Strong Second Quarter Earnings and EPS Growth
With Continued Strength in Global Housing
Company Increases 2024 Outlook to Deliver High
Single-Digit Growth in Adjusted EBITDA with Low Double-Digit
Adjusted EPS Growth, Both Ex. Catastrophes
Assurant, Inc. (NYSE: AIZ), a leading global business services
company that supports, protects and connects major consumer
purchases, today reported results for the second quarter ended June
30, 2024.
“Our second quarter and year-to-date results demonstrate the
continued strength of our portfolio of businesses, led by strong
performance in Global Housing. Our performance highlights the
compelling products and services we provide to our clients and
end-consumers as well as the attractiveness of Assurant as an
investment. As we enter the second half of 2024, we will continue
to strengthen our position as a market leader throughout our
businesses by investing in new client partnerships and launching
innovative solutions,” said Assurant President and CEO Keith
Demmings.
“Given our strong year-to-date performance, we are increasing
our 2024 enterprise outlook. We now expect Adjusted EBITDA to
increase high single-digits and Adjusted earnings per share to grow
low double-digits, both excluding reportable catastrophes. In
addition, we expect to be on the high end of our $200-$300 million
share repurchase range, reflecting our strong capital position and
comprehensive catastrophe reinsurance program,” Demmings added.
Note: The metrics included within the company’s outlook are
non-GAAP financial measures and the company believes that it
cannot, without unreasonable efforts, forecast certain information
needed to reconcile to the GAAP measures, the probable significance
of which cannot be determined. More information can be found in the
Non-GAAP Financial Measures section.
(Unaudited)
Q2'24
Q2'23
Change
6M'24
6M'23
Change
$ in millions, except per share
data
GAAP net income
188.7
156.3
21%
425.1
269.9
58%
Adjusted EBITDA1
323.4
323.1
—%
694.1
566.0
23%
Adjusted EBITDA, ex. reportable
catastrophes2
369.1
336.5
10%
752.8
629.8
20%
GAAP net income per diluted share
3.58
2.90
23%
8.05
5.01
61%
Adjusted earnings per diluted share3
4.08
3.89
5%
8.86
6.64
33%
Adjusted earnings, ex. reportable
catastrophes, per diluted share4
4.77
4.09
17%
9.74
7.57
29%
Some of the metrics throughout this press release are non-GAAP
measures of performance. A full reconciliation of each non-GAAP
measure to the most comparable GAAP measure can be found in the
Non-GAAP Financial Measures section.
Second Quarter 2024
Summary
- GAAP net income increased 21 percent to $188.7 million,
compared to the prior year period, while net income per diluted
share increased 23 percent to $3.58 versus the prior year
period.
- Adjusted EBITDA, excluding reportable catastrophes2, increased
10 percent to $369.1 million, or 11 percent on a constant currency
basis5.
- Adjusted earnings, excluding reportable catastrophes, per
diluted share4, increased 17 percent to $4.77.
- Holding company liquidity was $735 million; returned $80
million to shareholders via share repurchases and common stock
dividends.
2024 Outlook
The company now expects:
- Adjusted EBITDA, excluding reportable catastrophes6, to
increase high single-digits, led by strong growth in Global
Housing, with modest growth in Global Lifestyle.
- Adjusted earnings, excluding reportable catastrophes, per
diluted share6, growth rate to increase low double-digits,
excluding reportable catastrophes. Note: The metrics included
within the company’s outlook are non-GAAP financial measures and
the company believes that it cannot, without unreasonable efforts,
forecast certain information needed to reconcile to the GAAP
measures, the probable significance of which cannot be determined.
More information can be found in the Non-GAAP Financial Measures
section.
