Core Insights - Assurant, Inc. (AIZ) reported a significant increase in net operating income for Q3 2025, reaching $5.73 per share, which exceeded the Zacks Consensus Estimate by 35.4% and marked a 91% year-over-year increase [1][10] - The company's strong performance was driven by the Global Housing and Global Lifestyle segments, which saw higher revenues and improved net investment income, although this was partially offset by increased expenses and weakness in the Corporate & Other segment [1][10] Revenue Performance - Total revenues rose by 8.6% year over year to nearly $3.2 billion, surpassing the Zacks Consensus Estimate by 2.6% [2] - Net earned premiums, fees, and other income increased by 8.9% year over year to $3.1 billion, exceeding the estimate of $3 billion [2] - Net investment income grew by 2.9% year over year to $133.5 million, also beating the estimate of $125.1 million [2] Expense Analysis - Total benefits, losses, and expenses increased by 3% to $2.9 billion, primarily due to higher underwriting, selling, general and administrative expenses, and interest expense [3] - Adjusted EBITDA, excluding reportable catastrophes, increased by 13% to $433.5 million, slightly below the estimate of $439.4 million [3] Segment Performance - Global Housing revenues increased by 16.2% year over year to $738.9 million, exceeding the estimate of $703.1 million [4] - Net earned premiums, fees, and other income in Global Housing rose by 16% year over year to $702.9 million, driven by growth in policies in-force and higher average premiums [5] - Adjusted EBITDA for Global Housing, excluding catastrophes, increased by 13% year over year to $259.2 million, although it was lower than the estimate of $273.1 million [6] - Global Lifestyle revenues increased by 6.8% year over year to $2.5 billion, matching the Zacks Consensus Estimate [7] - Adjusted EBITDA for Global Lifestyle rose by 12% year over year to $206.8 million, exceeding the estimate of $195.4 million [8] - The Corporate & Other segment reported an adjusted EBITDA loss of $31.6 million, wider than the previous year's loss of $29.8 million [9] Financial Position - As of September 30, 2025, liquidity stood at $613 million, significantly above the targeted minimum level of $225 million [11] - Total assets increased by 2.2% to $35.7 billion, while total shareholders' equity rose by 12.7% to $5.7 billion [11] - The debt-to-total capital ratio improved by 130 basis points to 27.7% [11] Shareholder Returns - In Q3 2025, Assurant repurchased shares worth $81 million and paid $41 million in dividends [12] - From October 1 to October 31, 2025, an additional $27 million was spent on share repurchases, with $141 million remaining under the current repurchase authorization [12] Future Guidance - Assurant raised its 2025 guidance, expecting adjusted EBITDA growth, excluding reportable catastrophes, to approach 10% [13] - The company anticipates strong growth in Global Housing adjusted EBITDA and expects a loss of $120 million in Corporate and Other adjusted EBITDA [13] - Adjusted earnings per diluted share are projected to deliver low double-digit growth [14]

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Financial Data and Key Metrics Changes - In Q3 2025, the company achieved 13% adjusted EBITDA growth and 15% adjusted EPS growth, both excluding reportable catastrophes [4][5] - The full-year adjusted EPS growth is now expected to be in the low double digits, with adjusted EBITDA growth approaching 10%, a significant increase from initial expectations [5][24] Business Line Data and Key Metrics Changes - Global Lifestyle earnings increased 4% year-to-date, with double-digit growth in Q3 [6] - In Connected Living, earnings increased 11%, driven by strength in financial services and mobile subscriber growth of 2.1 million net additions year-over-year [19][20] - Global Auto adjusted EBITDA increased 15% year-over-year, with normalized growth of 6% when excluding non-run rate benefits [20] - Global Housing adjusted EBITDA was $256 million, with a 13% increase when excluding catastrophes, driven by favorable loss experience and policy growth [21][22] Market Data and Key Metrics Changes - The company reported strong performance in the lender-placed market, with policy counts up 8% year-over-year [71] - The average return on equity (ROE) from 2019 to 2024 outperformed the S&P 1500 P&C Index median with less than half the volatility [15] Company Strategy and Development Direction - The company is focused on expanding offerings and increasing attachment rates with existing partners while prioritizing investments in core markets [16] - Strategic investments in technology and operational efficiencies are