Assurant Q4 Earnings & Revenues Surpass Estimates, Premiums Rise Y/Y

Core Viewpoint - Assurant, Inc. reported strong fourth-quarter 2024 results, with net operating income and total revenues exceeding expectations, driven by growth in Global Housing and Connected Living segments [1][2]. Financial Performance - Fourth-quarter net operating income was $4.79 per share, beating the Zacks Consensus Estimate by 10.6%, and increased 5% year over year [1]. - Total revenues rose 4.4% year over year to$ 3.1 billion, surpassing the Zacks Consensus Estimate by 2.6% [2]. - Adjusted EBITDA, excluding reportable catastrophes, increased 13% to $431.5 million [2]. Expense Analysis - Total benefits, losses, and expenses increased 3.5% to$ 2.8 billion, primarily due to higher policyholder benefits and administrative expenses, exceeding the estimate of $2.6 billion [3]. Segmental Performance - Global Housing net earned premiums, fees, and other income increased 19% to$ 647.4 million, driven by Homeowners' growth, beating the Zacks Consensus Estimate of $607 million [4]. - Adjusted EBITDA for Global Housing was$ 225.4 million, up 21% year over year, with a 32% increase when excluding reportable catastrophes [5]. - Global Lifestyle net earned premiums, fees, and other income rose 2% to $2.3 billion, driven by Connected Living growth, exceeding the Zacks Consensus Estimate of$ 2.2 billion [6]. - Adjusted EBITDA for Global Lifestyle decreased 6% year over year to $191.7 million, primarily due to lower results in Global Automotive [7]. Full-Year Highlights - Adjusted earnings for 2024 increased 7% to$ 16.64 per share, beating the Zacks Consensus Estimate by 2.7% [9]. - Total net earned premiums, fees, and other income from Global Lifestyle and Global Housing segments totaled $11.42 billion, up 7% [9]. - Adjusted EBITDA for the full year, excluding reportable catastrophes, increased 15% to$ 1.5 billion [9]. Financial Position - As of December 31, 2024, liquidity was $673 million, significantly above the targeted minimum level of$ 225 million [11]. - Total assets increased 4.1% to $35 billion, while total shareholders' equity rose 6.2% year over year to$ 5.1 billion [11]. Share Repurchase and Dividend Update - In 2024, Assurant repurchased 1.5 million shares for $300 million and paid$ 156 million in dividends, with $351 million remaining under the current repurchase authorization [12]. 2025 Guidance - Assurant expects adjusted EBITDA, excluding reportable catastrophes, to increase modestly in 2025, with growth projected in both Global Lifestyle and Global Housing segments [13][14]. - Adjusted earnings per diluted share growth rate is expected to increase modestly, with an effective tax rate projected at approximately 20% to 22% [15].