Second Quarter 2024 Consolidated Results
(Unaudited)
Q2'24
Q2'23
Change
6M'24
6M'23
Change
$ in millions
GAAP net income
188.7
156.3
21%
425.1
269.9
58%
Adjusted
EBITDA
Global Lifestyle
189.7
197.0
(4)%
397.4
395.9
—%
Global Housing
160.9
154.6
4%
353.4
223.0
58%
Corporate and Other
(27.2)
(28.5)
5%
(56.7)
(52.9)
(7)%
Adjusted EBITDA1
323.4
323.1
—%
694.1
566.0
23%
Reportable catastrophes
45.7
13.4
58.7
63.8
Adjusted EBITDA, ex.
reportable catastrophes
Global Lifestyle2
189.9
197.0
(4)%
397.7
396.8
—%
Global Housing2
206.4
168.0
23%
411.8
285.9
44%
Corporate and Other
(27.2)
(28.5)
5%
(56.7)
(52.9)
(7)%
Adjusted EBITDA, ex. reportable
catastrophes2
369.1
336.5
10%
752.8
629.8
20%
Note: Adjusted EBITDA of the Global Lifestyle, Global Housing
and Corporate and Other segments is the segment measure of
profitability in our GAAP financial statements and includes
reportable catastrophes. Additional details regarding key financial
metrics are included in the Financial Supplement located on
Assurant’s Investor Relations website:
https://ir.assurant.com/investor/default.aspx
Second Quarter 2024 Consolidated Results
- GAAP net income increased to $188.7 million, compared to
second quarter 2023 of $156.3 million, primarily due to a lower
after-tax loss from non-core operations and a lower effective tax
rate.
- GAAP net income per diluted share increased to
$3.58 compared to second quarter 2023 of $2.90. The increase was
primarily driven by the factors noted above.
- Adjusted EBITDA1 was relatively flat at $323.4 million
compared to the prior year period of $323.1 million. Results
included $32.3 million of higher pre-tax reportable catastrophes.
Excluding reportable catastrophes, Adjusted EBITDA2 increased 10
percent, or 11 percent on a constant currency basis5, to $369.1
million, primarily from higher top-line growth in Homeowners within
Global Housing.
- Adjusted earnings, excluding reportable catastrophes, per
diluted share4, increased 17 percent to $4.77 compared to the
prior year period of $4.09, primarily from higher Global Housing
earnings.
- Net earned premiums, fees and other income from the
Global Lifestyle and Global Housing segments totaled $2.82 billion
compared to $2.65 billion in second quarter 2023, up 6 percent, or
7 percent on a constant currency basis5, driven by growth across
both segments.
Global Lifestyle
$ in millions
Q2'24
Q2'23
Change
6M'24
6M'23
Change
Adjusted EBITDA
189.7
197.0
(4)%
397.4
395.9
—%
Net earned premiums, fees and other
income
2,183.5
2,108.9
4%
4,371.3
4,149.2
5%
- Adjusted EBITDA decreased 4 percent compared to second
quarter 2023, or 2 percent on a constant currency basis5. The
decrease was primarily driven by lower Global Automotive results
from ongoing elevated claims costs from inflation and elevated
losses within select ancillary products. Connected Living results
decreased slightly mainly from investments in new client programs
and capabilities, lower mobile trade-in volumes and unfavorable
foreign exchange. This was partially offset by growth in global
mobile device protection programs, including impacts from increased
subscribers, and higher U.S. financial services profitability.
- Net earned premiums, fees and other income increased 4
percent compared to second quarter 2023, including on a constant
currency basis5, primarily driven by Connected Living from mobile
growth, including contributions from newly launched trade-in
programs and global device protection programs.
Global Housing
$ in millions
Q2'24
Q2'23
Change
6M'24
6M'23
Change
Adjusted EBITDA
160.9
154.6
4%
353.4
223.0
58%
Reportable catastrophes
45.5
13.4
58.4
62.9
Adjusted EBITDA, ex. reportable
catastrophes2
206.4
168.0
23%
411.8
285.9
44%
Net earned premiums, fees and other
income
633.6
536.6
18%
1,205.8
1,041.9
16%
- Adjusted EBITDA increased 4 percent compared to second
quarter 2023. Results included $32.1 million of higher pre-tax
reportable catastrophes. Excluding reportable catastrophes,
Adjusted EBITDA2 increased 23 percent, primarily from continued
top-line growth within Homeowners, including higher policies
in-force from new lender-placed programs and portfolios. Results
also benefited from ongoing expense leverage from scale and
operational efficiencies. The increase was partially offset by
$10.7 million of unfavorable year-over-year net impact to prior
period reserve development. Second quarter 2024 had $17 million of
favorable development compared to $28 million in second quarter
2023.
