Performance Overview Assurant reported a strong start to 2024, with significant increases in GAAP net income and Adjusted EBITDA, driven by exceptional Global Housing and Global Lifestyle growth - Key Financial Metrics | Metric | Q1'24 ($M) | Q1'23 ($M) | Change | | :--- | :--- | :--- | :--- | | GAAP net income | $236.4 | $113.6 | +108% | | Adjusted EBITDA | $370.7 | $242.9 | +53% | | Adjusted EBITDA, ex. catastrophes | $383.7 | $293.3 | +31% | | GAAP net income per diluted share | $4.47 | $2.12 | +111% | | Adjusted earnings per diluted share | $4.78 | $2.75 | +74% | - CEO Keith Demmings highlighted a strong start to the year, attributing the success to exceptional results in Global Housing and ongoing momentum in the U.S. Connected Living business within Global Lifestyle[3](index=3&type=chunk) - The company is increasingly confident in its ability to deliver on its 2024 financial objectives, focusing on investing for growth, accelerating innovation, and effectively deploying capital[4](index=4&type=chunk) [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) Consolidated GAAP net income more than doubled and Adjusted EBITDA grew significantly in Q1 2024, driven by Global Housing and increased net earned premiums - Consolidated Financial Performance | Metric | Q1'24 ($M) | Q1'23 ($M) | Change | | :--- | :--- | :--- | :--- | | GAAP net income | $236.4 | $113.6 | +108% | | Adjusted EBITDA | $370.7 | $242.9 | +53% | | Adjusted EBITDA, ex. catastrophes | $383.7 | $293.3 | +31% | - The increase in Adjusted EBITDA was driven primarily by Global Housing, which saw a **181% increase**, while Global Lifestyle grew by **4%**[9](index=9&type=chunk) - Net earned premiums, fees and other income from Global Lifestyle and Global Housing segments totaled **$2.76 billion**, an increase of **8%** (**9%** on a constant currency basis) from Q1 2023[11](index=11&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) Global Housing significantly increased Adjusted EBITDA due to lower catastrophe losses, while Global Lifestyle grew modestly and Corporate and Other reported a larger loss [Global Lifestyle](index=3&type=section&id=Global%20Lifestyle) Global Lifestyle's Adjusted EBITDA increased **4%** due to Connected Living growth and a one-time client benefit, partially offset by higher Global Automotive claims costs - Global Lifestyle Segment Performance | Metric | Q1'24 ($M) | Q1'23 ($M) | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $207.7 | $198.9 | +4% | | Net earned premiums, fees and other income | $2,187.8 | $2,040.3 | +7% | - Growth in Connected Living was driven by stronger mobile device protection results, higher investment income, and a one-time **$6.9 million** client contract benefit[11](index=11&type=chunk) - Global Automotive results decreased mainly due to ongoing elevated claims costs from inflation and normalization of select ancillary products[11](index=11&type=chunk) [Global Housing](index=3&type=section&id=Global%20Housing) Global Housing's Adjusted EBITDA soared **181%** due to significantly lower catastrophe losses and improved non-catastrophe loss experience - Global Housing Segment Performance | Metric | Q1'24 ($M) | Q1'23 ($M) | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $192.5 | $68.4 | +181% | | Reportable catastrophes | $12.9 | $49.5 | -74% | | Adjusted EBITDA, ex. catastrophes | $205.4 | $117.9 | +74% | | Net earned premiums, fees and other income | $572.2 | $505.3 | +13% | - Excluding catastrophes, Adjusted EBITDA increased **74%**, with over half of the increase driven by lower non-catastrophe loss experience, including a **$15.7 million** favorable impact from prior period reserve development[13](index=13&type=chunk) - Net earned premiums, fees and other income increased **13%**, mainly driven by Homeowners top-line growth from higher average premiums and growth in policies in-force[13](index=13&type=chunk) [Corporate and Other](index=4&type=section&id=Corporate%20and%20Other) The Corporate and Other segment reported an increased Adjusted EBITDA loss of **$29.5 million**, primarily due to higher expenses supporting enterprise growth initiatives - Corporate and Other Segment Performance | Metric | Q1'24 ($M) | Q1'23 ($M) | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA Loss | ($29.5) | ($24.4) | +21% | - The increased loss was primarily driven by higher expenses to support enterprise growth initiatives[14](index=14&type=chunk) [Capital Management and Liquidity](index=4&type=section&id=Capital%20Management%20and%20Liquidity) Assurant maintained strong liquidity with **$622 million** at the holding company, **$397 million** above target, and returned **$77 million** to shareholders in Q1 2024 - Holding company liquidity totaled **$622 million**, which is **$397 million** above the company's targeted minimum level of **$225 million**[15](index=15&type=chunk) - Returned **$77 million** to shareholders in Q1 2024, consisting of **$40 million** in share repurchases (approx. **225 thousand** shares) and **$37 million** in common stock dividends[15](index=15&type=chunk) - As of May 3, 2024, **$625 million** remained under the current share repurchase authorizations[15](index=15&type=chunk) [Full-Year 2024 Outlook](index=2&type=section&id=Full-Year%202024%20Outlook) Assurant updated its full-year 2024 outlook, expecting mid-single-digit growth in Adjusted EBITDA (ex-catastrophes) towards the higher end, with similar growth for Adjusted EPS - The company expects Adjusted EBITDA, excluding reportable catastrophes, to increase by **mid-single-digits**, with growth now trending towards the higher end of the outlook[9](index=9&type=chunk)[17](index=17&type=chunk) - Adjusted earnings, excluding reportable catastrophes, per diluted share growth rate is expected to approximate the growth rate in Adjusted EBITDA, excluding reportable catastrophes[9](index=9&type=chunk)[17](index=17&type=chunk) - Global Housing's growth is expected to be driven by improving non-catastrophe loss experience and top-line growth, while Global Lifestyle's growth will be led by Connected Living programs[17](index=17&type=chunk) - The Corporate and Other Adjusted EBITDA loss is forecasted to be approximately **$110 million** for the full year[17](index=17&type=chunk) [Financial Statements](index=13&type=section&id=Financial%20Statements) This section presents unaudited consolidated financial statements for Q1 2024 and Q1 2023, detailing the company's financial performance and position [Consolidated Statement of Operations](index=13&type=section&id=Consolidated%20Statement%20of%20Operations) For Q1 2024, total revenues increased to **$2.88 billion**, and net income rose to **$236.4 million** or **$4.47** per diluted share - Consolidated Statement of Operations (Unaudited) | Metric | Q1 2024 ($M) | Q1 2023 ($M) | | :--- | :--- | :--- | | Total revenues | $2,880.1 | $2,642.8 | | Net income | $236.4 | $113.6 | | Diluted net income per share | $4.47 | $2.12 | [Consolidated Condensed Balance Sheets](index=14&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) As of March 31, 2024, Assurant's total assets were **$33.23 billion**, liabilities **$28.31 billion**, and equity **$4.92 billion**, with equity increasing from year-end 2023 - Consolidated Condensed Balance Sheets (Unaudited) | Metric | March 31, 2024 ($M) | December 31, 2023 ($M) | | :--- | :--- | :--- | | Total assets | $33,225.4 | $33,635.2 | | Total liabilities | $28,305.4 | $28,825.7 | | Total equity | $4,920.0 | $4,809.5 | [Appendix](index=6&type=section&id=Appendix) This appendix provides supplementary information, including a Safe Harbor Statement and detailed reconciliation of Non-GAAP financial measures [Safe Harbor Statement](index=6&type=section&id=Safe%20Harbor%20Statement) This statement cautions that forward-looking statements are subject to various risks and uncertainties, including client loss, competitive pressures, and catastrophe losses - The report contains forward-looking statements which are based on current plans and expectations and are not guarantees of future performance[21](index=21&type=chunk)[22](index=22&type=chunk) - Key risks that could cause actual results to differ materially include loss of significant clients, competitive pressures, catastrophe losses, economic and political conditions, and regulatory changes[23](index=23&type=chunk)[26](index=26&type=chunk) [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) Assurant uses non-GAAP measures like Adjusted EBITDA and Adjusted EPS to analyze operating performance by excluding volatile or non-recurring items, with detailed reconciliations provided - The company uses non-GAAP measures like Adjusted EBITDA and Adjusted Earnings per Diluted Share to provide investors with a view of ongoing operating performance by excluding items that are highly variable or do not represent core operations[25](index=25&type=chunk)[27](index=27&type=chunk)[30](index=30&type=chunk) - Reconciliation of GAAP Net Income to Adjusted EBITDA (Q1 2024, $ in millions) | Line Item | Amount ($M) | | :--- | :--- | | GAAP net income | $236.4 | | *Less/Add Adjustments* | | | Interest expense | $26.8 | | Provision for income taxes | $56.5 | | Depreciation expense | $30.6 | | Amortization of purchased intangible assets | $17.6 | | Other pre-tax adjustments | $1.0 | | **Adjusted EBITDA** | **$370.7** | | Reportable catastrophes | $13.0 | | **Adjusted EBITDA, ex. catastrophes** | **$383.7** | - Reconciliation of GAAP EPS to Adjusted EPS (Q1 2024) | Line Item | Amount | | :--- | :--- | | GAAP net income per diluted share | $4.47 | | *Adjustments (per share)* | | | **Adjusted earnings, per diluted share** | **$4.78** | | *Catastrophe Adjustments (per share)* | | | **Adjusted earnings, ex. catastrophes, per diluted share** | **$4.97** |

