Company Overview - Assurant (AIZ) is expected to report a year-over-year decline in earnings of 37.2%, with projected earnings of $3 per share for the quarter ended March 2025 [3][12] - Revenue is anticipated to increase by 5.7% year-over-year, reaching $3.05 billion [3] Earnings Expectations - The consensus EPS estimate has been revised down by 0.77% over the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Assurant is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.53%, suggesting a likelihood of beating the consensus EPS estimate [10][11] Historical Performance - Assurant has a strong track record, having beaten consensus EPS estimates in the last four quarters, with a notable surprise of +10.62% in the most recent quarter [12][13] Industry Context - Corebridge Financial (CRBG), another player in the insurance industry, is expected to report earnings of $1.15 per share, reflecting a year-over-year increase of 4.6%, but with a revenue decline of 10.9% [17] - Corebridge's consensus EPS estimate has been revised down by 2.2%, resulting in a negative Earnings ESP of -0.38% and a Zacks Rank of 4 (Sell), making it difficult to predict an earnings beat [18]

Financial Performance - Assurant reported total assets of $35.02 billion and a debt to total capital ratio of 29.0% as of December 31, 2024[19]. - In 2024, net earned premiums, fees, and other income for the Global Lifestyle segment reached $8.97 billion, up from $8.56 billion in 2023, representing a growth of 4.8%[35]. - The Connected Living segment generated $4.81 billion in net earned premiums, fees, and other income in 2024, an increase of 9.8% from $4.38 billion in 2023[35]. - The Global Automotive segment reported $4.16 billion in net earned premiums, fees, and other income in 2024, a slight decrease of 0.6% from $4.18 billion in 2023[35]. - The total net earned premiums, fees, and other income for Global Housing in 2024 is projected to be $2,457.0 million, up from $2,142.9 million in 2023, reflecting a growth of approximately 14.7%[54]. - Segment Adjusted EBITDA for Global Housing increased to $671.2 million in 2024 from $574.2 million in 2023, representing a growth of about 16.9%[54]. - Assurant returned $455.8 million to shareholders through share repurchases and dividends in 2024[27]. Market Trends and Opportunities - The mobile protection market is expanding, with growth opportunities in bundled protection products and enhanced customer experiences through digital solutions and AI[44]. - U.S. new vehicle sales have improved slightly in 2023, driven by increased vehicle availability and OEM incentives[47]. - The U.S. renters insurance market is growing, with opportunities to increase market share through investments in digital platforms and expanded offerings[67]. - The company aims to grow its portfolio by strengthening partnerships and investing in technology, including digital and AI solutions[22]. Innovation and Technology - The company opened its Innovation and Device Care Center in October 2024 to enhance mobile device lifecycle solutions and leverage automation and AI[26]. - Assurant is investing in technology, including artificial intelligence, to enhance customer experience and operational efficiency, with ongoing expenses related to digital capabilities and research and development[169]. Employee and Talent Management - As of December 31, 2024, Assurant had approximately 14,200 employees, with 75% located in North America and 60% of the global workforce being women[75]. - The global turnover rate for 2024 was 13%, with a 5% turnover for managerial roles and 17% for frontline employees, reflecting a year-over-year improvement of 2 and 1 percentage points respectively[76]. - Assurant's talent strategy includes establishing Global Capability Centers to leverage global scale and access to top talent, enhancing client growth and innovation[77]. - The company is committed to a hybrid work model, with a majority of employees working virtually, supporting both business and talent strategies[89]. - Assurant invests in employee learning and development through various initiatives, including access to industry-leading content and a mentorship program[90]. Regulatory and Compliance - The company is subject to extensive federal, state, and international regulations, which vary by jurisdiction[105]. - The company is licensed to sell insurance in all 50 states, Puerto Rico, and the District of Columbia, ensuring compliance with local regulations[108]. - The National Association of Insurance Commissioners (NAIC) has established risk-based capital (RBC) standards to assess insurer solvency, which could change in the future[110]. - The SEC adopted new rules in July 2023 requiring public companies to disclose material cybersecurity