[October 25, 2016] |
|
Assurant Reports Third Quarter 2016 Financial Results
Assurant,
Inc. (NYSE:AIZ), a global provider of risk management solutions,
today reported results for third quarter ended Sept. 30, 2016.
"Despite disappointing third quarter results that fell short of
expectations, we remain confident in Assurant's long-term strategy and
growth potential, as we execute our multi-year transformation," said
Alan Colberg, president and CEO, Assurant. "We are managing headwinds
from the normalization of lender-placed insurance and declines in legacy
businesses, and are committed to improving overall profitability by
leveraging our global capabilities, driving operating efficiencies and
continuing to deploy capital to maximize shareholder returns."
|
Reconciliation of Net Operating Income to GAAP Net Income (Loss)
|
(UNAUDITED)
|
|
3Q
|
|
3Q
|
|
9 Months
|
|
9 Months
|
(dollars in millions, net of tax)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Assurant Solutions
|
|
$
|
42.7
|
|
|
$
|
52.4
|
|
|
$
|
151.2
|
|
|
$
|
167.6
|
|
Assurant Specialty Property
|
|
|
44.6
|
|
|
|
87.3
|
|
|
|
177.8
|
|
|
|
249.9
|
|
Corporate and other
|
|
|
(17.4
|
)
|
|
|
(26.4
|
)
|
|
|
(50.7
|
)
|
|
|
(39.7
|
)
|
Interest expense
|
|
|
(9.2
|
)
|
|
|
(9.0
|
)
|
|
|
(28.4
|
)
|
|
|
(26.9
|
)
|
Net operating income
|
|
|
60.7
|
|
|
|
104.3
|
|
|
|
249.9
|
|
|
|
350.9
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Assurant Health runoff operations
|
|
|
(1.7
|
)
|
|
|
(144.4
|
)
|
|
|
(34.3
|
)
|
|
|
(352.1
|
)
|
Assurant Employee Benefits
|
|
|
-
|
|
|
|
10.4
|
|
|
|
10.5
|
|
|
|
31.9
|
|
Net realized gains on investments
|
|
|
7.0
|
|
|
|
4.1
|
|
|
|
126.1
|
|
|
|
14.4
|
|
Amortization of deferred gains and gains on disposal of businesses
|
|
|
88.3
|
|
|
|
2.1
|
|
|
|
201.0
|
|
|
|
6.3
|
|
Other adjustments
|
|
|
(9.9
|
)
|
|
|
16.5
|
|
|
|
(19.2
|
)
|
|
|
24.4
|
|
GAAP Net income (loss)
|
|
$
|
144.4
|
|
|
$
|
(7.0
|
)
|
|
$
|
534.0
|
|
|
$
|
75.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Note: Beginning in first quarter 2016, Assurant revised its financial
supplement and corresponding news release to reflect the company's
ongoing multi-year, transformation to focus on specialty housing and
lifestyle protection products and services and align revenue categories
with its key business lines as well as risk-based and fee-based,
capital-light models. Assurant Health runoff operations, Assurant
Employee Benefits, which was sold on March 1, 2016, and amortization of
deferred gains and gains on disposal of businesses and other variable
items have been removed from net operating income. Prior period amounts
have been revised to conform to the updated presentation.
Additional financial information, including a schedule of disclosed
items that affected Assurant's results by business for the last four
quarters appears on page 21 of the company's Financial Supplement, and
is located in the Investor Relations section of www.assurant.com.
Third Quarter 2016 Consolidated Results
-
Net income increased to $144.4 million, or $2.37 per diluted
share, compared to third quarter 2015 net loss of $7.0 million, or
$(0.10) per diluted share. This increase was primarily due to lower
losses and exit-related charges from Assurant Health runoff
operations, and the amortization of deferred gains and gains resulting
from the sale of Assurant Employee Benefits. Reportable catastrophe
losses from the Louisiana floods, as well as the ongoing normalization
of lender-placed insurance, partially offset the increase in net
income.
-
Net operating income2 decreased to $60.7 million, or
$1.00 per diluted share, compared to third quarter 2015 net operating
income of $104.3 million, or $1.53 per diluted share. Results
primarily reflect higher reportable catastrophe losses, the ongoing
normalization of lender-placed insurance and declines in mobile and
legacy extended service contracts and credit insurance. The decline
was partially offset by lower Corporate net operating loss.