- Net earned premiums, fees and other income increased 18
percent compared to second quarter 2023, mainly driven by
Homeowners top-line growth, including growth in policies in-force
and higher average premiums within lender-placed.
Corporate and Other
$ in millions
Q2'24
Q2'23
Change
6M'24
6M'23
Change
Adjusted EBITDA
(27.2)
(28.5)
5%
(56.7)
(52.9)
(7)%
- Adjusted EBITDA loss improved in second quarter 2024
compared to the prior year period, primarily driven by higher net
investment income from higher asset levels and yields.
Holding Company Liquidity Position
- Holding company liquidity totaled $735 million as of
June 30, 2024, or $510 million above the company’s targeted minimum
level of $225 million.
Dividends paid by the operating segments to the holding company
in second quarter 2024 totaled $142 million.
- Share repurchases and common stock dividends totaled $80
million in second quarter 2024. During second quarter 2024,
Assurant repurchased approximately 234 thousand shares of common
stock for $40 million and paid $40 million in common stock
dividends. From July 1 through August 2, 2024, the company
repurchased approximately 117 thousand shares for $20 million, with
$575 million remaining under the current repurchase
authorization.
2024 Company Outlook6
Note: Some of the metrics included within the
company’s outlook are non-GAAP financial measures and the company
believes that it cannot, without unreasonable efforts, forecast
certain information needed to reconcile to the GAAP measures, the
probable significance of which cannot be determined. More
information can be found in the Non-GAAP Financial Measures
section.
Based on current market conditions, for full
year 2024, the company now expects:
$ in millions, except per share
data
FY 2023
6M'24
2024 Outlook6
Adjusted EBITDA, ex. reportable
catastrophes2
1,369.3
752.8
High single-digit growth
Adjusted earnings, ex. reportable
catastrophes, per diluted share4
$17.13
$9.74
Low double-digit growth
- Adjusted EBITDA, excluding reportable catastrophes6, to
increase by high single-digits, led by strong growth in Global
Housing and modest growth in Global Lifestyle.
- Global Housing Adjusted EBITDA, excluding reportable
catastrophes6, to deliver strong growth, mainly driven by
top-line growth in Homeowners, benefits from expense leverage and
lower catastrophe reinsurance premiums. First half 2024 included
$47 million of favorable prior year reserve development.
- Global Lifestyle Adjusted EBITDA to increase modestly.
The company continues to expect organic growth and improved
profitability in Connected Living programs, partially offset by
investments to support growth, including new client and program
implementation expenses. We now expect Global Automotive to be flat
to modestly down due to continued loss pressure from inflation and
elevated losses in select ancillary products. Implemented rate
actions are expected to drive improvement over time. We continue to
monitor the impact from macroeconomic conditions, including
inflation, foreign exchange and interest rate levels, which have
impacted and may continue to impact the pace and timing of
growth.
- Corporate and Other Adjusted EBITDA loss to approximate
$110 million.
- Adjusted earnings, excluding reportable catastrophes, per
diluted share6 growth rate to increase by low double-digits.
The company now expects a lower effective tax rate of approximately
19 to 21 percent, and continues to expect depreciation expense of
approximately $130 million, interest expense of approximately $107
million and amortization of purchased intangible assets of
approximately $70 million.
- Business segment dividends to approximate two-thirds of segment
Adjusted EBITDA, including reportable catastrophes6. This is
subject to the business and investment portfolio performance, and
rating agency and regulatory capital requirements.
- Capital deployment priorities to focus on maintaining a strong
financial position, supporting business growth by funding
investments and M&A, and returning capital to shareholders
through common stock dividends and share repurchases, subject to
Board approval.