incidents and risk management strategies[130]. - The NAIC has adopted a model bulletin regarding the use of artificial intelligence by insurers, with approximately 20 states having adopted it and further adoption expected[131]. Risk Management - The company’s risk management framework is reviewed annually to align with business operations and changes in laws and regulations[137]. - Significant risks include reliance on a few major clients, which could adversely affect revenues and profits if relationships deteriorate or contracts are not renewed on favorable terms[156]. - The company faces macroeconomic risks that could materially impact its financial condition and results of operations[157]. - Financial risks include potential declines in mobile device values and regulatory compliance issues that could affect sales[159]. - The company utilizes a three lines of defense model for risk management, with the first line being business operations, the second line being Global Risk Management and Compliance, and the third line being Internal Audit[147]. Competitive Landscape - The company faces competition from various sectors, including insurance, warranty, financial services, and technology, requiring continuous adaptation to market changes[73]. - The company faces significant competitive pressures from various sectors, including insurance, financial services, and technology, which could adversely affect revenues and profits[166]. - There is a risk that clients may obtain more favorable terms from competitors, impacting the persistency of policies and overall revenues[167]. Environmental and Climate Risks - Catastrophe and non-catastrophe losses, influenced by climate change and inflation, could significantly reduce profitability and impact financial condition[191]. - Increased unpredictability of weather-related events may lead to higher claims and catastrophe losses, adversely affecting results of operations[192]. - General inflationary pressures and supply chain disruptions have increased costs of claims, particularly in Global Housing and Global Automotive businesses[198]. Financial Health and Investments - The company reported a $0.8 million unfavorable impact to net income in 2024 due to foreign exchange-related losses[205]. - A downgrade of the company's senior debt credit ratings could adversely affect liquidity, increase borrowing costs, and reduce demand for debt securities[204]. - The company is subject to interest rate risk, with fluctuations potentially leading to unrealized losses in its investment portfolio[213]. - The company's investment portfolio is exposed to credit risk, particularly from corporate bonds and other fixed-income securities, which could lead to realized investment losses[215].

Financial Data and Key Metrics Changes - In 2024, the company achieved a 15% growth in adjusted EBITDA, reaching over $1.5 billion, and a 19% increase in adjusted earnings per share, exceeding $20, both excluding catastrophes [8][27] - The fourth quarter saw a 13% increase in adjusted EBITDA and earnings per share, both excluding catastrophes, driven primarily by Global Housing [29] Business Line Data and Key Metrics Changes - Global Lifestyle's Connected Living segment grew 9% excluding $25 million of investments and $12 million of unfavorable foreign exchange [28] - Global Auto experienced an 11% decline in results compared to the previous year, primarily due to lower real estate joint venture partnership income [36] - Global Housing's adjusted EBITDA was $225 million in the fourth quarter, with a 32% increase excluding catastrophes, benefiting from robust policy growth in homeowners [38][39] Market Data and Key Metrics Changes - The company reported a year-over-year increase of 16% in policies in force for the lender-placed homeowners business, driven by hard insurance markets [54] - The company has renewed significant client relationships, including major mobile carriers and financial institutions, enhancing its market position [17] Company Strategy and Development Direction - The company is focused on executing and scaling new partnerships and program launches, particularly in lifestyle and housing, with expectations of a one-year payback on investments made in 2024 [23] - The company aims to leverage its B2B2C business model to enhance customer experiences and drive growth through innovative solutions [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook for Global Automotive, citing stabilization in earnings due to targeted actions [12] - The company anticipates modest growth in adjusted EBITDA and earnings per share for 2025, driven by strong underlying trends despite foreign exchange headwinds [41][43] Other Important Information - The company returned over $450 