Assurant(AIZ) - 2025 Q1 - Quarterly Results

First Quarter 2025 Financial Highlights Assurant reported strong Q1 2025 results, driven by Global Housing and improved Global Automotive, reaffirming its 2025 earnings outlook - The company is pleased with Q1 results, supported by strong performance in Global Housing and improved loss experience in Global Automotive, and is making progress against its strategic priorities[2] - Assurant reaffirmed its 2025 outlook for earnings growth, citing its strong financial and capital position, and its focus on long-term growth and shareholder value[3] Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | GAAP net income | $146.6 million | $236.4 million | (38)% | | Adjusted EBITDA | $282.2 million | $370.7 million | (24)% | | Adjusted EBITDA, ex. reportable catastrophes | $439.2 million | $383.7 million | 14% | | GAAP net income per diluted share | $2.83 | $4.47 | (37)% | | Adjusted earnings per diluted share | $3.39 | $4.78 | (29)% | | Adjusted earnings, ex. reportable catastrophes, per diluted share | $5.79 | $4.97 | 16% | Consolidated Financial Results Consolidated GAAP net income decreased 38% to $146.6 million due to increased catastrophes, but Adjusted EBITDA (ex-catastrophes) rose 14% to $439.2 million - GAAP net income decreased by 38% to $146.6 million, mainly due to higher reportable catastrophes in Global Housing[7] - Excluding reportable catastrophes, Adjusted EBITDA increased 14% (16% on a constant currency basis) to $439.2 million, driven by higher earnings in Global Housing[7] - Adjusted earnings, excluding reportable catastrophes, per diluted share increased 16% to $5.79, benefiting from higher Global Housing earnings and share repurchases[7] - Total net earned premiums, fees, and other income from the operating segments grew 7% to $2.96 billion (9% on a constant currency basis)[8] Segment Performance Segment performance was mixed: Global Housing's Adjusted EBITDA (ex-catastrophes) rose 31%, Global Lifestyle's Adjusted EBITDA fell 5%, and Corporate and Other's loss improved Global Lifestyle Global Lifestyle's Adjusted EBITDA decreased 5% to $197.8 million, while net earned premiums and fees increased 5% due to mobile protection growth Global Lifestyle Q1 Financials ($ in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $197.8 million | $207.7 million | (5)% | | Net earned premiums, fees and other income | $2,306.6 million | $2,187.8 million | 5% | - Adjusted EBITDA decreased 5% (2% on a constant currency basis); excluding a $6.9 million one-time client contract benefit in Q1 2024, Adjusted EBITDA grew modestly on a constant currency basis[11] - Net earned premiums and fees increased 5% (7% constant currency), primarily driven by Connected Living from growth in global mobile device protection and a new financial services program[11] Global Housing Global Housing's Adjusted EBITDA fell 42% to $112.4 million due to catastrophes, but excluding them, it surged 31% to $269.1 million from top-line growth Global Housing Q1 Financials ($ in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $112.4 million | $192.5 million | (42)% | | Reportable catastrophes | $156.7 million | $12.9 million | N/A | | Adjusted EBITDA, ex. reportable catastrophes | $269.1 million | $205.4 million | 31% | | Net earned premiums, fees and other income | $656.8 million | $572.2 million | 15% | - The decrease in Adjusted EBITDA was primarily due to $143.8 million of higher pre-tax reportable catastrophes, with about $125 million from California wildfires[12] - Excluding reportable catastrophes, Adjusted EBITDA increased 31%, driven by top-line growth in Homeowners and favorable non-catastrophe loss experience[12] Corporate and Other Corporate and Other's Adjusted EBITDA loss improved by 5% to $(28.0) million in Q1 2025, primarily due to lower third-party expenses Corporate and Other Q1 Financials ($ in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $(28.0) million | $(29.5) million | 5% | - The improved Adjusted EBITDA loss was primarily driven by lower third-party expenses[13] Capital Management and Liquidity The holding company maintained strong liquidity of $501 million as of March 31, 2025, returning $103 million to shareholders in Q1 2025 - Holding company liquidity totaled $501 million as of March 31, 2025, which is $276 million above the company's minimum target of $225 million[14] - In Q1 2025, the company returned a total of $103 million to shareholders, consisting of $62 million in share repurchases (299 thousand shares) and $41 million in common stock dividends[14] - $287 million remains under the current share repurchase authorization as of May 2, 2025[14] 2025 Full-Year Outlook Assurant reaffirmed its 2025 outlook, expecting modest growth in Adjusted EBITDA and earnings per diluted share (ex-catastrophes) across its key segments 2025 Outlook vs. 2024 Actuals | Metric | 2024 Actual | 2025 Outlook | | :--- | :--- | :--- | | Adjusted EBITDA, ex. reportable catastrophes | $1,569 million | Modest growth | | Adjusted earnings, ex. reportable catastrophes, per diluted share | $20.35 | Modest growth | - Global Lifestyle Adjusted EBITDA is expected to increase from growth in Connected Living and Global Automotive[16] - Global Housing Adjusted EBITDA, excluding reportable catastrophes, is now expected to increase[16] - Corporate and Other Adjusted EBITDA loss is expected to be approximately $115 million[16] Supplementary Information This section provides context for financial results, including earnings call details, company overview, forward-looking statements, non-GAAP definitions, and consolidated financial statements Non-GAAP Financial Measures Reconciliation This section defines and reconciles non-GAAP measures like Adjusted EBITDA and Adjusted Earnings per Diluted Share, offering a clearer view of operational performance - Adjusted EBITDA is defined as net income excluding items like net realized investment gains/losses, interest, taxes, depreciation, and amortization of purchased intangible assets to better show ongoing operational performance[24] - Adjusted Earnings, Excluding Reportable Catastrophes, per Diluted Share is used as an important measure of stockholder value, excluding volatile items to facilitate period-over-period comparisons[28] Reconciliation of GAAP Net Income to Adjusted EBITDA ($ in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP net income | $146.6 million | $236.4 million | | Adjustments (Interest, Taxes, D&A, etc.) | $135.6 million | $89.3 million | | Adjusted EBITDA | $282.2 million | $370.7 million | | Reportable catastrophes | $157.0 million | $13.0 million | | Adjusted EBITDA, ex. reportable catastrophes | $439.2 million | $383.7 million | Consolidated Financial Statements The consolidated financial statements show a decrease in Q1 2025 net income to $146.6 million and a stable balance sheet with $34,988.4 million in total assets Consolidated Statement of Operations Highlights ($ in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenues | $3,074.0 million | $2,880.1 million | | Total benefits, losses and expenses | $2,890.3 million | $2,587.2 million | | Net income | $146.6 million | $236.4 million | | Diluted net income per share | $2.83 | $4.47 | Consolidated Balance Sheet Highlights ($ in millions) | Metric | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total assets | $34,988.4 million | $35,020.6 million | | Total liabilities | $29,754.2 million | $29,913.9 million | | Total equity | $5,234.2 million | $5,106.7 million |