Assurant reports 7% drop in net income in Q1 2020

Assurant, the global provider of specialty protection products and related services, has suspended its 2020 outlook citing 'COVID-19 uncertainty'. The company's first quarter results were "solid and largely unaffected" by the pandemic, according to chief executive Alan Colberg.

Assurant's net income for the quarter was $150 million, down 7 percent from $161 million in Q1 2019. The decrease was largely driven by increased unrealised losses on investments.

The company drew $200 million of its $450 million revolving credit facility in March 2020 in order to strengthen its liquidity position and capital flexibility.

Colberg said: “First quarter results were solid and largely unaffected by COVID-19. And, while we believe our business and long-term fundamentals remain strong, we’ve suspended our 2020 outlook given the ongoing uncertainty regarding the duration of the pandemic and its impact on market conditions and consumer behavior. We will proactively monitor and manage through this unprecedented crisis to continue to deliver meaningful shareholder value over time.”