expected to drive improved margins and customer experiences [14] - The company plans to launch a new program in an adjacent business early next year, which is anticipated to create long-term growth opportunities [83] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue creating value for stakeholders, driven by strong momentum across Global Lifestyle and Global Housing [17][27] - The company remains well-positioned for future growth, with expectations of continued growth across all business lines despite potential economic downturns [16][35] Other Important Information - The company returned $122 million to shareholders in Q3, including $81 million in share repurchases and $41 million in dividends [22] - The company completed the issuance of $300 million in senior notes and redeemed $175 million of senior notes due in 2026, reflecting strong demand for its investment-grade bonds [22][23] Q&A Session Summary Question: Can you expand on the strong pipeline in housing? - Management noted strong momentum across housing, with significant investments in technology and operational capabilities leading to growth opportunities [30][31] Question: Is the improved loss performance in Global Auto sustainable? - Management expressed satisfaction with the stable loss performance and improvements in vehicle service contracts, indicating a positive outlook [32][33] Question: How might a softening housing market affect top-line prospects? - Management acknowledged potential impacts but noted that the business is countercyclical, which could lead to increased placement rates during economic downturns [34][35] Question: Can you quantify the impact of new partnerships in Connected Living? - Management indicated that the reverse logistics and Geek Squad deals are expected to contribute positively starting in 2026, with ongoing investments [51][52] Question: What are the expectations for capital deployment in 2026? - Management highlighted a strong capital position and a balanced approach to investments, including M&A opportunities and share buybacks [55][56] Question: What is the expected contribution of the new program in an adjacent business? - Management signaled that the new program is expected to create long-term growth vectors and will be discussed in more detail in February [83][95]

Financial Data and Key Metrics Changes - In Q3 2025, Assurant achieved 13% Adjusted EBITDA growth and 15% adjusted EPS growth, both excluding reportable catastrophes [4][5] - The company expects full-year adjusted EPS growth in low double digits and Adjusted EBITDA growth approaching 10%, a significant increase from initial expectations [5][24] Business Line Data and Key Metrics Changes - Global Lifestyle earnings increased 4% year-to-date, with double-digit growth in Q3 [6] - Adjusted EBITDA for Global Lifestyle rose 12% year-over-year, driven by Connected Living and Global Automotive [19] - Global Housing's Q3 Adjusted EBITDA was $256 million, with a 13% increase excluding catastrophes [21][22] Market Data and Key Metrics Changes - Connected Living saw 2.1 million net additions in mobile subscribers year-over-year, supported by partnerships with US clients [20] - Global Auto's Adjusted EBITDA increased 15%, with a normalized growth of 6% when excluding non-run rate benefits [20] Company Strategy and Development Direction - Assurant is focused on expanding its B2B2C business model and enhancing operational excellence to drive client outcomes and shareholder returns [4][5] - The company plans to launch new products and services across lifestyle and housing, with a focus on innovation and technology integration [16][27] - Strategic investments in technology and operational efficiencies are expected to drive improved margins and customer experiences [14][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to create value for stakeholders and achieve profitable growth for the ninth consecutive year [27][105] - The company is well-positioned for future growth, with a focus on increasing attachment rates with existing partners and winning new clients globally [16][27] Other Important Information - Assurant returned $122 million to shareholders in Q3, including $81 million in share repurchases and $41 million in dividends [22] - The company completed a successful issuance of $300 million in senior notes, demonstrating strong demand for its investment-grade bonds [22][23] Q&A Session Summary Question: Can you expand on the strong pipeline in housing? - Management noted strong momentum in housing, driven by technology investments and a market-leading lender-placed solution, with further opportunities for growth [30][31] Question: Is the loss performance in Global Auto