Excluding
catastrophe losses, net operating income for third quarter 2016
decreased to $93.8 million, or $1.54 per diluted share, compared to
$104.3 million, or $1.53 per diluted share in the prior year period.
The decrease in net operating income reflects the factors noted above.
-
Net earned premiums, fees and other income from Assurant
Solutions and Assurant Specialty Property increased slightly to $1.55
billion, compared to $1.54 billion in third quarter 2015, as growth in
mobile subscribers and vehicle protection offerings offset expected
declines in lender-placed insurance.
Housing and Lifestyle Businesses
Assurant Solutions
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
3Q16
|
|
|
3Q15
|
|
|
% Change
|
|
|
|
9M16
|
|
|
|
9M15
|
|
|
% Change
|
Net operating income
|
|
|
$
|
42.7
|
|
|
$
|
52.4
|
|
|
(19)%
|
|
|
$
|
151.2
|
|
|
$
|
167.6
|
|
|
(10)%
|
Net earned premiums, fees and other
|
|
|
$
|
971.0
|
|
|
$
|
939.6
|
|
|
3%
|
|
|
$
|
2,906.2
|
|
|
$
|
2,798.3
|
|
|
4%
|
-
Net operating income decreased in third quarter 2016, primarily
due to lower contributions from mobile, legacy extended service
contracts and credit insurance. Mobile results reflected lower than
expected volumes from mobile repair and logistics and higher expenses
related to certain technology systems. Third quarter 2015 results
included a $4.5 million net tax benefit from international operations
while third quarter 2016 results reflected $3.3 million of investment
income from real estate joint venture partnerships.
-
Net earned premiums, fees and other income increased compared
to third quarter 2015, due to growth in mobile subscribers and vehicle
protection contracts. Foreign exchange volatility, as well as declines
from legacy retail clients and credit insurance, partially offset the
improvement.
Assurant Specialty Property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
3Q16
|
|
|
3Q15
|
|
|
% Change
|
|
|
9M16
|
|
|
9M15
|
|
|
% Change
|
Net operating income
|
|
|
$
|
44.6
|
|
|
$
|
87.3
|
|
|
(49)%
|
|
|
$
|
177.8
|
|
|
$
|
249.9
|
|
|
(29)%
|
Net earned premiums, fees and other
|
|
|
$
|
579.1
|
|
|
$
|
597.7
|
|
|
(3)%
|
|
|
$
|
1,717.6
|
|
|
$
|
1,848.6
|
|
|
(7)%
|
-
Net operating income decreased in the quarter due to higher
weather-related claims and the ongoing normalization of lender-placed
insurance business. Results included $33.1 million of reportable
catastrophe losses, compared to none in third quarter 2015.
-
Net earned premiums, fees and other income decreased in third
quarter 2016 due to lender-placed insurance normalization. Growth in
multi-family housing and mortgage solutions, including fee income from
the recently acquired title and valuation business, partially offset
the decline.
-
Combined ratio for risk-based businesses(a) increased
to 92.0 percent from 79.4 percent in third quarter 2015, driven by
higher reportable catastrophe losses. Excluding these losses, the
combined ratio was flat year-over-year as lower general expenses
offset declining lender-placed insurance net earned premiums.
-
Pre-tax margin for fee-based, capital-light businesses(b)
was 9.7 percent, compared to 15.2 percent in third quarter
2015. The decrease was primarily due to higher expenses to support
growth in the field services and valuation businesses.
(a) Combined ratio for the risk-based businesses is equal to total
benefits, losses and expenses, including reportable catastrophe losses,
divided by net earned premiums and fees and other income, for
lender-placed and manufactured housing and other businesses.
(b) Pre-tax margin for the fee-based, capital-light businesses is equal
to income before provision for income taxes divided by total net earned
premiums, fees and other income, for multi-family housing and mortgage
solutions businesses.
Corporate & Other
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(in millions)
|
|
|
|
|
|
|
|
|
|
|
3Q16
|
|
|
3Q15
|
|
|
% Change
|
|
|
9M16
|
|
|
9M15
|
|
|
% Change
|
Net operating loss (3)
|
|
|
|
|
|
|
|
|
|
|
$
|
(17.4)
|
|
|
$
|
(26.4)
|
|
|
34%
|
|
|
(50.7)
|
|
|
$
|
(39.7)
|
|
|
(28)%
|
-
Net operating loss3 decreased in third
quarter 2016, primarily due to lower tax expense and employee benefit
costs.