million to shareholders in 2024, including $300 million in share repurchases, and has increased its common stock dividend by 11% [31][32] - The company was added to the S&P High Yield Dividend Aristocrats Index, highlighting its strong capital returns [32] Q&A Session Summary Question: Can you talk about the Homeowners business and the placement rate? - Management noted a 16% year-over-year increase in policies in force, with strong growth driven by client growth and market conditions in California [54][55] Question: How do you see top-line growth in Global Lifestyle? - Management expressed excitement about growth in Connected Living, emphasizing the importance of securing mobile clients and optimizing customer experience [58][60] Question: Are you seeing elevated losses in Global Auto? - Management indicated that losses have stabilized, with expectations for growth in 2025 [74][76] Question: What is the outlook for reinsurance renewal costs? - Management expects to maintain a consistent program structure with favorable pricing due to strong relationships with reinsurers [103][106] Question: How do tariffs impact input costs? - Management has not included tariffs in their guidance due to uncertainty but is monitoring potential impacts on consumer demand and input costs [109][111] Question: What is the outlook for the combined ratio in the Housing segment? - Management expects a mid-80s combined ratio for 2025, even with anticipated losses from California wildfires [91][125] Question: How can the company be better appreciated in the market? - Management emphasized the strength and resilience of the housing business and the need to communicate its unique value proposition more effectively [128][130]

Keith Meier Executive Vice President & Chief Financial Officer Cautionary Statement Some of the statements in this presentation, including our business and financial plans and any statements regarding our anticipated future financial performance, business prospects, growth, operating strategies, valuation and similar matters, such as performance outlook, financial objectives, business drivers, our ability to gain market share, and the strength, diversity, predictability and resiliency of enterprise and segm ...

Catastrophes and Financial Impact - Assurant expects to record approximately $50 million pre-tax ($40 million after-tax) of reportable catastrophes for Q4 2024, primarily driven by Hurricane Milton[6] - The recent California wildfires are expected to be a reportable catastrophe for Q1 2025[7] Property Sale and Relocation - Assurant entered into a Purchase and Sale Agreement to sell its Miami, Florida campus for $126 million[5] - The transaction is subject to a 90-day due diligence period and development approvals, which could take 18 to 24 months[5] - Assurant plans to relocate its Miami operations to a new leased site by the end of Q2 2025[5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2024 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 001-31978 Assurant, Inc. (Exact name of registrant as specified in its charter) Delaware 39-1126612 (State or other jurisdiction of incorpo ...

Assurant, Inc. (NYSE:AIZ) Q3 2024 Earnings Conference Call November 6, 2024 8:00 AM ET Company Participants Sean Moshier - Vice President, Investor Relations Keith Demmings - President and Chief Executive Officer Keith Meier - Chief Financial Officer Conference Call Participants Brian Meredith - UBS Mark Hughes - Truist Tommy McJoynt - KBW John Barnidge - Piper Sandler Operator Welcome to Assurant's Third Quarter 2024 Conference Call and Webcast. [Operator Instructions] It is now my pleasure to turn the flo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Delaware 001-31978 39-1126612 (State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.) Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered Common Stock, $0.01 Par Value AIZ New York Stock Exchange 5.25% Subordinated Notes due 2061 AIZN New York Stock Exchange FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section provides the unaudited interim financial statements and management's analysis of the company's financial performance and condition [Item 1. Consolidated Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(unaudited)) This section presents the unaudited consolidated financial statements for Assurant, Inc. as of June 30, 2024, and for the three and six-month periods then ended. It includes the balance sheets, statements of operations, comprehensive income, changes in equity, and cash flows, along with accompanying notes detailing accounting policies and segment information [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This subsection presents the unaudited consolidated balance sheets, detailing assets, liabilities, and