sustainable? - Management expressed satisfaction with the 15% year-over-year EBITDA growth in Global Auto, indicating stability in loss performance due to prior rate increases and product enhancements [32][33] Question: How do you view the impact of a potential housing market downturn? - Management acknowledged benefits from the current hard market but indicated that a downturn could lead to increased placement rates, suggesting a countercyclical nature [34][35] Question: What is the expected impact of new partnerships in Connected Living? - Management highlighted that new partnerships, including reverse logistics and Geek Squad deals, are expected to contribute positively to EBITDA starting in 2026 [51][52] Question: What are the expectations for capital deployment in 2026? - Management indicated a strong capital position and a balanced approach to investments, with expectations for higher capital deployment in 2026, including share buybacks and M&A opportunities [55][56][61]

Financial Data and Key Metrics Changes - In Q3 2025, the company achieved 13% adjusted EBITDA growth and 15% adjusted EPS growth, both excluding reportable catastrophes [4][5] - The full-year adjusted EPS growth is now expected to be in the low double digits, with adjusted EBITDA growth approaching 10%, a significant increase from initial expectations [5][25] - The liquidity position at the end of the quarter was $613 million, allowing for continued investment and shareholder returns [23] Business Line Data and Key Metrics Changes - Global Lifestyle adjusted EBITDA increased 12% year-over-year, driven by double-digit growth in Connected Living and Global Automotive [19] - In Connected Living, earnings increased 11%, supported by a new card benefits program and subscriber growth in mobile with 2.1 million net additions year-over-year [19][20] - Global Housing's adjusted EBITDA was $256 million, with a 13% increase excluding catastrophes, benefiting from favorable non-catastrophe loss experience and strong lender-placed results [22][12] Market Data and Key Metrics Changes - The company continues to see strong performance in the housing market, with an 8% year-over-year increase in policy counts, driven by favorable market conditions [66] - The voluntary market has hardened, contributing to policy growth and improved placement rates [66] - The company has maintained a strong market position in lender-placed insurance, holding over 60% market share [63] Company Strategy and Development Direction - The company is focused on expanding offerings and increasing attachment rates with existing partners while prioritizing investments in core markets [16] - Strategic investments in technology and operational efficiencies are expected to drive improved margins and customer experiences [12][14] - The company plans to launch a new program in an adjacent business in early 2026, which is anticipated to create long-term growth opportunities [79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue creating value for stakeholders, driven by strong momentum across Global Lifestyle and Global Housing [17][28] - The company is well-positioned for future growth, with expectations of continued expansion in 2025 across its global housing, Connected Living, and global automotive businesses [15][16] - Management acknowledged the potential impact of a softening housing market but noted that the company could benefit from countercyclical trends [36] Other Important Information - The company returned $122 million to shareholders in Q3, including $81 million in share repurchases and $41 million in dividends [23] - The company completed the issuance of $300 million in senior notes, demonstrating strong demand for its investment-grade bonds [23][24] Q&A Session Summary Question: Can you expand on the strong pipeline in housing? - Management noted strong momentum across housing, with significant investments in technology and operational capabilities leading to growth opportunities [32] Question: Is the improved loss performance in Global Auto sustainable? - Management expressed satisfaction with the stable loss performance and improvements in vehicle service contracts, indicating a positive outlook [34] Question: How might a softening housing market affect top-line prospects? - Management acknowledged the benefits from a challenging voluntary market but indicated that a downturn could lead to increased placement rates [36] Question: What impact are the new partnerships in Connected Living expected to have? - Management indicated that the reverse logistics and Geek Squad deals will begin contributing in 2026, with ongoing investments expected to positively impact EBITDA [47] Question: How does the company plan to approach capital deployment in 2026? - Management highlighted a balanced approach to capital deployment, with expectations for continued investments in organic growth and M&A opportunities [50][52] Question: What are the notable drivers supporting recent housing results? - Management ranked policy growth as the primary driver, followed by placement rates and AIV increases, indicating a strong outlook for continued growth [65]

