Assurant Inc. (NYSE:AIZ) Q2 2020 Earnings Conference Call - Final Transcript
Aug 05, 2020 • 08:00 am ET
Welcome to Assurant's Second Quarter 2020 Earnings Conference Call and Webcast. [Operator Instructions]
It is now my pleasure to turn the floor over to Suzanne Shepherd, Senior Vice President, Investor Relations. You may be begin.
Thank you, operator, and good morning, everyone. We look forward to discussing our second quarter 2020 results with you today. Joining me for Assurant's conference call are Alan Colberg, our President and Chief Executive Officer; and Richard Dziadzio, our Chief Financial Officer.
Yesterday, after the market closed, we issued a news release announcing our results for the second quarter 2020. The release and corresponding financial supplement are available on assurant.com. We'll start today's call with brief remarks from Alan and Richard before moving into a Q&A session.
Some of the statements made today are forward-looking. Forward-looking statements are subject to risks, uncertainties and other factors that may cause actual results to differ materially from those contemplated by these statements. Additional information regarding these factors can be found in yesterday's earnings release, as well as in our SEC report.
During today's call, we will refer to non-GAAP financial measures, which we believe are important in evaluating the Company's performance. For more details on these measures, the most comparable GAAP measures and a reconciliation of the two, please refer to yesterday's news release and financial supplement.
I will now turn the call over to Alan.
Alan B. Colberg
Thanks, Suzanne. Good morning, everyone. We're pleased with our second quarter performance. We reported operating earnings per share, excluding catastrophe losses of $2.90, up 27% from the prior year period. Net operating income for the quarter, also excluding catastrophe losses was $179 million, an increase of 24% from last year, demonstrating the continued strength and resiliency of our business. Results were above our expectations, reflecting the stability of our large installed customer base, significant client partnerships and embedded growth in Global Lifestyle. We also benefited from improved results in Global Housing.
Declines in investment income and foreign exchange were more than offset by lower claims activity and expense management efforts. The initial negative impacts from COVID-19 in April gradually improved in May and June, resulting in a modest net positive to overall net operating income in the quarter. Year-to-date, net operating earnings per share, excluding catastrophe losses grew 24%, and net operating income increased 21%. Even after adjusting for $16 million of one-time items during the first half of the year, our results came in at the high-end of our model pandemic scenarios.
Given our strong performance in the first half and improved visibility for remainder of the year, we have decided to reinstate and increase our outlook for full-year 2020. We now expect 12% to 16% growth in operating earnings per share, excluding catastrophe losses, an increase from our initial outlook of 10% to 14%. This reflects continued growth in Connected Living, expansion within multifamily housing and improved profitability in our specialty business. Our outlook assumes the continuation of current business trends and, therefore, does not take into account a material increase