Strong Double-Digit Earnings Growth
Year-to-Date Led by Continued Outperformance in Global Housing
Company Increases 2024 Outlook to Deliver Low
Double-Digit Growth in Adjusted EBITDA with Mid- to High-teens
Growth in Adjusted EPS, 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 third quarter ended
September 30, 2024.
“Our third quarter performance highlights continued strength
within Global Housing with growing revenues and expense discipline.
Global Lifestyle performed in-line with expectations, as we
continued to prioritize strategic investments for growth in new and
expanded Connected Living partnerships and saw further signs of
stabilization within Global Automotive during the quarter. Across
Assurant, we are delivering greater value to our clients and their
end-consumers while establishing new growth opportunities,” said
Assurant President and CEO Keith Demmings.
“Our year-to-date execution and performance enable us to
increase our 2024 enterprise outlook. We now expect Adjusted EBITDA
to increase low double-digits and Adjusted earnings per share to
increase mid- to high-teens, both excluding reportable
catastrophes. In addition, we expect to return $300 million in
share repurchases in 2024, reflecting our strong capital position
and risk management expertise,” 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)
Q3'24
Q3'23
Change
9M'24
9M'23
Change
$ in millions, except per share
data
GAAP net income
133.8
190.1
(30)%
558.9
460.0
22%
Adjusted EBITDA1
246.9
330.7
(25)%
941.0
896.7
5%
Adjusted EBITDA, ex. reportable
catastrophes2
385.1
357.1
8%
1,137.9
986.9
15%
GAAP net income per diluted share
2.55
3.54
(28)%
10.60
8.55
24%
Adjusted earnings per diluted share3
3.00
4.29
(30)%
11.87
10.93
9%
Adjusted earnings, ex. reportable
catastrophes, per diluted share4
5.08
4.68
9%
14.83
12.25
21%
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.
Third Quarter 2024
Summary
- GAAP net income decreased 30 percent to $133.8 million,
compared to the prior year period, while net income per diluted
share decreased 28 percent to $2.55 versus the prior year
period.
- Adjusted EBITDA, excluding reportable catastrophes2, increased
8 percent to $385.1 million, or 9 percent on a constant currency
basis5.
- Adjusted earnings, excluding reportable catastrophes, per
diluted share4, increased 9 percent to $5.08.
- Holding company liquidity was $636 million; returned $138
million to shareholders via share repurchases and common stock
dividends.
2024 Outlook
The company now expects:
- Adjusted EBITDA, excluding reportable catastrophes6, to
increase low double-digits, led by strong growth in Global Housing,
with modest growth in Global Lifestyle.
- Adjusted earnings, excluding reportable catastrophes, per
diluted share6, to increase mid- to high-teens. 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.
Third Quarter 2024 Consolidated Results
(Unaudited)
Q3'24
Q3'23
Change
9M'24
9M'23
Change
$ in millions
GAAP net income
133.8
190.1
(30)%
558.9
460.0
22%
Adjusted
EBITDA
Global Lifestyle
184.3
191.8
(4)%
581.7
587.7
(1)%
Global Housing
92.4
165.1
(44)%
445.8
388.1
15%
Corporate and Other
(29.8)
(26.2)
(14)%
(86.5)
(79.1)
(9)%
Adjusted EBITDA1
246.9
330.7
(25)%
941.0
896.7
5%
Reportable catastrophes
138.2
26.4
196.9
90.2
Adjusted EBITDA, ex.
reportable catastrophes
Global Lifestyle2
185.7
192.0
(3)%
583.4
588.8
(1)%
Global Housing2
229.2
191.3
20%
641.0
477.2
34%
Corporate and Other
(29.8)
(26.2)
(14)%
(86.5)
(79.1)
(9)%
Adjusted EBITDA, ex. reportable
catastrophes2
385.1
357.1
8%
1,137.9
986.9
15%
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
Third Quarter 2024 Consolidated Results
- GAAP net income decreased to $133.8 million, compared to
third quarter 2023 of $190.1 million, primarily due to higher
reportable catastrophes within Global Housing. This was partially
offset by higher top-line growth in Homeowners within Global
Housing.
- GAAP net income per diluted share decreased to
$2.55 compared to third quarter 2023 of $3.54. The decrease was
primarily driven by the factors noted above.
- Adjusted EBITDA1 decreased to $246.9 million compared to
the prior year period of $330.7 million. Results included $111.8
million of higher pre-tax reportable catastrophes. Excluding
reportable catastrophes, Adjusted EBITDA2 increased 8 percent, or 9
percent on a constant currency basis5, to $385.1 million, primarily
from higher earnings in Global Housing.
- Adjusted earnings, excluding reportable catastrophes, per
diluted share4, increased 9 percent to $5.08 compared to the
prior year period of $4.68, mainly from higher Global Housing
earnings and the impact of share repurchases, partially offset by
higher depreciation expense.