Earnings Conference Call
The second quarter 2024 earnings conference call and webcast
will be held on Wednesday, August 7, 2024 at 8:00 a.m. E.T. The
slide presentation used by management during the webcast includes
supplemental information and will be available on Assurant’s
Investor Relations website prior to the conference call. The live
and archived webcast, along with supplemental information, will
also be available on Assurant’s Investor Relations website:
https://ir.assurant.com/investor/default.aspx
About Assurant
Assurant, Inc. (NYSE: AIZ) is a leading global business services
company that supports, protects and connects major consumer
purchases. A Fortune 500 company with a presence in 21 countries,
Assurant supports the advancement of the connected world by
partnering with the world’s leading brands to develop innovative
solutions and to deliver an enhanced customer experience through
mobile device solutions, extended service contracts, vehicle
protection services, renters insurance, lender-placed insurance
products and other specialty products.
Learn more at assurant.com
Safe Harbor Statement
Some of the statements in this news release and its exhibits,
including our outlook, business and financial plans and any
statements regarding the company’s anticipated future financial
performance, business prospects, growth and operating strategies
and similar matters, may constitute forward-looking statements
within the meaning of the U.S. Private Securities Litigation Reform
Act of 1995.
You can identify forward-looking statements by the use of words
such as “outlook,” “objective,” “will,” “may,” “can,”
“anticipates,” “expects,” “estimates,” “projects,” “intends,”
“plans,” “believes,” “targets,” “forecasts,” “potential,”
“approximately,” and the negative version of those words and other
words and terms with a similar meaning. Any forward-looking
statements contained in this news release or its exhibits are based
upon our historical performance and on current plans, estimates and
expectations. The inclusion of this forward-looking information
should not be regarded as a representation by us or any other
person that our future plans, estimates or expectations will be
achieved. Our actual results might differ materially from those
projected in the forward-looking statements. We undertake no
obligation to update or review any forward-looking statement,
whether as a result of new information, future events or other
developments. The following factors could cause our actual results
to differ materially from those currently estimated by management,
including those projected in the company outlook:
- the loss of significant clients, distributors or other parties
with whom we do business, or if we are unable to renew contracts
with them on favorable terms, or if they disintermediate us, or if
those parties face financial, reputational or regulatory
issues;
- significant competitive pressures, changes in customer
preferences and disruption;
- the failure to execute our strategy, including through the
continuing service of key executives, senior leaders,
highly-skilled personnel and a high-performing workforce;
- the failure to find suitable acquisitions at attractive prices,
integrate acquired businesses or divest of non-strategic businesses
effectively or achieve organic growth;
- our inability to recover should we experience a business
continuity event;
- the failure to manage vendors and other third parties on whom
we rely to conduct business and provide services to our
clients;
- risks related to our international operations;
- declines in the value and availability of mobile devices, and
regulatory compliance or other risks in our mobile business;
- our inability to develop and maintain distribution sources or
attract and retain sales representatives and executives with key
client relationships;
- risks associated with joint ventures, franchises and
investments in which we share ownership and management with third
parties;
- the impact of catastrophe and non-catastrophe losses, including
as a result of the current inflationary environment and climate
change;
- negative publicity relating to our business, industry or
clients;
- the impact of general economic, financial market and political
conditions (including the Israel-Hamas war) and conditions in the
markets in which we operate, including the current inflationary
environment;
- the adequacy of reserves established for claims and our
inability to accurately predict and price for claims and other
costs;
- a decline in financial strength ratings of our insurance
subsidiaries or in our corporate senior debt ratings;
- fluctuations in exchange rates, including in the current
environment;
- an impairment of goodwill or other intangible assets;
- the failure to maintain effective internal control over
financial reporting;
- unfavorable conditions in the capital and credit markets;
- a decrease in the value of our investment portfolio, including
due to market, credit and liquidity risks, and changes in interest
rates;
- an impairment in the value of our deferred tax assets;
- the unavailability or inadequacy of reinsurance coverage and
the credit risk of reinsurers, including those to whom we have sold
business through reinsurance;
- the credit risk of some of our agents, third-party
administrators and clients;
- the inability of our subsidiaries to pay sufficient dividends
to the holding company and limitations on our ability to declare
and pay dividends or repurchase shares;
- limitations in the analytical models we use to assist in our
decision-making;
- the failure to effectively maintain and modernize our
technology systems and infrastructure, or the failure to integrate
those of acquired businesses;
- breaches of our technology systems or those of third parties
with whom we do business, or the failure to protect the security of
data in such systems, including due to cyberattacks and as a result
of working remotely;
- the costs of complying with, or the failure to comply with,
extensive laws and regulations to which we are subject, including
those related to privacy, data security, data protection and
tax;
- the impact of litigation and regulatory actions;
- reductions or deferrals in the insurance premiums we
charge;
- changes in insurance, tax and other regulations, including the
Inflation Reduction Act of 2022;
- volatility in our common stock price and trading volume;
and
- employee misconduct.