Core Insights - Assurant (AIZ) is expected to report quarterly earnings of $3.87 per share, reflecting a year-over-year increase of 40.7% [1] - Anticipated revenues are projected to be $2.82 billion, showing a 6.1% increase compared to the same quarter last year [1] - The consensus EPS estimate has been revised down by 2.3% in the past 30 days, indicating a reassessment by analysts [1] Revenue and Income Estimates - 'Net investment income' is projected to reach $134.57 million, representing a 27.9% increase year over year [2] - 'Fees and other income' are expected to be $333.63 million, indicating an 18% year-over-year change [2] - 'Net earned premiums, fees and other income' are estimated at $2.35 billion, reflecting a decrease of 7.9% year over year [2] Segment Performance - 'Total revenues- Global Housing' are expected to be $577.54 million, showing a 9.7% increase year over year [3] - 'Total revenues- Global Lifestyle' are forecasted to reach $2.22 billion, indicating a 4.9% year-over-year increase [3] - 'Total revenues- Corporate & Other' are projected at $6.65 million, reflecting a significant increase of 44.6% year over year [3] Specific Metrics for Global Housing and Lifestyle - 'Net earned premiums- Global Housing' is estimated at $515.77 million, indicating an 8.6% year-over-year increase [3] - 'Fees and other income- Global Housing' are expected to be $30.97 million, reflecting a 2.2% increase year over year [3] - 'Net investment income- Global Housing' is projected at $32.30 million, showing a substantial increase of 52.3% from the prior year [3] Global Lifestyle Metrics - 'Fees and other income- Global Lifestyle' are expected to reach $316.01 million, indicating a year-over-year change of 25.3% [4] - 'Global Lifestyle- Net earned premiums' are projected at $1.81 billion, reflecting an 11.5% decrease year over year [4] - 'Net investment income- Corporate & Other' is estimated at $7.15 million, indicating a year-over-year increase of 58.9% [4] Stock Performance - Over the past month, Assurant shares have recorded a return of -5.6%, compared to the Zacks S&P 500 composite's -4.2% change [4] - Assurant holds a Zacks Rank 3 (Hold), suggesting that its performance is likely to align with the overall market in the upcoming period [4]

