|
(5.9 |
) |
|
(130.5 |
) |
|||
Loss on extinguishment of debt and other related costs |
|
- |
|
|
(37.4 |
) |
|
- |
|
|
(37.4 |
) |
|||
Other adjustments(2) |
|
6.8 |
|
|
(6.6 |
) |
|
2.8 |
|
|
(21.6 |
) |
|||
Benefit for income taxes |
|
20.2 |
|
|
13.3 |
|
|
43.4 |
|
|
13.0 |
|
|||
GAAP net (loss) income attributable to common stockholders | $ |
(34.9 |
) |
$ |
(59.5 |
) |
$ |
288.6 |
|
$ |
241.0 |
|
(1) 3Q 2019 excludes reportable catastrophes of $0.6 million after-tax ($0.8 million pre-tax), mainly related to Tropical Storm Imelda, and Nine Months 2019 excludes a benefit of $0.4 million after-tax ($0.7 million pre-tax), related to prior year reportable catastrophes. | |||||||
(2) Additional details about the components of Other adjustments and other key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website http://ir.assurant.com/investor/default.aspx |
(3) Assurant uses net operating income per diluted share as an important measure of the company’s stockholder value. Net operating income per diluted share equals net operating income (defined above) plus any dilutive preferred stock dividends divided by the weighted average number of diluted shares outstanding. The company believes this metric provides investors with a valuable measure of stockholder value because it excludes items that do not represent the ongoing operations of the company. The comparable GAAP measure is net income attributable to common stockholders per diluted share, defined as net income attributable to common stockholders plus any dilutive preferred stock dividends divided by the weighted average number of diluted shares outstanding.
(UNAUDITED) | 3Q | 3Q | 9 Months | 9 Months | |||||||||||
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Net operating income per diluted share(1) | $ |
1.41 |
|
$ |
1.69 |
|
$ |
6.88 |
|
$ |
6.29 |
|
|||
Adjustments, pre-tax: | |||||||||||||||
Net realized gains (losses) on investments |
|
0.27 |
|
|
0.25 |
|
|
(0.92 |
) |
|
0.99 |
|
|||
Global Preneed goodwill impairment |
|
(2.29 |
) |
|
- |
|
|
(2.26 |
) |
|
- |
|
|||
COVID-19 direct and incremental expenses |
|
0.01 |
|
|
- |
|
|
(0.36 |
) |
|
- |
|
|||
CARES Act tax benefit (after-tax) |
|
- |
|
|
- |
|
|
1.39 |
|
|
- |
|
|||
Loss on sale of Mortgage Solutions |
|
- |
|
|
(0.16 |
) |
|
- |
|
|
(0.15 |
) |
|||
Foreign exchange related losses |
|
(0.04 |
) |
|
(0.13 |
) |
|
(0.15 |
) |
|
(0.27 |
) |
|||
Net charge related to Iké |
|
- |
|
|
(1.95 |
) |
|
(0.10 |
) |
|
(2.08 |
) |
|||
Loss on extinguishment of debt and other related costs |
|
- |
|
|
(0.60 |
) |
|
- |
|
|
(0.59 |
) |
|||
Other adjustments(2) |
|
0.11 |
|
|
(0.12 |
) |
|
0.04 |
|
|
(0.36 |
) |
|||
(Provision) benefit for income taxes |
|
(0.05 |
) |
|
0.06 |
|
|
0.24 |
|
|
0.03 |
|
|||
Net (loss) income attributable to common stockholders per diluted share(1) | $ |
(0.58 |
) |
$ |
(0.96 |
) |
$ |
4.76 |
|
$ |
3.86 |
|
(1) Information on the share counts used in the per share calculations are included in the Financial Supplement located on Assurant’s Investor Relations website http://ir.assurant.com/investor/default.aspx | |||||||
(2) Additional details about the components of Other adjustments and other key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website http://ir.assurant.com/investor/default.aspx |
(4) Assurant uses net operating income per diluted share, excluding reportable catastrophes, as another important measure of the company's stockholder value. The company believes this metric provides investors with a valuable measure of stockholder value because it excludes reportable catastrophes, which can be volatile. The comparable GAAP measure is net income attributable to common stockholders per diluted share, defined as net income attributable to common stockholders plus any dilutive preferred stock dividends divided by the weighted average number of diluted shares outstanding.