- Net earned premiums, fees and other income from the
Global Lifestyle and Global Housing segments totaled $2.85 billion
compared to $2.66 billion in third quarter 2023, up 7 percent, or 8
percent on a constant currency basis5, driven by growth across both
segments.
Global Lifestyle
$ in millions
Q3'24
Q3'23
Change
9M'24
9M'23
Change
Adjusted EBITDA
184.3
191.8
(4)%
581.7
587.7
(1)%
Net earned premiums, fees and other
income
2,249.5
2,105.8
7%
6,620.8
6,255.0
6%
- Adjusted EBITDA decreased 4 percent compared to third
quarter 2023, or 1 percent on a constant currency basis5. The
decline was primarily driven by unfavorable foreign exchange and
modestly lower results within Global Automotive, where elevated
losses within select ancillary products were partially offset by
higher investment income. On a constant currency basis, Connected
Living5 was flat as investments in new client programs and
capabilities to support future growth were offset by growth in
mobile device protection programs from increased subscribers,
particularly in the U.S.
- Net earned premiums, fees and other income increased 7
percent compared to third quarter 2023, or 8 percent 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
Q3'24
Q3'23
Change
9M'24
9M'23
Change
Adjusted EBITDA
92.4
165.1
(44)%
445.8
388.1
15%
Reportable catastrophes
136.8
26.2
195.2
89.1
Adjusted EBITDA, ex. reportable
catastrophes2
229.2
191.3
20%
641.0
477.2
34%
Net earned premiums, fees and other
income
603.8
555.2
9%
1,809.6
1,597.1
13%
- Adjusted EBITDA decreased 44 percent compared to third
quarter 2023. Results included $110.6 million of higher pre-tax
reportable catastrophes. Excluding reportable catastrophes,
Adjusted EBITDA2 increased 20 percent, primarily from continued
top-line growth within Homeowners, including higher policies
in-force from new lender-placed programs and portfolios and
increased voluntary insurance market pressure, and $30.1 million of
favorable year-over-year prior period reserve development. The
increase was partially offset by a $27.5 million non-run rate
adjustment related to a change in earnings pattern
assumptions.
- Net earned premiums, fees and other income increased 9
percent compared to third quarter 2023, mainly driven by Homeowners
top-line growth, including growth in policies in-force and higher
average premiums within lender-placed as well as growth across
various specialty products, partially offset by the non-run rate
adjustment mentioned above.
Corporate and Other
$ in millions
Q3'24
Q3'23
Change
9M'24
9M'23
Change
Adjusted EBITDA
(29.8)
(26.2)
(14)%
(86.5)
(79.1)
(9)%
- Adjusted EBITDA loss increased in third quarter 2024
compared to the prior year period, primarily driven by higher
third-party and employee-related expenses.
Holding Company Liquidity Position
- Holding company liquidity totaled $636 million as of
September 30, 2024, or $411 million above the company’s targeted
minimum level of $225 million. Dividends paid by the operating
segments to the holding company in third quarter 2024 totaled $161
million.
- Share repurchases and common stock dividends totaled
$138 million in third quarter 2024. During third quarter 2024,
Assurant repurchased approximately 530 thousand shares of common
stock for $100 million and paid $38 million in common stock
dividends. From October 1 through November 1, 2024, the company
repurchased approximately 103 thousand shares for $20 million, for
a total of $200 million in share repurchases year-to-date. $475
million remains 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
9M'24
2024 Outlook6
Adjusted EBITDA, ex. reportable
catastrophes2
1,369.3
1,137.9
Low double-digit growth
Adjusted earnings, ex. reportable
catastrophes, per diluted share4
$17.13
$14.83
Mid- to high-teens growth
- Adjusted EBITDA, excluding reportable catastrophes6, to
increase by low double-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, favorable non-catastrophe loss
experience, benefits from expense leverage and lower catastrophe
reinsurance premiums. Year-to-date 2024 included $85 million of
favorable prior year reserve development. In fourth quarter 2024,
Hurricane Milton is expected to be a reportable catastrophe event
with losses in the range of $75 to $110 million pre-tax.
- 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 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 now
approximate $115 million.
- Adjusted earnings, excluding reportable catastrophes, per
diluted share6 growth rate to increase by mid- to high-teens.
The company now expects an effective tax rate of approximately 18
to 20 percent and depreciation expense of approximately $135
million, and continues to expect interest expense of approximately
$107 million and amortization of purchased intangible assets of
approximately $70 million.