For additional information on factors that could affect our
actual results, please refer to the factors identified in the
reports we file with the U.S. Securities and Exchange Commission,
including the risk factors identified in our most recent Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q.
Non-GAAP Financial Measures
Assurant uses the following non-GAAP financial measures to
analyze the company’s operating performance. Assurant’s non-GAAP
financial measures should not be considered in isolation or as a
substitute for GAAP financial measures. Because Assurant’s
calculation of these measures may differ from similar measures used
by other companies, investors should be careful when comparing
Assurant’s non-GAAP financial measures to those of other
companies.
(1)
Assurant uses Adjusted EBITDA as
an important measure of the company’s operating performance.
Assurant defines Adjusted EBITDA as net income, excluding net
realized losses (gains) on investments and fair value changes to
equity securities, non-core operations, restructuring costs related
to strategic exit activities, Assurant Health runoff operations,
interest expense, provision (benefit) for income taxes,
depreciation expense, amortization of purchased intangible assets,
as well as other highly variable or unusual items. The company
believes this metric provides investors with an important measure
of the company’s operating performance because it excludes items
that do not represent the ongoing operations of the company, and
therefore (i) enhances management’s and investors’ ability to
analyze the ongoing operations of its businesses and (ii)
facilitates comparisons of its operating performance over multiple
periods, including because the amortization expense associated with
purchased intangible assets may fluctuate from period to period
based on the timing, size, nature and number of acquisitions.
Although the company excludes amortization of purchased intangible
assets from Adjusted EBITDA, revenue generated from such intangible
assets is included within the revenue in determining Adjusted
EBITDA. The comparable GAAP measure is net income. See Note 2 below
for a full reconciliation.
(2)
Adjusted EBITDA, Excluding
Reportable Catastrophes: Assurant uses Adjusted EBITDA (defined
above), excluding reportable catastrophes (which represents
individual catastrophic events that generate losses in excess of
$5.0 million, pre-tax, net of reinsurance and client profit sharing
adjustments and including reinstatement and other premiums), as
another important measure of the company’s operating performance.
The company believes this metric provides investors with an
important measure of the company’s operating performance for the
reasons noted above, and because it excludes reportable
catastrophes, which can be volatile. The comparable GAAP measure is
net income.
