Assurant Reports Second Quarter 2024 Financial Results
Assurant (NYSE: AIZ) reported strong Q2 2024 results, with GAAP net income up 21% to $188.7 million and Adjusted EBITDA, excluding catastrophes, up 10% to $369.1 million. The company increased its 2024 outlook, now expecting high single-digit growth in Adjusted EBITDA and low double-digit growth in Adjusted EPS, both excluding catastrophes. Key highlights include:
- Global Housing segment showed strong performance, with Adjusted EBITDA ex-catastrophes up 23%
- Global Lifestyle segment saw a 4% decrease in Adjusted EBITDA
- Net earned premiums, fees and other income increased 6% to $2.82 billion
- Company returned $80 million to shareholders via share repurchases and dividends
Assurant's strong performance was attributed to its compelling products and services, as well as new client partnerships and innovative solutions.
Assurant (NYSE: AIZ) ha riportato risultati solidi per il secondo trimestre del 2024, con un utile netto GAAP in aumento del 21% a 188,7 milioni di dollari e un EBITDA rettificato, escluse le catastrofi, in aumento del 10% a 369,1 milioni di dollari. L'azienda ha rivisto al rialzo le sue previsioni per il 2024, ora aspettandosi una crescita a singolo cifra alta nell'EBITDA rettificato e una crescita a doppia cifra bassa nell'EPS rettificato, entrambe escluse le catastrofi. I principali punti salienti includono:
- Il segmento Global Housing ha mostrato un forte rendimento, con un EBITDA rettificato ex-catastrofi in aumento del 23%
- Il segmento Global Lifestyle ha registrato una diminuzione del 4% nell'EBITDA rettificato
- I premi netti guadagnati, le commissioni e altri ricavi sono aumentati del 6% a 2,82 miliardi di dollari
- L'azienda ha restituito 80 milioni di dollari agli azionisti tramite riacquisti di azioni e dividendi
Le solide prestazioni di Assurant sono state attribuite ai suoi prodotti e servizi accattivanti, oltre a nuove collaborazioni con clienti e soluzioni innovative.
Assurant (NYSE: AIZ) reportó resultados sólidos para el segundo trimestre de 2024, con un ingreso neto GAAP que aumentó un 21% a 188,7 millones de dólares y un EBITDA ajustado, excluyendo catástrofes, que creció un 10% hasta 369,1 millones de dólares. La compañía ha elevado sus perspectivas para 2024, esperando ahora un crecimiento de un solo dígito alto en EBITDA ajustado y un crecimiento de un solo dígito bajo en EPS ajustado, ambas cifras excluyendo catástrofes. Los puntos destacados incluyen:
- El segmento Global Housing mostró un rendimiento fuerte, con un EBITDA ajustado ex-catástrofes que aumentó un 23%
- El segmento Global Lifestyle sufrió una disminución del 4% en EBITDA ajustado
- Las primas netas ganadas, comisiones y otros ingresos aumentaron un 6% a 2,82 mil millones de dólares
- La empresa devolvió 80 millones de dólares a los accionistas a través de recompra de acciones y dividendos
El sólido desempeño de Assurant se atribuyó a sus productos y servicios atractivos, así como a nuevas asociaciones con clientes y soluciones innovadoras.
Assurant (NYSE: AIZ)는 2024년 2분기 실적이 강력하다고 보고했으며, GAAP 순이익이 21% 증가하여 1억 8,870만 달러에 달했다고 하였습니다. 재난을 제외한 조정 EBITDA는 10% 증가하여 3억 6,910만 달러에 이른다는 결과를 발표했습니다. 회사는 2024년에 대한 전망을 상향 조정했으며, 이제 조정된 EBITDA에서 높은 한 자릿수 성장과 조정된 EPS에서 낮은 두 자릿수 성장을 예상하고 있습니다. 주요 내용은 다음과 같습니다:
- Global Housing 부문은 조정된 EBITDA가 재난 제외 시 23% 증가하여 강력한 성과를 보였습니다.
- Global Lifestyle 부문은 조정된 EBITDA가 4% 감소했습니다.
- 순수보험료, 수수료 및 기타 수익은 6% 증가하여 28억 2천만 달러에 달했습니다.
- 회사는 주식 매입과 배당금을 통해 주주에게 8천만 달러를 환원했습니다.
Assurant의 강력한 성과는 매력적인 제품 및 서비스와 고객과의 새로운 파트너십, 혁신적인 솔루션 덕분입니다.