Financial Performance - Assurant's YTD 2025 adjusted EBITDA, excluding catastrophes, increased by 13% compared to the prior year period[11] - Assurant's YTD 2025 adjusted EPS, excluding catastrophes, increased by 15% compared to the prior year period[11] - Assurant generated $487 million in cash YTD 2025[11] - Assurant returned $331 million to shareholders YTD 2025, including share repurchases and common stock dividends[11] - Assurant Q3 2025 adjusted EBITDA, excluding catastrophes, increased by 13% to $434 million, compared to $385 million in Q3 2024[41] - Assurant Q3 2025 adjusted EPS, excluding catastrophes, increased by 13% to $576 per share, compared to $508 per share in Q3 2024[41] Segment Performance - Global Lifestyle adjusted EBITDA increased by 6% on a constant currency basis YTD 2025[20] - Global Housing adjusted EBITDA, excluding catastrophes, increased by 21% YTD 2025, reaching $773 million compared to $641 million in the prior year period[22, 25] - Global Housing combined ratio for YTD 2025 was 78%, or 83% excluding prior year development[27] Outlook and Capital Allocation - Assurant is increasing its 2025 enterprise outlook to low double-digit growth in adjusted EPS and approaching 10% growth in adjusted EBITDA, both excluding catastrophes[13] - Assurant repurchased $81 million in shares in Q3 2025, with an additional $27 million repurchased between October 1 and October 31[42]

Core Insights - Assurant reported revenue of $3.25 billion for the quarter ended September 2025, reflecting an 8.7% increase year-over-year and a surprise of +2.67% over the Zacks Consensus Estimate of $3.16 billion [1] - Earnings per share (EPS) reached $5.73, significantly higher than the $3.00 reported in the same quarter last year, resulting in an EPS surprise of +35.46% compared to the consensus estimate of $4.23 [1] Financial Performance Metrics - Net earned premiums, fees, and other income totaled $3.11 billion, exceeding the average estimate of $2.56 billion by five analysts, marking an 8.9% year-over-year increase [4] - Net investment income was reported at $133.5 million, slightly above the average estimate of $131.39 million, with a year-over-year change of +2.9% [4] - Fees and other income reached $484.4 million, surpassing the four-analyst average estimate of $463.68 million, representing a +10.3% change year-over-year [4] - Global Lifestyle's net earned premiums, fees, and other income amounted to $2.41 billion, exceeding the average estimate of $2.36 billion, with a year-over-year change of +7% [4] - Global Housing's net earned premiums were reported at $702.9 million, above the average estimate of $675.48 million, reflecting a +16.4% year-over-year increase [4] Stock Performance - Assurant's shares have returned -4.3% over the past month, contrasting with the Zacks S&P 500 composite's +2.1% change, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3]

Core Insights - Assurant reported quarterly earnings of $5.73 per share, exceeding the Zacks Consensus Estimate of $4.23 per share, and showing a significant increase from $3 per share a year ago, resulting in an earnings surprise of +35.46% [1] - The company achieved revenues of $3.25 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.67% and up from $2.99 billion year-over-year [2] Financial Performance - Over the last four quarters, Assurant has consistently surpassed consensus EPS estimates, achieving this four times [2] - The company has also topped consensus revenue estimates four times in the same period [2] Market Position - Assurant shares have underperformed the market, losing about 0.5% since the beginning of the year, while the S&P 500 has gained 16.5% [3] - The current Zacks Rank for Assurant is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $5.04 on revenues of $3.23 billion, and for the current fiscal year, it is $17.81 on revenues of $12.66 billion [7] - The outlook for the insurance industry, particularly the Zacks Insurance - Multi line sector, is favorable, ranking in the top 36% of over 250 Zacks industries [8]