Assurant Health Runoff Operations The company expects the
exit of the health insurance market to be substantially completed by the
end of 2016.
-
Net loss of $1.7 million due to a slight reduction in estimated
recoverables related to 2015 Affordable Care Act (ACA) risk mitigation
programs, offset by favorable claims development.
-
ACA risk-mitigation payments received from the Centers for
Medicare and Medicaid Services (CMS) for 2015 ACA-qualified policies
totaled $378 million for nine months ended Sept. 30, 2016. Estimated
net recoverables for 2015 ACA-qualified policies as of Sept. 30, 2016
were $99 million. This includes $67 million from the risk-adjustment
program and $32 million from the reinsurance program. The company did
not record any net recoverables for the 2015 risk-corridors program.
Capital Position
-
Corporate capital approximated $875 million as of Sept. 30,
2016. Deployable capital totaled approximately $625 million, adjusting
for the company's $250 million risk buffer.
Segment
dividends paid to the holding company in third quarter totaled $418
million. This is comprised of $189 million from Assurant Health, $150
million in capital releases from the sale of Assurant Employee
Benefits, and $79 million from Assurant Solutions and Assurant
Specialty Property.
During the quarter, the company
completed its previously announced acquisition of a title and
valuation business and invested another $11 million for capabilities
in areas targeted for growth.
-
Share repurchases and dividends totaled $266 million in third
quarter 2016. Dividends to shareholders totaled $30 million, and
Assurant repurchased approximately 2.7 million shares of common stock
for $236 million. From Oct. 1 through Oct. 21, 2016, the company
repurchased an additional 742,000 shares for approximately $66
million, with $199 million remaining under the current repurchase
authorization.
Company Outlook
Based on current market conditions, for full-year 2016, the company
expects:
-
Assurant Solutions' net operating income to decline modestly
from 2015. Growth from new and existing mobile programs in 2016 is not
expected to offset declines in legacy extended service contracts,
credit insurance and the loss of the tablet program. Net earned
premiums and fees to increase, driven by growth in mobile subscribers
and vehicle service contracts, partially offset by lower service
contract revenue from legacy North American retail clients and
continued declines in credit insurance.
-
Assurant Specialty Property's net earned premiums and net
operating income to decrease from 2015 levels. Results to be affected
by the ongoing normalization of lender-placed insurance business,
partially offset by increased efficiencies and related expense saving
initiatives. Multi-family housing and mortgage solutions businesses to
expand via market share gains. Overall results to reflect catastrophe
losses including claims from Hurricane Matthew, a fourth quarter 2016
catastrophe event.
-
Corporate & Other4 full-year net operating loss
to approximate $70 million.
-
Capital to be deployed through a combination of share
repurchases, common stock dividends, reinvestments in the business and
acquisitions in Housing and Lifestyle, subject to market conditions
and other factors. Business segment dividends from Assurant Solutions
and Assurant Specialty Property to approximate segment net operating
income, subject to reportable catastrophe losses, the growth of the
businesses, rating agency and regulatory capital requirements. Company
to receive nearly $1 billion of net proceeds, including capital
releases, related to the sale of Assurant Employee Benefits mainly in
2016, with a total of $768 million received year-to-date.
For runoff operations, the company expects:
-
Assurant Health substantially to complete the process to exit
the health insurance market in 2016. During the remainder of the wind
down, the company expects to incur $13 million to $20 million pre-tax
of additional exit-related charges, as well as certain overhead
expenses that are excluded from the premium deficiency reserve
accrual. Assurant Health dividends to approximate $475 million for
full-year 2016, of which $338 million was received in the first nine
months, subject to ultimate development of claims, actual expenses
needed to wind down operations, ACA-risk mitigation payments and
regulatory approval.
Earnings Conference Call
The third quarter 2016 earnings conference call and webcast will be held
on Wednesday, Oct. 26, 2016 at 8:00 a.m. ET. The live and archived
webcast along with supplemental information will be available in the
Investor Relations section of www.assurant.com.