(UNAUDITED)
2Q
2Q
6 Months
6 Months
12 Months
($ in millions)
2024
2023
2024
2023
2023
GAAP net income
$
188.7
$
156.3
$
425.1
$
269.9
$
642.5
Less:
Interest expense
26.7
27.2
53.5
54.2
108.0
Provision for income taxes
44.2
48.0
100.7
81.5
164.3
Depreciation expense
30.0
25.4
60.6
51.8
109.3
Amortization of purchased intangible
assets
17.3
18.7
34.9
37.4
77.9
Adjustments, pre-tax:
Net realized losses on investments and
fair value changes to equity securities
19.6
20.0
28.4
30.6
68.7
Non-core operations
3.7
30.2
6.3
42.4
50.4
Restructuring costs
1.2
(1.3
)
1.2
5.1
34.3
Assurant Health runoff operations
—
—
(0.4
)
(7.5
)
(6.9
)
Other adjustments(1)
(8.0
)
(1.4
)
(16.2
)
0.6
9.0
Adjusted EBITDA
323.4
323.1
694.1
566.0
1,257.5
Reportable catastrophes
45.7
13.4
58.7
63.8
111.8
Adjusted EBITDA, excluding reportable
catastrophes
$
369.1
$
336.5
$
752.8
$
629.8
$
1,369.3
(1)
Additional details about the
components of Other adjustments and other key financial metrics
throughout this press release are included in the Financial
Supplement located on Assurant’s Investor Relations website:
https://ir.assurant.com/investor/default.aspx
(UNAUDITED)
2Q 2024
2Q 2023
Global Lifestyle
Global Housing
Global Lifestyle
Global Housing
($ in millions)
Adjusted EBITDA
$
189.7
$
160.9
$
197.0
$
154.6
Reportable catastrophes
0.2
45.5
—
13.4
Adjusted EBITDA, excluding reportable
catastrophes
$
189.9
$
206.4
$
197.0
$
168.0
(UNAUDITED)
6 Months 2024
6 Months 2023
Global Lifestyle
Global Housing
Global Lifestyle
Global Housing
($ in millions)
Adjusted EBITDA
$
397.4
$
353.4
$
395.9
$
223.0
Reportable catastrophes
0.3
58.4
0.9
62.9
Adjusted EBITDA, excluding reportable
catastrophes
$
397.7
$
411.8
$
396.8
$
285.9
(3)
Adjusted Earnings per Diluted
Share: Assurant uses Adjusted earnings per diluted share as an
important measure of the company’s stockholder value. Assurant
defines Adjusted earnings per diluted share as net income,
excluding net realized losses (gains) on investments and fair value
changes to equity securities, amortization of purchased intangible
assets, non-core operations, restructuring costs related to
strategic exit activities, Assurant Health runoff operations, as
well as other highly variable or unusual items, divided by the
weighted average diluted shares outstanding. The company believes
this metric provides investors with an important measure of
stockholder value because it excludes items that do not represent
the ongoing operations of the company, and therefore (i) enhances
management’s and investors’ ability to analyze the ongoing
operations of its businesses and (ii) facilitates comparisons of
its operating performance over multiple periods, including because
the amortization expense associated with purchased intangible
assets may fluctuate from period to period based on the timing,
size, nature and number of acquisitions. Although the company
excludes amortization of purchased intangible assets from Adjusted
earnings, revenue generated from such intangible assets is included
within the revenue in determining Adjusted earnings. The comparable
GAAP measure is net income per diluted share, defined as net
income, divided by the weighted average diluted shares outstanding.
See Note 4 below for a full reconciliation.
(4)
Adjusted Earnings, Excluding
Reportable Catastrophes, per Diluted Share: Assurant uses Adjusted
earnings, excluding reportable catastrophes, per diluted share
(each as defined above) as another important measure of the
company’s stockholder value. The company believes this metric
provides investors with an important measure of stockholder value
for the reasons noted above, and because it excludes reportable
catastrophes, which can be volatile. The comparable GAAP measure is
net income per diluted share (defined above).
