On Tuesday, Insurer Assurant (NYSE: AIZ) reported a 21% jump in second-quarter profit, driven by growth in its global housing segment and higher investment returns.
The company’s global housing unit, which offers lender-placed homeowners, manufactured housing, and flood insurance, posted net earned premiums, fees, and other income of $633.6 million, an 18% jump over the year earlier.
The unit benefited from strong performance in its homeowners business, thanks to growth in policies in force and higher average premiums, the company said.
Assurant’s net investment income jumped to $124.7 million in the quarter that ended June 30, from $112.9 million a year earlier.
Risk-averse insurers allocate a major chunk of their investment portfolio to bonds, which return better yields in a high interest rate environment.
Net income rose to $188.7 million, or $3.58 per share, in the quarter, from $156.3 million, or $2.90 per share, a year earlier.
Shares of Assurant (NYSE: AIZ) have risen 1% so far this year, underperforming an 8.7% gain in the benchmark S&P 500 index.
(Source: Reuters)
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