- Business segment dividends are now expected to be below
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 third quarter 2024 earnings conference call and webcast will
be held on Wednesday, November 6, 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 $5.0 million,
pre-tax, net of reinsurance and client profit sharing adjustments
and including reinstatement and other premiums), as another
important measure of the company’s operating performance. The
company believes this metric provides investors with an important
measure of the company’s operating performance for the reasons
noted above, and because it excludes reportable catastrophes, which
can be volatile. The comparable GAAP measure is net income.
(UNAUDITED)
3Q
3Q
9 Months
9 Months
12 Months
($ in millions)
2024
2023
2024
2023
2023
GAAP net income
$
133.8
$
190.1
$
558.9
$
460.0
$
642.5
Less:
Interest expense
26.7
27.0
80.2
81.2
108.0
Provision for income taxes
17.7
38.7
118.4
120.2
164.3
Depreciation expense
38.9
25.8
99.5
77.6
109.3
Amortization of purchased intangible
assets
17.0
18.2
51.9
55.6
77.9
Adjustments, pre-tax:
Net realized losses on investments and
fair value changes to equity securities
18.3
19.1
46.7
49.7
68.7
Non-core operations
2.3
(3.0
)
8.6
39.4
50.4
Restructuring costs
(1.0
)
13.2
0.2
18.3
34.3
Assurant Health runoff operations
0.1
0.3
(0.3
)
(7.2
)
(6.9
)
Other adjustments(1)
(6.9
)
1.3
(23.1
)
1.9
9.0
Adjusted EBITDA
246.9
330.7
941.0
896.7
1,257.5
Reportable catastrophes
138.2
26.4
196.9
90.2
111.8
Adjusted EBITDA, excluding reportable
catastrophes
$
385.1
$
357.1
$
1,137.9
$
986.9
$
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)
3Q 2024
3Q 2023
Global Lifestyle
Global Housing
Global Lifestyle
Global Housing
($ in millions)
Adjusted EBITDA
$
184.3
$
92.4
$
191.8
$
165.1
Reportable catastrophes
1.4
136.8
0.2
26.2
Adjusted EBITDA, excluding reportable
catastrophes
$
185.7
$
229.2
$
192.0
$
191.3
(UNAUDITED)
9 Months 2024
9 Months 2023
Global Lifestyle
Global Housing
Global Lifestyle
Global Housing
($ in millions)
Adjusted EBITDA
$
581.7
$
445.8
$
587.7
$
388.1
Reportable catastrophes
1.7
195.2
1.1
89.1
Adjusted EBITDA, excluding reportable
catastrophes
$
583.4
$
641.0
$
588.8
$
477.2
(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)
3Q
3Q
9 Months
9 Months
12 Months
($ in millions)
2024
2023
2024
2023
2023
GAAP net income
$
133.8
$
190.1
$
558.9
$
460.0
$
642.5
Adjustments, pre-tax:
Net realized losses on investments and
fair value changes to equity securities
18.3
19.1
46.7
49.7
68.7
Amortization of purchased intangible
assets
17.0
18.2
51.9
55.6
77.9
Non-core operations
2.3
(3.0
)
8.6
39.4
50.4
Restructuring costs
(1.0
)
13.2
0.2
18.3
34.3
Assurant Health runoff operations
0.1
0.3
(0.3
)
(7.2
)
(6.9
)
Other adjustments
(6.9
)
1.3
(23.1
)
1.9
9.0
Benefit for income taxes
(5.9
)
(8.6
)
(17.3
)
(29.7
)
(43.0
)
Adjusted earnings
157.7
230.6
625.6
588.0
832.9
Reportable catastrophes, pre-tax
138.2
26.4
196.9
90.2
111.8
Tax impact of reportable catastrophes
(29.0
)
(5.5
)
(41.3
)
(18.9
)
(23.5
)
Adjusted earnings, excluding reportable
catastrophes
$
266.9
$
251.5
$
781.2
$
659.3
$
921.2
(UNAUDITED)
3Q
3Q
9 Months
9 Months
12 Months
2024
2023
2024
2023
2023
GAAP net income per diluted
share(1)
$
2.55
$
3.54
$
10.60
$
8.55
$
11.95
Adjustments, pre-tax:
Net realized losses on investments and
fair value changes to equity securities
0.35
0.36
0.89
0.92
1.28
Amortization of purchased intangible
assets
0.33
0.34
0.99
1.03
1.45
Non-core operations
0.04
(0.06
)
0.16
0.73
0.94
Restructuring costs
(0.02
)
0.25
—
0.34
0.64
Assurant Health runoff operations
—
0.01
(0.01
)
(0.13
)
(0.13
)
Other adjustments
(0.14
)
0.02
(0.43
)
0.04
0.16
Benefit for income taxes
(0.11
)
(0.17
)
(0.33
)
(0.55
)
(0.80
)
Adjusted earnings, per diluted
share
3.00
4.29
11.87
10.93
15.49
Reportable catastrophes, pre-tax
2.63
0.49
3.74
1.67
2.08
Tax impact of reportable catastrophes
(0.55
)
(0.10
)
(0.78
)
(0.35
)
(0.44
)
