Assurant, Inc. (AIZ) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $144.37 million, or $ 2.37 a share in the quarter, against a net loss of $7.02 million, or $0.10 a share in the last year period.
Revenue during the quarter dropped 27.62 percent to $1,834.17 million from $2,534.16 million in the previous year period. Net premium earned for the quarter dropped 40.97 percent or $843.29 million to $1,215.13 million.
Benefits, losses and expenses for the quarter were at $1,613.31 million, or 132.77 percent of premium earned from $2,566.41 million or 124.68 percent of premium earned in the last year period. Operating income for the quarter was $220.86 million, compared with an operating loss of $32.25 million in the previous year period.
Net investment income was at $124.80 million for the quarter, down 16.11 percent or $23.97 million from year-ago period. Meanwhile, income from fees and commission for the quarter increased by 9.50 percent or $30.17 million to $347.69 million. The company has recorded a gain on investments of $10.70 million in the quarter compared with a gain of $6.20 million for the previous year period.
"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 chief executive officer, 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."
Total assets decreased 0.99 percent or $302.26 million to $30,283.84 million on Sep. 30, 2016. Return on assets stood at 0.52 percent in the quarter, up 0.50 from 0.02 percent in the last year period. Return on equity was at 3.20 percent in the quarter against a negative 0.15 percent in the last year period.
Meanwhile, reinsurance recoverables moved up 24.45 percent or $1,779.99 million over the year to $9,059.95 million on Sep. 30, 2016.
Total debt was almost stable over the past one year at $1,165.56 million on Sep. 30, 2016. Shareholders equity stood at $4,504.91 million as on Sep. 30, 2016, down 3.82 percent or $178.69 million from year-ago. As a result, debt to equity ratio went up 1 basis points to 0.26 percent in the quarter from 0.25 percent in the last year period.
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