About Assurant
Assurant, Inc. (NYSE: AIZ) is a global provider of risk management
solutions, protecting where consumers live and the goods they buy. A
Fortune 500 company, Assurant focuses on the housing and lifestyle
markets, and is among the market leaders in mobile device protection;
extended service contracts; vehicle protection; pre-funded funeral
insurance; renters insurance; lender-placed homeowners insurance; and
mortgage valuation and field services. With approximately $30 billion in
assets and $6 billion in annualized revenue as of September 30, 2016,
Assurant is located in 16 countries, while its Assurant Foundation works
to support and improve communities. 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 anticipating future financial performance, business
prospects, growth and operating strategies and similar matters, are
forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. You can identify these
statements by the use of words such as "outlook," "will," "may,"
"anticipates," "expects," "estimates," "projects," "intends," "plans,"
"believes," "targets," "forecasts," "potential," "approximately," or 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 the future plans, estimates or expectations
contemplated by us will be achieved. Our actual results might differ
materially from those projected in the forward-looking statements. The
company undertakes no obligation to update or review any forward-looking
statements in this news release or the exhibits, whether as a result of
new information, future events or other developments. The following risk
factors could cause our actual results to differ materially from those
currently estimated by management, including those projected in the
company outlook:
(i)
|
|
actions by governmental agencies or government sponsored entities or
other circumstances, including pending regulatory matters affecting
our lender-placed insurance business, that could result in
reductions of premium rates or increases in expenses, including
claims, fines, penalties or other expenses;
|
(ii)
|
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loss of significant client relationships or business, distribution
sources or contracts and reliance on a few clients;
|
(iii)
|
|
potential variations between the final risk adjustment amount and
reinsurance amounts, as determined by the U.S. Department of Health
and Human Services under the Affordable Care Act, and the company's
estimate;
|
(iv)
|
|
unfavorable outcomes in litigation and/or regulatory investigations
that could negatively affect our results, business and reputation;
|
(v)
|
|
inability to execute strategic plans related to acquisitions,
dispositions or new ventures;
|
(vi)
|
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failure to adequately predict or manage benefits, claims and other
costs;
|
(vii)
|
|
inadequacy of reserves established for future claims;
|
(viii)
|
|
current or new laws and regulations that could increase our costs
and decrease our revenues;
|
(ix)
|
|
significant competitive pressures in our businesses;
|
(x)
|
|
failure to attract and retain sales representatives, key managers,
agents or brokers;
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(xi)
|
|
losses due to natural or man-made catastrophes;
|
(xii)
|
|
a decline in our credit or financial strength ratings (including the
risk of ratings downgrades in the insurance industry);
|
(xiii)
|
|
deterioration in our market capitalization compared to its book
value that could result in an impairment of goodwill;
|
(xiv)
|
|
risks related to our international operations, including
fluctuations in exchange rates;
|
(xv)
|
|
data breaches compromising client information and privacy;
|
(xvi)
|
|
general global economic, financial market and political conditions
(including difficult conditions in financial, capital, credit and
currency markets, the global economic slowdown, fluctuations in
interest rates or a prolonged period of low interest rates, monetary
policies, unemployment and inflationary pressure);
|
(xvii)
|
|
cyber security threats and cyber attacks;
|
(xviii)
|
|
failure to effectively maintain and modernize our information
systems;
|
(xix)
|
|
uncertain tax positions and unexpected tax liabilities;
|
(xx)
|
|
risks related to outsourcing activities;
|
(xxi)
|
|
unavailability, inadequacy and unaffordable pricing of reinsurance
coverage;
|
(xxii)
|
|
diminished value of invested assets in our investment portfolio (due
to, among other things, volatility in financial markets; the global
economic slowdown; credit, currency and liquidity risk; other than
temporary impairments and increases in interest rates);
|
(xxiii)
|
|
insolvency of third parties to whom we have sold or may sell
businesses through reinsurance or modified co-insurance;
|
(xxiv)
|
|
inability of reinsurers to meet their obligations;
|
(xxv)
|
|
credit risk of some of our agents in Assurant Specialty Property and
Assurant Solutions;
|
(xxvi)
|
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inability of our subsidiaries to pay sufficient dividends;
|
(xxvii)
|
|
failure to provide for succession of senior management and key
executives; and
|
(xxviii)
|
|
cyclicality of the insurance industry.