(UNAUDITED) | 3Q | 3Q | 9 Months | 9 Months | |||||||||||
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Net operating income, excluding reportable catastrophes, per diluted share(1) | $ |
2.85 |
|
$ |
2.28 |
|
$ |
8.69 |
|
$ |
6.96 |
|
|||
Adjustments, pre-tax: | |||||||||||||||
Net realized gains (losses) on investments |
|
0.27 |
|
|
0.25 |
|
|
(0.92 |
) |
|
0.99 |
|
|||
Global Preneed goodwill impairment |
|
(2.29 |
) |
|
- |
|
|
(2.26 |
) |
|
- |
|
|||
Reportable catastrophes |
|
(1.83 |
) |
|
(0.74 |
) |
|
(2.29 |
) |
|
(0.84 |
) |
|||
COVID-19 direct and incremental expenses |
|
0.01 |
|
|
- |
|
|
(0.36 |
) |
|
- |
|
|||
CARES Act tax benefit (after-tax) |
|
- |
|
|
- |
|
|
1.39 |
|
|
- |
|
|||
Loss on sale of Mortgage Solutions |
|
- |
|
|
(0.16 |
) |
|
- |
|
|
(0.15 |
) |
|||
Foreign exchange related losses |
|
(0.04 |
) |
|
(0.13 |
) |
|
(0.15 |
) |
|
(0.27 |
) |
|||
Net charge related to Iké |
|
- |
|
|
(1.95 |
) |
|
(0.10 |
) |
|
(2.08 |
) |
|||
Loss on extinguishment of debt and other related costs |
|
- |
|
|
(0.60 |
) |
|
- |
|
|
(0.59 |
) |
|||
Other adjustments(2) |
|
0.11 |
|
|
(0.12 |
) |
|
0.04 |
|
|
(0.36 |
) |
|||
Benefit for income taxes |
|
0.34 |
|
|
0.21 |
|
|
0.72 |
|
|
0.20 |
|
|||
Net (loss) income attributable to common stockholders per diluted share(1) | $ |
(0.58 |
) |
$ |
(0.96 |
) |
$ |
4.76 |
|
$ |
3.86 |
|
(1) Information on the share counts used in the per share calculations are included in the Financial Supplement located on Assurant’s Investor Relations website http://ir.assurant.com/investor/default.aspx | |||||||
(2) Additional details about the components of Other adjustments and other key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website http://ir.assurant.com/investor/default.aspx |
(5) Segment net operating income of the Global Lifestyle, Global Housing and Global Preneed operating segments is equal to GAAP segment net income.
(6) Assurant uses Corporate and Other net operating loss as an important measure of the Corporate and Other segment’s performance. Corporate and Other net operating loss equals Corporate and Other segment net loss attributable to common stockholders, excluding the Global Preneed goodwill impairment, interest expense, net realized gains (losses) on investments (which includes unrealized gains (losses) on equity securities and changes in fair value of direct investments in collateralized loan obligations), COVID-19 direct and incremental expenses, the net charge related to Iké, foreign exchange gains (losses) from remeasurement of monetary assets and liabilities, the CARES Act tax benefit, as well as other highly variable or unusual items other than reportable catastrophes. The company believes Corporate and Other net operating loss provides investors a valuable measure of the performance of the company’s corporate segment because it excludes highly variable items that do not represent the ongoing results of the company’s corporate segment. The comparable GAAP measure is Corporate and Other segment net loss attributable to common stockholders.
