Assurant reports 3Q 2020
In late October Assurant hinted that they will be divesting what they call their Global Preneed business. That segment of their business consists of preneed funeral insurance products and Final Need insurance products.
In reporting the company’s 3rd Quarter financial results, CEO Alan Colberg gave another hint as to the Global Preneed business potentially disappearing from the Assurant portfolio of businesses. He did not mention Global Preneed at all when he said of 3Q results, “Our third quarter 2020 performance further underscores the resiliency and strength of our market-leading lifestyle and housing businesses, and the attractive growth opportunities ahead. . “
He then went on to say, “With our recently announced acquisition of HYLA Mobile and the evaluation of strategic alternatives for Global Preneed, we are deepening our focus on the many opportunities being driven by the convergence of the connected mobile device, car and home.”
So, at least from my point of view, reading between the lines, it does appear that Global Preneed may, indeed be on the shopping block at Assurant. They also seem to have concentrated on the home, mobile device, and automobile insurance and warranty businesses as they have taken on the slogan that the 2020’s are the “Connected Decade”. That’s “connected” as in smart technology adoption.
In any regard the results for Assurant’s Global Preneed division in the 3rd Quarter was Net Operating Income of $13.2 million which is greater than the same period of 2019, until you realize that in 2019 a $9.9 million one-time charge was taken against earnings for an “accounting adjustment”. If you added that charge back in to the 2019 income, then 3Q 2020 would be about 24% less than 2019 for the period.
Net earned premiums for 3Q 2020 and 9 month 2020 are higher than the same periods of 2019. However, the report states that premiums are increased, “primarily driven by prior period sales of the Final Need product“.
You can access the Assurant 3Q 2020 report here.
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