|
|
|
|
For a detailed discussion of the risk factors that could affect our
actual results, please refer to the risk factors identified in our SEC
reports, including, but not limited to our 2015 Annual Report on Form
10-K and our First Quarter Report on Form 10-Q, 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 operating return on equity ("Operating ROE"),
excluding accumulated other comprehensive income ("AOCI"), as an
important measure of the company's operating performance. Operating
ROE, excluding AOCI, equals net operating income (defined below) for
the periods presented divided by average stockholders' equity,
excluding AOCI, for the year to date period. The company believes
operating ROE provides investors a valuable measure of the
performance of the company's ongoing business, because it excludes
the effect of Assurant Health runoff operations and the divested
Assurant Employee Benefits business, which was sold on March 1,
2016. The calculation also excludes net realized gains (losses) on
investments, amortization of deferred gains and gains on disposal of
businesses and those events that are highly variable and do not
represent the ongoing operations of the company. The comparable GAAP
measure would be GAAP return on equity ("GAAP ROE"), defined as net
income, for the periods presented, divided by average stockholders'
equity for the year to date period.
|
|
|
|
|
|
|
|
|
|
9 Months
|
|
|
|
12 Months
|
|
|
2016
|
|
|
|
2015
|
Annual operating return on average equity, excluding AOCI
|
|
9.2%
|
|
|
|
11.5%
|
Assurant Health runoff operations
|
|
(1.3)%
|
|
|
|
(10.6)%
|
Assurant Employee Benefits
|
|
0.4%
|
|
|
|
1.4%
|
Net realized gains on investments
|
|
4.6%
|
|
|
|
0.6%
|
Amortization of deferred gains and gains on disposal of businesses
|
|
7.4%
|
|
|
|
0.2%
|
Other adjustments:
|
|
|
|
|
|
|
Gain on divested business
|
|
-
|
|
|
|
0.3%
|
Change in tax liabilities
|
|
-
|
|
|
|
0.5%
|
Payment received related to previous sale of subsidiary
|
|
-
|
|
|
|
0.3%
|
Gain related to benefit plan activity
|
|
0.6%
|
|
|
|
-
|
Amount related to the sale of AEB
|
|
(0.6)%
|
|
|
|
-
|
Post-close cont. liab. on previous disposition
|
|
(0.4)%
|
|
|
|
-
|
Intangible asset impairment
|
|
(0.4)%
|
|
|
|
-
|
Change in derivative investment
|
|
0.1%
|
|
|
|
(0.1)%
|
Change due to effect of including AOCI
|
|
(3.8)%
|
|
|
|
(1.2)%
|
Annual GAAP return on average equity
|
|
15.8%
|
|
|
|
2.9%
|
|
|
|
|
|
|
|
(2)
|
|
Assurant uses net operating income as an important measure of the
company's operating performance. Net operating income equals net
income, excluding Assurant Health runoff operations, Assurant
Employee Benefits, net realized gains (losses) on investments,
amortization of deferred gains and gains on disposal of businesses
and other highly variable items. The company believes net operating
income provides investors a valuable measure of the performance of
the company's ongoing business because it excludes the effect of
Assurant Health runoff operations and the divested Assurant Employee
Benefits business, which was sold on March 1, 2016. The calculation
also excludes net realized gains (losses) on investments,
amortization of deferred gains and gains on disposal of businesses
and those events that are highly variable and do not represent the
ongoing operations of the company.
|
|
|
|
|
|
|
|
|
|
|
|
|
(UNAUDITED)
|
|
3Q
|
|
|
3Q
|
|
|
9 Months
|
|
|
9 Months
|
(dollars in millions)
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Net operating income
|
|
$
|
60.7
|
|
|
|
$
|
104.3
|
|
|
|
$
|
249.9
|
|
|
|
$
|
350.9
|
|
Adjustments (pre-tax):
|
|
|
|
|
|
|
|
|
|
|
|
Assurant Health runoff operations
|
|
|
-
|
|
|
|