Adjusted earnings, excluding reportable
catastrophes, per diluted share
$
5.08
$
4.68
$
14.83
$
12.25
$
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
3Q 2024
Percentage change in Global Lifestyle
and Global Housing net earned premiums, fees and other
income:
Including FX impact
7.2 %
FX impact
(0.8) %
Excluding FX impact
8.0 %
Percentage change in Global Lifestyle
net earned premiums, fees and other income:
Including FX impact
6.8 %
FX impact
(1.0) %
Excluding FX impact
7.8 %
Percentage change in GAAP net income,
including FX impact
(29.6) %
Percentage change in Adjusted EBITDA,
including FX impact
(25.3) %
Percentage change in Adjusted EBITDA,
excluding reportable catastrophes:
Including FX impact
7.8 %
FX impact
(1.4) %
Excluding FX impact
9.2 %
Percentage change in Global Lifestyle
Adjusted EBITDA:
Including FX impact
(3.9) %
FX impact
(2.4) %
Excluding FX impact
(1.5) %
Percentage change in Connected Living
Adjusted EBITDA:
Including FX impact
(4.3) %
FX impact
(3.6) %
Excluding FX impact
(0.7) %
(6)
The company outlook for Adjusted earnings,
excluding reportable catastrophes, per diluted share and, for
Assurant and Global Housing, Adjusted EBITDA, excluding reportable
catastrophes, 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 $135 million, $107 million, $70 million and 18 to 20
percent, respectively. Other GAAP components cannot be reliably
quantified due to the combination of variability and volatility of
such components and may, depending on the size of the components,
have a significant impact on the reconciliation.
Assurant, Inc.
Consolidated Statement of Operations
(unaudited)
Three and Nine Months Ended September
30, 2024 and 2023
3Q
9 Months
2024
2023
2024
2023
($ in millions except number
of shares and per share amounts)
Revenues
Net earned premiums
$
2,417.2
$
2,357.3
$
7,238.3
$
6,965.8
Fees and other income
439.1
310.4
1,200.0
888.8
Net investment income
129.7
125.5
381.1
343.6
Net realized losses on investments and
fair value changes to equity securities
(18.3
)
(19.1
)
(46.7
)
(49.7
)
Total revenues
2,967.7
2,774.1
8,772.7
8,148.5
Benefits, losses and expenses
Policyholder benefits
776.8
644.6
2,096.0
1,922.7
Underwriting, selling, general and
administrative expenses
2,012.7
1,873.7
5,919.2
5,564.5
Interest expense
26.7
27.0
80.2
81.2
Gain on extinguishment of debt
—
—
—
(0.1
)
Total benefits, losses and expenses
2,816.2
2,545.3
8,095.4
7,568.3
Income before provision for income
taxes
151.5
228.8
677.3
580.2
Provision for income taxes
17.7
38.7
118.4
120.2
Net income
$
133.8
$
190.1
$
558.9
$
460.0
Net income per share:
Basic
$
2.56
$
3.55
$
10.66
$
8.58
Diluted
$
2.55
$
3.54
$
10.60
$
8.55
Common stock dividends per
share
$
0.72
$
0.70
$
2.16
$
2.10
Share data:
Basic weighted average shares
outstanding
52,204,057
53,535,982
52,411,457
53,591,495
Diluted weighted average shares
outstanding
52,464,522
53,745,173
52,704,874
53,824,384
Assurant, Inc.
Consolidated Condensed Balance Sheets
(unaudited)
At September 30, 2024 and December 31,
2023
September 30,
December 31,
2024
2023
($ in millions)
Assets
Investments and cash and cash
equivalents
$
10,784.6
$
9,848.3
Reinsurance recoverables
7,631.8
6,649.2
Deferred acquisition costs
10,083.8
9,967.2
Goodwill
2,625.2
2,608.8
Value of business acquired
11.7
83.9
Other assets
4,195.2
4,477.8
Total assets
$
35,332.3
$
33,635.2
Liabilities
Policyholder benefits and claims
payable
$
3,553.0
$
2,476.4
Unearned premiums
20,400.0
20,110.4
Debt
2,082.5
2,080.6
Accounts payable and other liabilities
4,041.5
4,158.3
Total liabilities
30,077.0
28,825.7
Stockholders’ equity
Equity, excluding accumulated other
comprehensive loss
5,882.5
5,574.5
Accumulated other comprehensive loss
(627.2
)
(765.0
)
Total equity
5,255.3
4,809.5
Total liabilities and equity
$
35,332.3
$
33,635.2
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241105804887/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
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