(UNAUDITED) | 3Q | 3Q | 9 Months | 9 Months | |||||||||||
($ in millions) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|||
GAAP Corporate and Other segment net loss attributable to common stockholders | $ |
(167.8 |
) |
$ |
(210.6 |
) |
$ |
(272.6 |
) |
$ |
(292.9 |
) |
|||
Adjustments, pre-tax: | |||||||||||||||
Net realized (gains) losses on investments |
|
(16.5 |
) |
|
(14.9 |
) |
|
55.7 |
|
|
(61.5 |
) |
|||
Global Preneed goodwill impairment |
|
137.8 |
|
|
- |
|
|
137.8 |
|
|
- |
|
|||
COVID-19 direct and incremental expenses |
|
(0.4 |
) |
|
- |
|
|
21.9 |
|
|
- |
|
|||
CARES Act tax benefit (after-tax) |
|
- |
|
|
- |
|
|
(84.4 |
) |
|
- |
|
|||
Interest expense |
|
25.3 |
|
|
26.6 |
|
|
76.1 |
|
|
79.6 |
|
|||
Loss on sale of Mortgage Solutions |
|
- |
|
|
9.6 |
|
|
- |
|
|
9.6 |
|
|||
Foreign exchange related losses |
|
2.7 |
|
|
8.1 |
|
|
8.8 |
|
|
16.6 |
|
|||
Net charge related to Iké |
|
- |
|
|
121.1 |
|
|
5.9 |
|
|
130.5 |
|
|||
Loss on extinguishment of debt and other related costs |
|
- |
|
|
37.4 |
|
|
- |
|
|
37.4 |
|
|||
Other adjustments(1) |
|
(6.8 |
) |
|
6.6 |
|
|
(2.8 |
) |
|
21.6 |
|
|||
Benefit for income taxes |
|
(2.5 |
) |
|
(9.4 |
) |
|
(30.3 |
) |
|
(18.9 |
) |
|||
Preferred stock dividends |
|
4.7 |
|
|
4.7 |
|
|
14.0 |
|
|
14.0 |
|
|||
Corporate & other net operating loss | $ |
(23.5 |
) |
$ |
(20.8 |
) |
$ |
(69.9 |
) |
$ |
(64.0 |
) |
(1) Additional details about the components of Other adjustments and other key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website http://ir.assurant.com/investor/default.aspx |
(7) The company outlook for net operating income per diluted share, excluding reportable catastrophes, and Corporate and Other full-year net operating loss each constitute forward-looking information and the company believes that it cannot reconcile such forward-looking information to the most comparable GAAP measure without unreasonable efforts. Many of the GAAP components cannot be reliably quantified due to the combination of variability and volatility of such components and may, depending on the size of the components, have a significant impact on the reconciliation. The company is able to quantify a range of interest expense and preferred stock dividends, as disclosed in the outlook. The interest expense estimate assumes no additional debt is incurred or extinguished in the forecast period and excludes after-tax interest expenses included in debt extinguishment and other related costs. Preferred stock dividends are subject to Board approval.
A summary of net operating income disclosed items is included on page 15 of the company’s Financial Supplement, which is available on Assurant’s Investor Relations website: http://ir.assurant.com/investor/default.aspx
Assurant, Inc.
Consolidated Statement of Operations (unaudited)
|
|||||||||||||||
3Q | 9 Months | ||||||||||||||
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
($ in millions except number of shares and per share amounts) | |||||||||||||||
Revenues | |||||||||||||||
Net earned premiums | $ |
2,102.8 |
|
$ |
2,015.4 |
|
$ |
6,223.0 |
|
$ |
5,952.5 |
|
|||
Fees and other income |
|
245.9 |
|
|
295.1 |
|
|
934.3 |
|
|
959.5 |
|
|||
Net investment income |
|
135.1 |
|
|
169.5 |
|
|
428.3 |
|
|
490.0 |
|
|||
Net realized gains (losses) on investments |
|
16.6 |
|
|
14.9 |
|
|
(54.6 |
) |
|
61.5 |
|
|||
Amortization of deferred gains on disposal of businesses |
|
2.1 |
|
|
4.4 |
|
|
8.7 |
|
|
16.9 |
|
|||
Total revenues |
|
2,502.5 |
|
|
2,499.3 |
|
|
7,539.7 |
|
|
7,480.4 |
|
|||
Benefits, losses and expenses | |||||||||||||||
Policyholder benefits |
|
709.6 |
|
|
705.2 |
|
|
1,908.9 |
|
|
2,006.9 |
|
|||