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Assurant Inc. (AIZ) , a global leader in lifestyle and housing solutions, has expanded its footprint in the UK market through the acquisition of iSmash, the country's top independent tech repair brand. This strategic move solidifies Assurant's position in the drop-in mobile equipment service and protection sectors.Enhanced Scale and ExpertiseFounded in 2013, iSmash has quickly risen to prominence with 38 retail locations and 152 employees across the UK. Its specialization in express drop-in repair services ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium includes access to the Zacks Style Sc ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

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Assurant, Inc.’s (AIZ) shares have rallied 57.6% in a year compared with the industry's growth of 27.3%. The Finance sector and the Zacks S&P 500 index have gained 26.1% and 27.7% in the said time frame, respectively.With a market capitalization of $9.73 billion, the average volume of shares traded in the last three months was 0.3 million.Image Source: Zacks Investment ResearchThe rally was largely driven by the well-performing Global Lifestyle business, growth of fee-based capital-light businesses, solid c ...

Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Is Assurant (AIZ) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.Assurant is a member of the Finance sector. This group includes 855 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank includes 16 different groups and is listed in order from b ...

A month has gone by since the last earnings report for Assurant (AIZ) . Shares have added about 2.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Assurant due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Assurant Q4 Earnings Top on Solid Global Housing ResultsAs ...