A net operating loss of $76.3 million was reported by global conglomerate Assurant yesterday. While two – Global Lifestyle and Global Preneed – of their three operating units posted profits, they were far outweighed by the losses in the Global Housing segment to produce the loss. The Global Housing unit loss of $110.3 million was principally the result of Hurricanes Harvey, Irma, and Maria and the Mexico City earthquake.
Interesting notes that we found in the report from Assurant, which you can access here, include:
- Operating Income for the Global Lifestyle unit was $42.6 million for the 3rd quarter and is at $135.2 million for the 9 months.
- Operating Income for the Global Preneed unit was $12.3 million for the 3rd quarter and $35.0 million (as compared to $31 million in 2016) for the 9 months.
- Even though the Global Housing unit suffered a $110. 3 million loss for the 3rd quarter it still is showing operating income of $7.8 million for the 9 months to date.
- Face value sales in the Global Preneed unit decreased to $220 million in the 3rd quarter as compared to $238.7 million in the same quarter of 2016. Company officials attribute this to lower sales from the regions impacted by Hurricanes Harvey and Irma.
Management indicated that on a going-forward basis that for the full year Assurant Global Preneed fee income and earnings will increase from their alignment with market leaders and operational efficiencies.
As of the close of the market yesterday, Assurant stock stood at $100.21/ share, not far from the 52-week high of $106.98 per share.
Assurant serves the death care industry through its preneed products.