Assurant(AIZ) - 2025 Q2 - Quarterly Results

Assurant Second Quarter 2025 Financial Results Financial Highlights and CEO Commentary The company reported strong Q2 2025 results with 25% Adjusted EPS growth and raised its full-year outlook Q2 2025 Key Financial Metrics | Metric | Q2'25 | Q2'24 | Change | | :--- | :--- | :--- | :--- | | GAAP net income | $235.3M | $188.7M | 25% | | Adjusted EBITDA | $386.0M | $323.4M | 19% | | Adjusted EBITDA, ex. catastrophes | $415.8M | $369.1M | 13% | | GAAP net income per diluted share | $4.56 | $3.58 | 27% | | Adjusted earnings per diluted share | $5.10 | $4.08 | 25% | | Adjusted earnings, ex. catastrophes, per diluted share | $5.56 | $4.77 | 17% | - The company increased its 2025 outlook, now expecting Adjusted EPS (ex. catastrophes) growth to approach 10% and Adjusted EBITDA (ex. catastrophes) growth of mid-to-high single-digits[1][4] - CEO Keith Demmings attributed the strong results to growth in both Global Housing and Global Lifestyle, highlighting improved loss experience and momentum in mobile device protection[3] - Share repurchase guidance for 2025 was increased to a range of $250 to $300 million, reflecting the company's strong capital position and business performance[4][5] Consolidated Financial Performance Consolidated net income grew 25% and Adjusted EBITDA rose 19%, driven by both operating segments - GAAP net income rose 25% to $235.3 million, primarily due to growth in Global Housing, lower reportable catastrophes, and growth in Global Lifestyle[7] - Adjusted EBITDA increased 19% to $386.0 million; excluding reportable catastrophes, Adjusted EBITDA grew 13% to $415.8 million[7] - Adjusted earnings per diluted share, excluding reportable catastrophes, increased 17% to $5.56, driven by operational growth and share repurchases[7] - Total net earned premiums, fees and other income from operating segments increased 8% to $3.05 billion compared to Q2 2024[7] Segment Performance Both Global Lifestyle and Global Housing segments delivered strong Adjusted EBITDA growth in Q2 2025 Global Lifestyle The segment's Adjusted EBITDA grew 6%, driven by strong performance in Connected Living and Global Automotive Global Lifestyle Q2 2025 Results | Metric | Q2'25 | Q2'24 | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $201.4M | $189.7M | 6% | | Net earned premiums, fees and other income | $2,350.8M | $2,183.5M | 8% | - Adjusted EBITDA growth was primarily due to Connected Living, driven by global mobile protection and trade-in programs, with modest increases from Global Automotive[8] Global Housing Adjusted EBITDA surged 33%, benefiting from lower catastrophe losses and favorable non-catastrophe experience Global Housing Q2 2025 Results | Metric | Q2'25 | Q2'24 | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $214.4M | $160.9M | 33% | | Adjusted EBITDA, ex. reportable catastrophes | $244.2M | $206.4M | 18% | | Net earned premiums, fees and other income | $697.7M | $633.6M | 10% | - The increase in Adjusted EBITDA (ex-catastrophes) was primarily due to favorable non-catastrophe loss experience, including $33.9 million of favorable prior period reserve development, and top-line growth[9] Corporate and Other The segment's Adjusted EBITDA loss widened by 10% due to higher employee expenses and lower investment income Corporate and Other Q2 2025 Results | Metric | Q2'25 | Q2'24 | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $(29.8)M | $(27.2)M | (10)% | - The increased Adjusted EBITDA loss was driven by higher employee-related expenses and lower investment income[10] Capital Management and Liquidity The company maintained a strong capital position with $518 million in liquidity and returned $105 million to shareholders - Holding company liquidity was $518 million as of June 30, 2025, significantly above the targeted minimum of $225 million[11] - In Q2 2025, the company repurchased 319,000 shares for $62 million and paid $43 million in dividends[11] - $225 million remains under the current share repurchase authorization as of August 1, 2025[11] 2025 Company Outlook Assurant raised its full-year 2025 outlook, expecting Adjusted EPS growth approaching 10% Updated 2025 Full-Year Outlook | Metric | 2024 Actual | 2025 Outlook | | :--- | :--- | :--- | | Adjusted EBITDA, ex. catastrophes | $1,569M | Mid- to high single-digit growth | | Adjusted earnings, ex. catastrophes, per diluted share | $20.35 | Approaching 10% growth | - Global Lifestyle Adjusted EBITDA is expected to increase, driven by growth in Connected Living and Global Automotive[12] - Global Housing Adjusted EBITDA, excluding reportable catastrophes, is projected to deliver strong growth[12] - Capital deployment priorities include maintaining a strong financial position, funding business growth, and returning capital to shareholders[12][13] Financial Statements The financial statements reflect year-over-year growth in revenues, net income, total assets, and equity Consolidated Statement of Operations Total revenues increased to $3.16 billion, and net income rose to $235.3 million for the second quarter Q2 2025 Statement of Operations Highlights (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total revenues | $3,158.4 | $2,924.9 | | Total benefits, losses and expenses | $2,869.4 | $2,692.0 | | Income before provision for income taxes | $289.0 | $232.9 | | Net income | $235.3 | $188.7 | Consolidated Condensed Balance Sheets Total assets grew to $35.53 billion and total equity increased to $5.50 billion as of June 30, 2025 Balance Sheet Highlights (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total assets | $35,525.9 | $35,020.6 | | Total liabilities | $30,027.4 | $29,913.9 | | Total equity | $5,498.5 | $5,106.7 | Non-GAAP Financial Measures and Reconciliations This section provides definitions and reconciliations for non-GAAP metrics like Adjusted EBITDA and Adjusted EPS - Adjusted EBITDA is defined as net income excluding items such as net realized investment gains/losses, interest expense, and taxes[22] - Adjusted Earnings per Diluted Share excludes similar items to provide a measure of stockholder value based on ongoing operations[24] Reconciliation of GAAP Net Income to Adjusted EBITDA (Q2 2025, in millions) | Line Item | Amount | | :--- | :--- | | GAAP net income | $235.3 | | Less: Interest expense | $26.7 | | Less: Provision for income taxes | $53.7 | | Less: Depreciation expense | $35.9 | | Less: Amortization of purchased intangible assets | $15.1 | | Adjustments, pre-tax | $19.3 | | Adjusted EBITDA | $386.0 | Safe Harbor Statement This section outlines forward-looking statements and associated risks, directing investors to SEC filings - The report contains forward-looking statements based on current plans and expectations, which are not guarantees of future performance[17][18] - Key risk factors that could cause actual results to differ include general economic conditions, loss of significant clients, competitive pressures, and catastrophe losses[18] - Investors are advised to refer to the risk factors identified in the company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q[19]