(UNAUDITED)
2Q
2Q
6 Months
6 Months
12 Months
($ in millions)
2024
2023
2024
2023
2023
GAAP net income
$
188.7
$
156.3
$
425.1
$
269.9
$
642.5
Adjustments, pre-tax:
Net realized losses on investments and
fair value changes to equity securities
19.6
20.0
28.4
30.6
68.7
Amortization of purchased intangible
assets
17.3
18.7
34.9
37.4
77.9
Non-core operations
3.7
30.2
6.3
42.4
50.4
Restructuring costs
1.2
(1.3
)
1.2
5.1
34.3
Assurant Health runoff operations
—
—
(0.4
)
(7.5
)
(6.9
)
Other adjustments
(8.0
)
(1.4
)
(16.2
)
0.6
9.0
Benefit for income taxes
(7.2
)
(13.0
)
(11.4
)
(21.1
)
(43.0
)
Adjusted earnings
215.3
209.5
467.9
357.4
832.9
Reportable catastrophes, pre-tax
45.7
13.4
58.7
63.8
111.8
Tax impact of reportable catastrophes
(9.6
)
(2.8
)
(12.3
)
(13.4
)
(23.5
)
Adjusted earnings, excluding reportable
catastrophes
$
251.4
$
220.1
$
514.3
$
407.8
$
921.2
(UNAUDITED)
2Q
2Q
6 Months
6 Months
12 Months
2024
2023
2024
2023
2023
GAAP net income per diluted
share(1)
$
3.58
$
2.90
$
8.05
$
5.01
$
11.95
Adjustments, pre-tax:
Net realized losses on investments and
fair value changes to equity securities
0.37
0.37
0.54
0.57
1.28
Amortization of purchased intangible
assets
0.33
0.35
0.66
0.69
1.45
Non-core operations
0.07
0.56
0.12
0.79
0.94
Restructuring costs
0.02
(0.03
)
0.02
0.09
0.64
Assurant Health runoff operations
—
—
(0.01
)
(0.14
)
(0.13
)
Other adjustments
(0.16
)
(0.02
)
(0.31
)
0.01
0.16
Benefit for income taxes
(0.13
)
(0.24
)
(0.21
)
(0.38
)
(0.80
)
Adjusted earnings, per diluted
share
4.08
3.89
8.86
6.64
15.49
Reportable catastrophes, pre-tax
0.87
0.25
1.11
1.18
2.08
Tax impact of reportable catastrophes
(0.18
)
(0.05
)
(0.23
)
(0.25
)
(0.44
)
Adjusted earnings, excluding reportable
catastrophes, per diluted share
$
4.77
$
4.09
$
9.74
$
7.57
$
17.13
(1)
Information on the share counts
used in the per share calculations throughout this press release
are included in the Financial Supplement located on Assurant’s
Investor Relations website:
https://ir.assurant.com/investor/default.aspx
(5)
Constant Currency: Represents a
non-GAAP financial measure. Excludes the impact of changes in
foreign currency exchange rates used in the translation of the
income statement because they can be volatile. These amounts are
calculated by translating the comparable prior period results at
the weighted average foreign currency exchange rates used in the
current period, and it excludes the impact of foreign exchange
transaction gains (losses) associated with the remeasurement of
non-functional currencies. The company believes this information
allows investors to identify the significance of changes in foreign
currency exchange rates in period-to-period comparisons.
(UNAUDITED)
Constant Currency
2Q 2024
Percentage change in Global Lifestyle
and Global Housing net earned premiums, fees and other
income:
Including FX impact
6.5
%
FX impact
(0.3
)%
Excluding FX impact
6.8
%
Percentage change in Global Lifestyle
net earned premiums, fees and other income:
Including FX impact
3.5
%
FX impact
(0.5
)%
Excluding FX impact
4.0
%
Percentage change in GAAP net income,
including FX impact
20.7
%
Percentage change in Adjusted EBITDA,
including FX impact
0.1
%
Percentage change in Adjusted EBITDA,
excluding reportable catastrophes:
Including FX impact
9.7
%
FX impact
(0.8
)%
Excluding FX impact
10.5
%
Percentage change in Global Lifestyle
Adjusted EBITDA:
Including FX impact
(3.7
)%
FX impact
(1.4
)%
Excluding FX impact
(2.3
)%
(6)
The company outlook for Adjusted
earnings, excluding reportable catastrophes, per diluted share and
Adjusted EBITDA, excluding reportable catastrophes, for Assurant
and Global Housing, each constitute forward-looking non-GAAP
financial measures and the company believes that it cannot, without
unreasonable efforts, forecast certain information needed to
reconcile such forward-looking non-GAAP financial measures to the
most comparable GAAP measure, the probable significance of which
cannot be determined. The company is able to quantify a full-year
estimate of depreciation expense, interest expense and amortization
of purchased intangible assets, each on a pre-tax basis, and the
estimated effective tax rate, which are expected to be
approximately $130 million, $107 million, $70 million and 19 to 21
percent, respectively. Business segment dividends include a $155
million assumed annual catastrophe load as of February 6, 2024.