Assurant (NYSE: AIZ) a rapporté de solides résultats pour le deuxième trimestre 2024, avec un bénéfice net GAAP en hausse de 21 % à 188,7 millions de dollars et un EBITDA ajusté, hors catastrophes, en hausse de 10 % à 369,1 millions de dollars. L'entreprise a relevé ses prévisions pour 2024, s'attendant désormais à une croissance à un seul chiffre haut pour l'EBITDA ajusté et une croissance à deux chiffres bas pour l'EPS ajusté, toutes deux hors catastrophes. Les principaux points saillants comprennent :
- Le secteur Global Housing a affiché une performance solide, avec un EBITDA ajusté hors catastrophes en hausse de 23 %
- Le secteur Global Lifestyle a enregistré une baisse de 4 % de l'EBITDA ajusté
- Les primes nettes gagnées, les frais et autres revenus ont augmenté de 6 % pour atteindre 2,82 milliards de dollars
- L'entreprise a restitué 80 millions de dollars aux actionnaires par le biais de rachats d'actions et de dividendes
Les solides performances d'Assurant ont été attribuées à ses produits et services attrayants, ainsi qu'à de nouveaux partenariats avec des clients et des solutions innovantes.
Assurant (NYSE: AIZ) berichtete von starken Ergebnissen im 2. Quartal 2024, mit einem GAAP-Nettoeinkommen, das um 21% auf 188,7 Millionen Dollar gestiegen ist und einem angepasst EBITDA, ohne Katastrophen, das um 10% auf 369,1 Millionen Dollar gestiegen ist. Das Unternehmen hat seine Prognose für 2024 angehoben und erwartet nun ein starkes einstelliges Wachstum beim angepassten EBITDA sowie ein niedriges zweistelliges Wachstum beim angepassten EPS, beide ohne Berücksichtigung von Katastrophen. Zu den wichtigsten Highlights gehören:
- Der Global Housing-Segment zeigte eine starke Leistung, mit einem angepassten EBITDA ohne Katastrophen, das um 23% gestiegen ist
- Der Global Lifestyle-Segment verzeichnete einen Rückgang im angepassten EBITDA um 4%
- Die netto verdienten Prämien, Gebühren und sonstige Einnahmen stiegen um 6% auf 2,82 Milliarden Dollar
- Das Unternehmen gab 80 Millionen Dollar an die Aktionäre in Form von Aktienrückkäufen und Dividenden zurück
Die starke Leistung von Assurant wurde den attraktiven Produkten und Dienstleistungen sowie neuen Kundenpartnerschaften und innovativen Lösungen zugeschrieben.
- GAAP net income increased 21% to $188.7 million
- Adjusted EBITDA, excluding catastrophes, grew 10% to $369.1 million
- Net earned premiums, fees and other income increased 6% to $2.82 billion
- Global Housing Adjusted EBITDA, excluding catastrophes, increased 23%
- Company increased 2024 outlook, expecting high single-digit growth in Adjusted EBITDA and low double-digit growth in Adjusted EPS
- Returned $80 million to shareholders via share repurchases and dividends
- Holding company liquidity was $735 million, $510 million above the targeted minimum
- Global Lifestyle Adjusted EBITDA decreased 4%
- Global Automotive results faced pressure from ongoing elevated claims costs and inflation
- Higher pre-tax reportable catastrophes of $32.3 million compared to the prior year period
Insights
Assurant's Q2 2024 results demonstrate strong financial performance and improved outlook. Key highlights include:
- GAAP net income increased
21% to$188.7 million - Adjusted EBITDA ex. catastrophes up
10% to$369.1 million - Adjusted EPS ex. catastrophes grew
17% to$4.77 - Net earned premiums, fees and other income up
6% to$2.82 billion
The company raised its 2024 outlook, now expecting high single-digit growth in Adjusted EBITDA and low double-digit growth in Adjusted EPS, both excluding catastrophes. This positive revision, coupled with strong capital return plans, signals management's confidence in Assurant's business model and growth prospects.
