Assurant Plunges as Profit Falls on Revenue Slump, Investments
By Cordell Eddings
April 30, 2009
April 30 (Bloomberg) -- Assurant Inc., the provider of health insurance and coverage for mobile homes and washing machines, led the decliners in the Standard & Poor's 500 Index after profit fell on investment losses and lower revenue.
The insurer plunged $3.18, or 11 percent, to $24.85 at 10:14 a.m. in New York Stock Exchange composite trading, the company's biggest decline in five months. Assurant has dropped about 62 percent in the past 12 months.
First-quarter net income fell 57 percent to $80.6 million, the New York-based insurer said in a statement late yesterday. The recession forced down the value of the company's holdings, contributing to a $55.7 million investment loss, and revenue declined on lower sales of group medical coverage.
"Our quarterly results reflect how the economy is challenging consumers, employers and the financial markets," Chief Executive Officer Robert Pollock said in the statement.
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