Assurance IQ’s losing streak continues
Prudential recently announced results for the third quarter and Assurance IQ is continuing its losing streak. The subsidiary reported a loss, on an adjusted operating income basis, of $30 million for the current quarter, reflecting the impact of “higher expenses driven by recruiting, training, and licensing costs in preparation for the Medicare annual enrollment period in the fourth quarter.” This marks the fourth straight quarterly loss for Assurance IQ since becoming a part of Prudential – in Q4 2019, Q1, 2020, and Q2, 2020 the company lost $9M, $23M, and $16M respectively. Overall, Assurance IQ lost $78 million since its acquisition for $2.3 billion.
In the earnings call, Vice Chair at Prudential Robert Falzon shared that the company is pleased with the customer demand Assurance IQ is seeing three weeks into the Medicare annual enrollment period, and EVP and Head of U.S. Businesses Andrew Sullivan expects the company to turn positive in Q4 with a $15 million profit. This follows a disappointing outcome for the previous Medicare annual enrollment period where the company saw “very strong” consumer demand which wasn’t fully met due to a lack of appointed agents.
In other Assurance IQ news, management changes are still taking place. Following the new CFO, COO, and Chief Legal Officer, the company now has a new president. Allison O’Hair, who joined Assurance IQ in 2017 as Chief Data Scientist, is now the new President, replacing co-founder Mike Paulus who held this position until September 2020.