Assurant Q3 Earnings & Revenues Top Estimates on Higher Premiums

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]