Financial Performance - GAAP net income for Q3 2025 increased 99% to $265.6 million compared to $133.8 million in Q3 2024[6] - Adjusted EBITDA rose 75% to $431.5 million in Q3 2025, with a 13% increase to $433.5 million when excluding reportable catastrophes[6] - Adjusted earnings per diluted share, excluding reportable catastrophes, increased 13% to $5.76 compared to $5.08 in Q3 2024[6] - GAAP net income for Q3 2025 was $265.6 million, compared to $133.8 million in Q3 2024, representing a 98.5% increase[26] - Adjusted EBITDA for Q3 2025 reached $431.5 million, up from $246.9 million in Q3 2024, indicating a 74.7% growth[26] - Adjusted earnings per diluted share for Q3 2025 reached $5.73, up from $3.00 in Q3 2024, representing a 91.0% increase[30] - Total revenues for Q3 2025 were $3,231.5 million, compared to $2,967.7 million in Q3 2024, reflecting an 8.9% increase[30] - Net earned premiums for Q3 2025 were $2,627.2 million, up 8.7% from $2,417.2 million in Q3 2024[30] Segment Performance - Global Housing adjusted EBITDA increased 177% to $256.3 million in Q3 2025, with net earned premiums rising 16% to $702.9 million[8] - Global Lifestyle adjusted EBITDA grew 12% to $206.8 million in Q3 2025, driven by double-digit earnings growth across Connected Living and Global Automotive[7] - Adjusted EBITDA for the Lifestyle segment in Q3 2025 was $206.8 million, while the Housing segment reported $256.3 million[26] Growth Expectations - The company expects low double-digit growth in adjusted earnings per share and adjusted EBITDA growth approaching 10% for the full year 2025, both excluding reportable catastrophes[4] - The company anticipates a corporate and other adjusted EBITDA loss of approximately $120 million for 2025[14] Capital Management - Share repurchases and common stock dividends totaled $122 million in Q3 2025, with approximately 398 thousand shares repurchased for $81 million[11] - Capital deployment priorities include maintaining a strong financial position, supporting business growth through investments and M&A, and returning capital to shareholders[18] - Common stock dividends per share increased to $0.80 in Q3 2025 from $0.72 in Q3 2024[30] Financial Position - The holding company liquidity position was $613 million as of September 30, 2025, exceeding the targeted minimum level by $388 million[11] - Total assets as of September 30, 2025, were $35,782.1 million, compared to $35,020.6 million at the end of 2024[31] - Policyholder benefits and claims payable decreased to $2,722.1 million from $3,450.9 million at the end of 2024[31] Economic Outlook - The company continues to monitor macroeconomic conditions, including tariffs, which may impact future performance[18] - Assurant's financial outlook remains cautious due to potential risks from economic conditions, competitive pressures, and operational execution challenges[20] - The company expects a full-year depreciation expense of approximately $150 million and an effective tax rate of 19% to 21%[29] Catastrophe Impact - The company reported a total of $188.8 million in reportable catastrophes for the first nine months of 2025, compared to $196.9 million in the same period of 2024[26] - Adjusted EBITDA excluding reportable catastrophes for Q3 2025 was $433.5 million, compared to $385.1 million in Q3 2024, reflecting a 12.0% increase[26] - Adjusted EBITDA for Q3 2025 increased by 74.8%, including foreign exchange impact[29] - The company reported a 12.6% increase in Adjusted EBITDA, excluding reportable catastrophes, when including foreign exchange impact[29] Operational Performance - Adjusted EBITDA for Q3 2025 increased significantly, driven by improved operational performance and lower volatility from catastrophes[27] - The company emphasizes the importance of Adjusted EBITDA as a measure of operating performance, excluding items that do not represent ongoing operations[24]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the short term [3][4] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [4] Growth Score - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score assesses stocks based on price trends and earnings outlook changes, helping investors identify optimal buying opportunities [6] VGM Score - The VGM Score combines the three Style Scores, providing a comprehensive rating that highlights stocks with attractive value, growth forecasts, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in stock selection [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [9] Stock to Watch: Assurant (AIZ) - Assurant Inc. is a global risk management provider, operating in multiple regions including North America and Europe [12] - AIZ holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A, indicating solid performance potential [12] - The company is projected to achieve year-over-year earnings growth of 6.2% for the current fiscal year, supported by upward revisions in earnings estimates [13]