Assurant Q3 profit surges on growth in global housing unit, investment returns

Loews

31/10/2023 21:27

Oct 31 (Reuters) - Insurer Assurant  AIZ.N  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)
 ((Manya.Saini@thomsonreuters.com))