DOW JONES NEWSWIRES
Assurant Inc. (AIZ) swung to a third-quarter profit as its
business improved from a year earlier, when it posted large
investment and catastrophe losses.
The insurer's results topped Wall Street's expectations.
Chief Executive Robert Pollock said the quarter "was good on
several fronts as we grew our capital position, increased book
value per share and generated a consolidated annualized operating
[return on equity] of 10.7%."
Assurant is one of the few companies that benefited from rising
mortgage defaults because its specialty-property unit collects
premiums from banks on homes whose owners have fallen behind on
coverage. Its health unit has suffered from higher utilization for
several quarters as people fear losing their jobs and coverage.
The company, which insures a range of items from credit cards to
trailer parks, reported a profit of $144.7 million, or $1.22 a
share, compared with a year-earlier loss of $111.4 million, or 94
cents a share. Operating earnings, which exclude realized
investment gains and losses, rose to $1.07 from 70 cents.
Revenue rose 10% to $2.16 billion.
Analysts estimated operating earnings of 94 cents on revenue of
$2.13 billion, according to a poll by Thomson Reuters.
Net earned premiums slid 5.5%, while investment income declined
10%.
Profit tripled in specialty property, its largest segment, while
the health unit swung to a loss.
Assurant's shares closed Wednesday down 2.5% at $29.34 and were
inactive after hours.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com