Assurant Q4 Earnings & Revenues Beat Estimates on Higher Premiums

Core Insights - Assurant, Inc. (AIZ) reported a fourth-quarter 2025 net operating income of $5.61 per share, exceeding the Zacks Consensus Estimate by 1.08%, with a year-over-year increase of 17% [1] - Total revenues rose by 7.5% year over year to $3.3 billion, driven by higher net earned premiums, net investment income, and fees, surpassing the Zacks Consensus Estimate by 2.7% [2] - Adjusted EBITDA, excluding reportable catastrophes, increased by 3% to $445.9 million, reflecting growth in both Global Housing and Global Lifestyle segments [2] Financial Performance - Total benefits, losses, and expenses increased by 7.4% to $3.1 billion, primarily due to higher policyholder benefits and administrative expenses, exceeding the estimate of $2.8 billion [3] - Net earned premiums, fees, and other income in Global Housing increased by 10% to $711.4 million, driven by growth in policies in-force and higher average premiums, beating the Zacks Consensus Estimate of $697 million [4] - Adjusted EBITDA for Global Housing was $275.6 million, up 22% year over year, aided by lower pre-tax reportable catastrophes [5] Segment Analysis - Global Lifestyle's net earned premiums, fees, and other income rose by 7% to $2.5 billion, primarily due to growth in Connected Living and Global Automotive, surpassing the Zacks Consensus Estimate of $2.4 billion [6] - Adjusted EBITDA for Global Lifestyle was $195.3 million, a 2% year-over-year increase, driven by improved loss experience in Global Automotive and growth in Connected Living [7] - The adjusted EBITDA loss at Corporate & Other was $34.4 million, an improvement from the previous year's loss of $35.7 million, mainly due to lower third-party expenses [8] Full-Year Highlights - Adjusted earnings for 2025 increased by 19% to $19.77 per share, slightly beating the Zacks Consensus Estimate [9] - Total net earned premiums, fees, and other income from Global Lifestyle and Global Housing segments totaled $12.35 billion, up 8.1% [11] Financial Position - As of December 31, 2025, liquidity stood at $887 million, significantly above the targeted minimum of $225 million, with total assets increasing by 3.6% to $36.3 billion [12] - Debt increased by 6% year over year to $2.2 billion, while total shareholders' equity rose by 15% to $5.87 billion [12] Shareholder Returns - In 2025, share repurchases and dividends totaled $468 million, with $300 million spent on repurchasing 1.4 million shares [13] - As of early February 2026, Assurant had $745 million remaining under its current repurchase authorization [13] 2026 Guidance - Assurant expects adjusted EBITDA for 2026 to be flat to mid-high single-digit growth, with Global Lifestyle projected to increase in the high single digits [14] - Global Housing adjusted EBITDA is anticipated to decrease, while Corporate and Other adjusted EBITDA loss is expected to approximate $140 million [15] - Adjusted earnings per diluted share are expected to remain consistent with 2025 levels or increase mid-to-high single digits [16] Capital Deployment - Capital deployment priorities will focus on maintaining a strong financial position, supporting business growth through organic investments and M&A, and returning capital to shareholders [17]