Assurant (AIZ) Q4 Earnings Top on Solid Global Housing Results

Core Insights - Assurant, Inc. reported a fourth-quarter 2023 net operating income of $4.58 per share, exceeding the Zacks Consensus Estimate by 23.4% and reflecting a year-over-year increase of 41.8% [1] - Total revenues for the quarter rose 12.4% year over year to $3 billion, driven by higher net earned premiums, fees, and net investment income, surpassing the Zacks Consensus Estimate by 7.9% [1] - Adjusted EBITDA, excluding reportable catastrophes, increased 29% to $382.4 million [1] Segmental Performance - Global Housing's net earned premiums, fees, and other income increased 7% to $545.8 million, although it fell short of the Zacks Consensus Estimate of $553 million [2] - Adjusted EBITDA for Global Housing was $186.1 million, up 56% year over year, with adjusted EBITDA excluding reportable catastrophes rising 48% to $208 million [2] - Global Lifestyle's net earned premiums, fees, and other income grew 13% to $2.3 billion, exceeding the Zacks Consensus Estimate of $2.1 billion [2] Full-Year Highlights - Adjusted earnings for 2023 increased 39% to $15.49 per share [4] - Total net earned premiums, fees, and other income from Global Lifestyle and Global Housing segments reached $10.7 billion, an 8% increase [4] - Adjusted EBITDA, excluding reportable catastrophes, rose 21% to $1.4 billion [4] Financial Position - As of December 31, 2023, liquidity stood at $606 million, significantly above the targeted minimum level of $225 million [5] - Total assets increased by 1.6% to $33.6 billion from the end of 2022 [5] - Debt decreased by 2% to $2.1 billion [5] Share Repurchase and Dividend Update - In 2023, Assurant repurchased approximately 1.3 million shares for $200 million, with an additional 0.06 million shares repurchased for $20 million from January 1 to February 2, 2024 [6] - Total dividends amounted to $152 million in 2023 [6] 2024 Guidance - Assurant anticipates adjusted EBITDA, excluding reportable catastrophes, to grow by mid-single digits, driven by both Global Lifestyle and Global Housing [7] - Adjusted EPS, excluding catastrophes, is expected to grow modestly below adjusted EBITDA growth due to increased depreciation expenses [7] - The effective tax rate is projected to be between 20% and 22% [7]