Assurant Inc. (AIZ) first-quarter profit fell 9.8% as revenue
declined, while operating earnings topped Wall Street's views.
Assurant's bottom line has been hurt lately by lower revenue and
net earned premiums and the fourth quarter saw the company swing to
the red because of a charge related to the health-care reform.
Last month, Moody's Investors Service lowered its outlook on the
company and its primary life- and health-insurance units,
increasing the likelihood of a downgrade. The ratings agency said
the health-care reform was hurting Assurant's health business
faster than it had expected.
The insurer of products from credit cards to trailer parks
reported its profit fell to $141.7 million from $157.2 million a
year earlier, but on a share-basis increased to $1.39 from $1.34 as
the number of shares outstanding fell 13%. Operating earnings,
which exclude realized investment gains and losses, rose to $1.37
from $1.32.
Total revenue fell 6.1% to $2.04 billion.
Analysts polled by Thomson Reuters had predicted operating
earnings of $1.22 on $2.08 billion in revenue.
Net earned premiums and other considerations slid 7.6%, while
investment income declined 1.2%. Policyholder benefits fell
3.6%.
Shares closed at $38.47, up a penny. The stock is up 14% over
the past year.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com