(Reuters) – Insurer Assurant reported a 21% jump in second-quarter profit on Tuesday, 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 ended June 30, from $112.9 million a year earlier.
Risk-averse insurers allocate a major chunk of their investment portfolio in 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 the company have risen 1% so far this year, underperforming an 8.7% gain in the benchmark S&P 500 index.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shilpi Majumdar)
Comments