|
(220.2
|
)
|
|
|
|
(42.1
|
)
|
|
|
|
(504.0
|
)
|
Assurant Employee Benefits
|
|
|
-
|
|
|
|
|
16.8
|
|
|
|
|
16.7
|
|
|
|
|
49.7
|
|
Net realized gains on investments
|
|
|
10.7
|
|
|
|
|
6.2
|
|
|
|
|
194.0
|
|
|
|
|
22.2
|
|
Amortization of deferred gains and gains on disposal of businesses
|
|
|
135.8
|
|
|
|
|
3.2
|
|
|
|
|
309.2
|
|
|
|
|
9.7
|
|
Other adjustments
|
|
|
(15.4
|
)
|
|
|
|
16.8
|
|
|
|
|
(29.7
|
)
|
|
|
|
29.2
|
|
(Provision) benefit for income taxes
|
|
|
(47.4
|
)
|
|
|
|
65.9
|
|
|
|
|
(164.0
|
)
|
|
|
|
118.1
|
|
GAAP Net income (loss)
|
|
$
|
144.4
|
|
|
|
$
|
(7.0
|
)
|
|
|
$
|
534.0
|
|
|
|
$
|
75.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
Assurant uses Corporate & Other net operating loss as an important
measure of the corporate segment's operating performance. Corporate
& Other net operating loss equals segment net income (loss),
excluding amortization of deferred gains and gains on disposal of
businesses, net realized gains (losses) on investments, interest
expense and other highly variable items. The company believes
Corporate & Other net operating loss provides investors a valuable
measure of the performance of the company's corporate segment
because it excludes the effect of amortization of deferred gains and
gains on disposal of businesses, net realized gains (losses) on
investments, interest expense and those events that are highly
variable and do not represent the ongoing operations of the
company's Corporate & Other segment. The comparable GAAP measure
would be Corporate & Other segment net income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q
|
|
|
3Q
|
|
|
9 Months
|
|
|
9 Months
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Corporate & Other segment net income (loss)
|
|
$
|
58.8
|
|
|
|
$
|
(12.8
|
)
|
|
|
$
|
228.8
|
|
|
|
$
|
(21.4
|
)
|
Adjustments, pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred gains and gains on disposal of businesses
|
|
|
(135.8
|
)
|
|
|
|
(3.2
|
)
|
|
|
|
(309.2
|
)
|
|
|
|
(9.7
|
)
|
Interest expense
|
|
|
14.0
|
|
|
|
|
13.8
|
|
|
|
|
43.7
|
|
|
|
|
41.3
|
|
Net realized gains on investments
|
|
|
(10.7
|
)
|
|
|
|
(6.2
|
)
|
|
|
|
(194.0
|
)
|
|
|
|
(22.2
|
)
|
Other adjustments
|
|
|
15.4
|
|
|
|
|
(16.8
|
)
|
|
|
|
29.7
|
|
|
|
|
(29.2
|
)
|
Provision (benefit) for income taxes
|
|
|
40.9
|
|
|
|
|
(1.2
|
)
|
|
|
|
150.3
|
|
|
|
|
1.5
|
|
Corporate & other net operating loss
|
|
$
|
(17.4
|
)
|
|
|
$
|
(26.4
|
)
|
|
|
$
|
(50.7
|
)
|
|
|
$
|
(39.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
|
The company outlook for Corporate & Other full-year net operating
loss constitutes forward-looking information and the company
believes that a quantitative reconciliation of such forward-looking
information to the most comparable GAAP measure cannot be made
available without unreasonable efforts. A reconciliation would
require the company to quantify amortization of deferred gains and
gains on disposal of businesses, interest expense, net realized
gains on investments, and change in derivative investment. The last
two 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 reasonably quantify the first
two components for the forecast period, assuming no additional debt
is acquired in the forecast period. Amortization of deferred gains
and gains on disposal of businesses is estimated to be approximately
$52.0 after-tax million while interest expense is estimated to be
approximately $9.0 after-tax million.
|
|
|
|
A summary of net operating income disclosed items is included on page 21
of the company's Financial Supplement, which is available in the
Investor Relations section of www.assurant.com.
|
|
|
|
|
|
|
|
|
Assurant, Inc.