Selling, underwriting, general and administrative expenses |
|
1,633.7 |
|
|
1,634.0 |
|
|
5,077.5 |
|
|
4,850.7 |
|
|||
Goodwill impairment |
|
137.8 |
|
|
- |
|
|
137.8 |
|
|
- |
|
|||
Net Iké losses |
|
- |
|
|
121.1 |
|
|
5.9 |
|
|
130.5 |
|
|||
Interest expense |
|
25.5 |
|
|
32.2 |
|
|
77.7 |
|
|
85.2 |
|
|||
Loss on extinguishment of debt |
|
- |
|
|
31.4 |
|
|
- |
|
|
31.4 |
|
|||
Total benefits, losses and expenses |
|
2,506.6 |
|
|
2,523.9 |
|
|
7,207.8 |
|
|
7,104.7 |
|
|||
(Loss) income before provision for income taxes |
|
(4.1 |
) |
|
(24.6 |
) |
|
331.9 |
|
|
375.7 |
|
|||
Provision for income taxes |
|
26.4 |
|
|
28.6 |
|
|
28.2 |
|
|
117.7 |
|
|||
Net (loss) income |
|
(30.5 |
) |
|
(53.2 |
) |
|
303.7 |
|
|
258.0 |
|
|||
Less: Net loss (income) attributable to non-controlling interests |
|
0.3 |
|
|
(1.6 |
) |
|
(1.1 |
) |
|
(3.0 |
) |
|||
Net (loss) income attributable to stockholders |
|
(30.2 |
) |
|
(54.8 |
) |
|
302.6 |
|
|
255.0 |
|
|||
Less: Preferred stock dividends |
|
(4.7 |
) |
|
(4.7 |
) |
|
(14.0 |
) |
|
(14.0 |
) |
|||
Net (loss) income attributable to common stockholders | $ |
(34.9 |
) |
$ |
(59.5 |
) |
$ |
288.6 |
|
$ |
241.0 |
|
|||
Net (loss) income attributable to common stockholders per share: | |||||||||||||||
Basic | $ |
(0.58 |
) |
$ |
(0.96 |
) |
$ |
4.78 |
|
$ |
3.88 |
|
|||
Diluted | $ |
(0.58 |
) |
$ |
(0.96 |
) |
$ |
4.76 |
|
$ |
3.86 |
|
|||
Common stock dividends per share | $ |
0.63 |
|
$ |
0.60 |
|
$ |
1.89 |
|
$ |
1.80 |
|
|||
Share data: | |||||||||||||||
Basic weighted average shares outstanding |
|
60,190,103 |
|
|
61,804,492 |
|
|
60,384,817 |
|
|
62,204,242 |
|
|||
Diluted weighted average shares outstanding |
|
60,190,103 |
|
|
61,804,492 |
|
|
60,640,945 |
|
|
62,460,245 |
|
Assurant, Inc. Consolidated Condensed Balance Sheets (unaudited) At September 30, 2020 and December 31, 2019 |
|||||
September 30, | December 31, | ||||
|
2020 |
|
2019 |
||
($ in millions) | |||||
Assets | |||||
Investments and cash and cash equivalents | $ |
17,408.9 |
$ |
16,434.4 |
|
Reinsurance recoverables |
|
9,796.2 |
|
9,593.4 |
|
Deferred acquisition costs |
|
7,405.5 |
|
6,668.0 |
|
Goodwill |
|
2,325.8 |
|
2,343.4 |
|
Value of business acquired |
|
1,339.8 |
|
2,004.3 |
|
Assets held in separate accounts |
|
2,006.1 |
|
1,839.7 |
|
Other assets |
|
3,300.3 |
|
3,387.9 |
|
Assets of consolidated investment entities |
|
- |
|
2,020.1 |
|
Total assets | $ |
43,582.6 |
$ |
44,291.2 |
|
Liabilities | |||||
Policyholder benefits and claims payable | $ |
12,665.6 |
$ |
12,495.0 |
|
Unearned premiums |
|
17,116.6 |
|
16,603.6 |
|
Debt |
|
2,008.6 |
|
2,006.9 |
|
Liabilities related to separate accounts |
|
2,006.1 |
|
1,839.7 |
|
Accounts payable and other liabilities |
|
3,845.7 |
|
3,976.9 |
|
Liabilities of consolidated investment entities |
|
- |
|
1,687.0 |
|
Total liabilities |
|
37,642.6 |
|
38,609.1 |
|
Stockholders' equity | |||||
Equity, excluding accumulated other comprehensive income |
|
5,278.2 |
|
5,241.3 |
|
Accumulated other comprehensive income |
|
658.2 |
|
411.5 |
|
Total Assurant, Inc. stockholders' equity |
|
5,936.4 |
|
5,652.8 |
|
Non-controlling interest |
|
3.6 |
|
29.3 |
|
Total equity |
|
5,940.0 |
|
5,682.1 |
|
Total liabilities and equity | $ |
43,582.6 |
$ |
44,291.2 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20201102005932/en/
Media Contact:
Linda Recupero
Senior Vice President, Enterprise Communication
Phone: 201.519.9773
[email protected]
Investor Relations Contacts:
Suzanne Shepherd
Senior Vice President, Investor Relations
Phone: 201.788.4324
[email protected]
Sean Moshier
Assistant Vice President, Investor Relations
Phone: 914.204.2253
[email protected]