Assurant's Q2 results reveal divergent performance across its segments. Global Housing showed impressive growth, with Adjusted EBITDA ex. catastrophes up
The company's ability to raise its full-year outlook despite these headwinds in Global Lifestyle underscores the strength and diversification of Assurant's portfolio. The increased catastrophe losses (
Assurant's Q2 results and improved outlook present a positive signal for investors. The company's ability to grow earnings and raise guidance in a challenging macroeconomic environment demonstrates resilience and effective execution. The
Notably, Assurant's strong capital position, with
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
“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
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 |
|
|
|
425.1 |
|
269.9 |
|
|
Adjusted EBITDA1 |
323.4 |
|
323.1 |
|
—% |
|
694.1 |
|
566.0 |
|
|
Adjusted EBITDA, ex. reportable catastrophes2 |
369.1 |
|
336.5 |
|
|
|
752.8 |
|
629.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per diluted share |
3.58 |
|
2.90 |
|
|
|
8.05 |
|
5.01 |
|
|
Adjusted earnings per diluted share3 |
4.08 |
|
3.89 |
|
|
|
8.86 |
|
6.64 |
|
|
Adjusted earnings, ex. reportable catastrophes, per diluted share4 |
4.77 |
|
4.09 |
|
|
|
9.74 |
|
7.57 |
|
|
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
, compared to the prior year period, while net income per diluted share increased 23 percent to$188.7 million versus the prior year period.$3.58 -
Adjusted EBITDA, excluding reportable catastrophes2, increased 10 percent to
, or 11 percent on a constant currency basis5.$369.1 million -
Adjusted earnings, excluding reportable catastrophes, per diluted share4, increased 17 percent to
.$4.77 -
Holding company liquidity was
; returned$735 million to shareholders via share repurchases and common stock dividends.$80 million
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 |
|
|
|
425.1 |
|
269.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
Global Lifestyle |
189.7 |
|
197.0 |
|
(4)% |
|
397.4 |
|
395.9 |
|
—% |
Global Housing |
160.9 |
|
154.6 |
|
|
|
353.4 |
|
223.0 |
|
|
Corporate and Other |
(27.2) |
|
(28.5) |
|
|
|
(56.7) |
|
(52.9) |
|
(7)% |
Adjusted EBITDA1 |
323.4 |
|
323.1 |
|
—% |
|
694.1 |
|
566.0 |
|
|
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 |
|
|
|
411.8 |
|
285.9 |
|
|
Corporate and Other |
(27.2) |
|
(28.5) |
|
|
|
(56.7) |
|
(52.9) |
|
(7)% |
Adjusted EBITDA, ex. reportable catastrophes2 |
369.1 |
|
336.5 |
|
|
|
752.8 |
|
629.8 |
|
|
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
, compared to second quarter 2023 of$188.7 million , primarily due to a lower after-tax loss from non-core operations and a lower effective tax rate.$156.3 million
-
GAAP net income per diluted share increased to
compared to second quarter 2023 of$3.58 . The increase was primarily driven by the factors noted above.$2.90
-
Adjusted EBITDA1 was relatively flat at
compared to the prior year period of$323.4 million . Results included$323.1 million of higher pre-tax reportable catastrophes. Excluding reportable catastrophes, Adjusted EBITDA2 increased 10 percent, or 11 percent on a constant currency basis5, to$32.3 million , primarily from higher top-line growth in Homeowners within Global Housing.$369.1 million
-
Adjusted earnings, excluding reportable catastrophes, per diluted share4, increased 17 percent to
compared to the prior year period of$4.77 , primarily from higher Global Housing earnings.$4.09
-
Net earned premiums, fees and other income from the Global Lifestyle and Global Housing segments totaled
compared to$2.82 billion in second quarter 2023, up 6 percent, or 7 percent on a constant currency basis5, driven by growth across both segments.$2.65 billion
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 |
|
|
|
4,371.3 |
|
4,149.2 |
|
|
-
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 |
|
|
|
353.4 |
|
223.0 |
|
|
Reportable catastrophes |
45.5 |
|
13.4 |
|
|
|
58.4 |
|
62.9 |
|
|
Adjusted EBITDA, ex. reportable catastrophes2 |
206.4 |
|
168.0 |
|
|
|
411.8 |
|
285.9 |
|
|
Net earned premiums, fees and other income |
633.6 |
|
536.6 |
|
|
|
1,205.8 |
|
1,041.9 |
|
|
-
Adjusted EBITDA increased 4 percent compared to second quarter 2023. Results included
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$32.1 million of unfavorable year-over-year net impact to prior period reserve development. Second quarter 2024 had$10.7 million of favorable development compared to$17 million in second quarter 2023.$28 million
- 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) |
|
|
|
(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
as of June 30, 2024, or$735 million above the company’s targeted minimum level of$510 million .$225 million
Dividends paid by the operating segments to the holding company in second quarter 2024 totaled
-
Share repurchases and common stock dividends totaled
in second quarter 2024. During second quarter 2024, Assurant repurchased approximately 234 thousand shares of common stock for$80 million and paid$40 million in common stock dividends. From July 1 through August 2, 2024, the company repurchased approximately 117 thousand shares for$40 million , with$20 million remaining under the current repurchase authorization.$575 million
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 |
|
|
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
of favorable prior year reserve development.$47 million - 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
-
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
-
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
, interest expense of approximately$130 million and amortization of purchased intangible assets of approximately$107 million .$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
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
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 |
(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 |
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
Source: Assurant, Inc.
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