|
|
|
|
|
|
|
|
|
Consolidated Statement of Operations (unaudited)
|
|
|
|
|
|
|
|
|
Three Months and Nine Months Ended September 30, 2016 and 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q
|
|
9 Months
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(in thousands except number of shares and per share amounts)
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
Net earned premiums
|
|
$
|
1,215,133
|
|
$
|
2,058,421
|
|
|
$
|
3,832,595
|
|
$
|
6,356,241
|
Fees and other income
|
|
|
347,693
|
|
|
317,523
|
|
|
|
1,033,688
|
|
|
920,694
|
Net investment income
|
|
|
124,798
|
|
|
148,766
|
|
|
|
380,325
|
|
|
468,825
|
Net realized gains on investments
|
|
|
10,704
|
|
|
6,203
|
|
|
|
194,048
|
|
|
22,157
|
Gain on pension plan curtailment
|
|
|
-
|
|
|
-
|
|
|
|
29,578
|
|
|
-
|
Amortization of deferred gains and gains on disposal of businesses
|
|
|
135,840
|
|
|
3,243
|
|
|
|
309,254
|
|
|
9,743
|
Total revenues
|
|
|
1,834,168
|
|
|
2,534,156
|
|
|
|
5,779,488
|
|
|
7,777,660
|
Benefits, losses and expenses
|
|
|
|
|
|
|
|
|
Policyholder benefits
|
|
|
435,173
|
|
|
1,254,205
|
|
|
|
1,379,803
|
|
|
3,732,646
|
Selling, underwriting, general and administrative expenses
|
|
|
1,164,131
|
|
|
1,298,423
|
|
|
|
3,562,067
|
|
|
3,912,712
|
Interest expense
|
|
|
14,006
|
|
|
13,779
|
|
|
|
43,741
|
|
|
41,335
|
Total benefits, losses and expenses
|
|
|
1,613,310
|
|
|
2,566,407
|
|
|
|
4,985,611
|
|
|
7,686,693
|
Income before provision for income taxes
|
|
|
220,858
|
|
|
(32,251
|
)
|
|
|
793,877
|
|
|
90,967
|
Provision (benefit) for income taxes
|
|
|
76,491
|
|
|
(25,229
|
)
|
|
|
259,843
|
|
|
15,156
|
Net income (loss)
|
|
$
|
144,367
|
|
$
|
(7,022
|
)
|
|
$
|
534,034
|
|
$
|
75,811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.40
|
|
$
|
(0.10
|
)
|
|
$
|
8.54
|
|
$
|
1.10
|
Diluted
|
|
$
|
2.37
|
|
$
|
(0.10
|
)
|
|
$
|
8.46
|
|
$
|
1.09
|
|
|
|
|
|
|
|
|
|
Dividends per share
|
|
$
|
0.50
|
|
$
|
0.30
|
|
|
$
|
1.50
|
|
$
|
0.87
|
|
|
|
|
|
|
|
|
|
Share data:
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding
|
|
|
60,262,073
|
|
|
67,632,920
|
|
|
|
62,522,980
|
|
|
68,646,043
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
|
60,828,341
|
|
|
67,632,920
|
|
|
|
63,093,320
|
|
|
69,341,886
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assurant, Inc.
|
|
|
|
|
|
|
Consolidated Condensed Balance Sheets (unaudited)
|
|
|
|
|
|
|
At September 30, 2016 and Dec. 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
December 31,
|
|
|
2016
|
|
|
|
2015
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Investments and cash and cash equivalents
|
|
$
|
13,149,713
|
|
|
|
$
|
14,283,077
|
Reinsurance recoverables
|
|
|
9,059,947
|
|
|
|
|
7,470,403
|
Deferred acquisition costs
|
|
|
3,034,091
|
|
|
|
|
3,150,934
|
Goodwill
|
|
|
839,681
|
|
|
|
|
833,512
|
Assets held in separate accounts
|
|
|
1,738,940
|
|
|
|
|
1,798,104
|
Other assets
|
|
|
2,461,464
|
|
|
|
|
2,500,372
|
Total assets
|
|
$
|
30,283,836
|
|
|
|
$
|
30,036,402
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Policyholder benefits and claims payable
|
|
$
|
13,440,351
|
|
|
|
$
|
13,363,413
|
Unearned premiums
|
|
|
6,443,266
|
|
|
|
|
6,423,720
|
Debt
|
|
|
1,165,557
|
|
|
|
|
1,164,656
|
Liabilities related to separate accounts
|
|
|
1,738,940
|
|
|
|
|
1,798,104
|
Deferred gain on disposal of businesses
|
|
|
318,411
|
|
|
|
|
92,327
|
Accounts payable and other liabilities
|
|
|
2,672,397
|
|
|
|
|
2,670,215
|
Total liabilities
|
|
|
25,778,922
|
|
|
|
|
25,512,435
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
Equity, excluding accumulated other comprehensive income
|
|
|
4,176,808
|
|
|
|
|
4,405,418
|
Accumulated other comprehensive income
|
|
|
328,106
|
|
|
|
|
118,549
|
Total stockholders' equity
|
|
|
4,504,914
|
|
|
|
|
4,523,967
|
Total liabilities and stockholders' equity
|
|
$
|
30,283,836
|
|
|
|
$
|
30,036,402
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161025006666/en/
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