Assurant, Inc. Q1 2010 Earnings Call Transcript

First, the overall number of mortgage loans number of mortgage loans outstanding is declining, particularly, subprime since new loan originations are at low levels. Second, we expect placement rates to peak soon and return to more normal levels in the years ahead. And finally, portfolio consolidation will tighten margins requiring us to be even more vigilant in managing expenses. The team at Specialty Property continues to execute at a high level and maintains its leading position in the credit replace business.

At Assurant Solutions, we were satisfied with our growth in target areas under difficult market conditions. Our business continues to be impacted by high unemployment in the UK. In addition, the European economy is struggling to recover. We were pleased to see sequential improvement in the international combined ratio. We have made solid progress in reshaping our European business during the past several months and we expect international combined ratios to continue to improve on average by 100 basis points to 200 basis points per quarter for the rest of the year.

In the U.S. Assurant Solutions continues to create opportunities to grow rather than wait for economic recovery. We were pleased to enter into a contract with Lowe’s the home improvement retailer which will be later this year.

Our strategy to partner with original equipment manufacturers is also gaining traction and we are benefiting from our preneed partnership with SCI which continues to add new funeral homes.

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