Other GAAP components cannot be reliably quantified due to the
combination of variability and volatility of such components and
may, depending on the size of the components, have a significant
impact on the reconciliation.
Assurant, Inc.
Consolidated Statement of Operations
(unaudited)
Three and Six Months Ended June 30,
2024 and 2023
2Q
6 Months
2024
2023
2024
2023
($ in millions except number
of shares and per share amounts)
Revenues
Net earned premiums
$
2,444.6
$
2,343.0
$
4,821.1
$
4,608.5
Fees and other income
375.2
295.7
760.9
578.4
Net investment income
124.7
112.9
251.4
218.1
Net realized losses on investments and
fair value changes to equity securities
(19.6
)
(20.0
)
(28.4
)
(30.6
)
Total revenues
2,924.9
2,731.6
5,805.0
5,374.4
Benefits, losses and expenses
Policyholder benefits
696.1
632.5
1,319.2
1,278.1
Underwriting, selling, general and
administrative expenses
1,969.2
1,867.6
3,906.5
3,690.8
Interest expense
26.7
27.2
53.5
54.2
Gain on extinguishment of debt
—
—
—
(0.1
)
Total benefits, losses and expenses
2,692.0
2,527.3
5,279.2
5,023.0
Income before provision for income
taxes
232.9
204.3
525.8
351.4
Provision for income taxes
44.2
48.0
100.7
81.5
Net income
$
188.7
$
156.3
$
425.1
$
269.9
Net income per share:
Basic
$
3.59
$
2.91
$
8.09
$
5.03
Diluted
$
3.58
$
2.90
$
8.05
$
5.01
Common stock dividends per
share
$
0.72
$
0.70
$
1.44
$
1.40
Share data:
Basic weighted average shares
outstanding
52,500,727
53,745,611
52,516,296
53,619,711
Diluted weighted average shares
outstanding
52,717,736
53,889,682
52,814,956
53,843,035
Assurant, Inc.
Consolidated Condensed Balance Sheets
(unaudited)
At June 30, 2024 and December 31,
2023
June 30,
December 31,
2024
2023
($ in millions)
Assets
Investments and cash and cash
equivalents
$
10,238.0
$
9,848.3
Reinsurance recoverables
6,727.9
6,649.2
Deferred acquisition costs
10,041.0
9,967.2
Goodwill
2,618.4
2,608.8
Value of business acquired
20.8
83.9
Other assets
4,126.9
4,477.8
Total assets
$
33,773.0
$
33,635.2
Liabilities
Policyholder benefits and claims
payable
$
2,626.7
$
2,476.4
Unearned premiums
20,245.3
20,110.4
Debt
2,081.8
2,080.6
Accounts payable and other liabilities
3,814.9
4,158.3
Total liabilities
28,768.7
28,825.7
Stockholders’ equity
Equity, excluding accumulated other
comprehensive loss
5,857.0
5,574.5
Accumulated other comprehensive loss
(852.7
)
(765.0
)
Total equity
5,004.3
4,809.5
Total liabilities and equity
$
33,773.0
$
33,635.2
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240806329432/en/
Media Contact:
Stacie Sherer Vice President, Corporate Communications Phone:
917.420.0980 stacie.sherer@assurant.com
Investor Relations Contacts:
Rebekah Biondo Deputy CFO Phone: 786.374.7283
rebekah.biondo@assurant.com
Sean Moshier Vice President, Investor Relations Phone:
914.204.2253 sean.moshier@assurant.com
Matt Cafarchio Director, Investor Relations Phone: 484.356.4791
matt.cafarchio@assurant.com
Assurant (NYSE:AIZ)
Historical Stock Chart
From Nov 2024 to Dec 2024
Assurant (NYSE:AIZ)
Historical Stock Chart
From Dec 2023 to Dec 2024