equity as of June 30, 2024, and December 31, 2023 Consolidated Balance Sheet Highlights (as of June 30, 2024) | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Investments | $8,524.9M | $8,220.9M | | Cash and cash equivalents | $1,713.1M | $1,627.4M | | Total Assets | $33,773.0M | $33,635.2M | | Total Liabilities | $28,768.7M | $28,825.7M | | Total Equity | $5,004.3M | $4,809.5M | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) This subsection provides the unaudited consolidated statements of operations, outlining revenues, expenses, and net income for the three and six-month periods ended June 30, 2024 and 2023 Consolidated Statements of Operations Highlights | Metric | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $2,924.9M | $2,731.6M | $5,805.0M | $5,374.4M | | Net Income | $188.7M | $156.3M | $425.1M | $269.9M | | Diluted EPS | $3.58 | $2.90 | $8.05 | $5.01 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This subsection details the unaudited consolidated statements of cash flows, categorizing cash movements from operating, investing, and financing activities for the six-month periods ended June 30, 2024 and 2023 Consolidated Cash Flow Summary (Six Months Ended June 30) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $793.4M | $445.0M | | Net cash used in investing activities | ($521.6M) | ($483.8M) | | Net cash used in financing activities | ($177.0M) | ($100.4M) | | **Change in cash and cash equivalents** | **$85.7M** | **($135.0M)** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This subsection provides detailed notes to the unaudited consolidated financial statements, explaining significant accounting policies, segment information, and other relevant disclosures - The company operates through two main segments: Global Lifestyle (Connected Living and Global Automotive) and Global Housing (Homeowners and Renters)[21](index=21&type=chunk) Adjusted EBITDA by Segment (Six Months Ended June 30) | Segment | 2024 | 2023 | | :--- | :--- | :--- | | Global Lifestyle | $397.4M | $395.9M | | Global Housing | $353.4M | $223.0M | | Corporate and Other | ($56.7M) | ($52.9M) | Net Earned Premiums, Fees and Other Income by Segment (Six Months Ended June 30) | Segment | 2024 | 2023 | | :--- | :--- | :--- | | Global Lifestyle | $4,371.3M | $4,149.2M | | Global Housing | $1,205.8M | $1,041.9M | - For the six months ended June 30, 2024, the company experienced net favorable prior year loss development of **$65.0 million**, compared to **$15.0 million** in the same period of 2023. Global Housing was the primary contributor with **$48.4 million** in favorable development[77](index=77&type=chunk)[79](index=79&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results of operations for the second quarter and first half of 2024. The analysis covers consolidated results, detailed performance of the Global Lifestyle and Global Housing segments, investment portfolio performance, and liquidity and capital resources. The company highlights increased net income driven by Global Housing's performance and lower losses from non-core operations [Executive Summary](index=40&type=section&id=Executive%20Summary) This subsection provides a high-level overview of the company's financial performance, highlighting key drivers for changes in consolidated net income and segment-level Adjusted EBITDA - Consolidated net income for Q2 2024 increased **21% YoY** to **$188.7 million**, primarily due to lower after-tax losses from non-core operations and a lower effective tax rate[115](index=115&type=chunk) - Global Lifestyle Adjusted EBITDA decreased **4%** in Q2 2024, driven by lower Global Automotive results from inflation-related claims costs and investments in new programs[116](index=116&type=chunk) - Global Housing Adjusted EBITDA grew **4%** in Q2 2024, despite a **$32.1 million** increase in reportable catastrophes, driven by top-line growth in Homeowners[118](index=118&type=chunk) [Global Lifestyle Segment Analysis](index=43&type=section&id=Global%20Lifestyle%20Segment%20Analysis) This subsection analyzes the financial performance of the Global Lifestyle segment, detailing changes in Adjusted EBITDA and total revenues, along with contributing factors Global Lifestyle Financial Performance | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $189.7M | $197.0M | -4% | | Total Revenues | $2,269.2M | $2,189.8M | +4% | - The decrease in Adjusted EBITDA was primarily driven by elevated claims costs in Global Automotive due to inflation on labor and parts, investments in new client programs, and lower mobile trade-in volumes[131](index=131&type=chunk) - Revenue growth was driven by a **20% increase** in fees and other income, mainly from newly launched mobile trade-in programs, and a **1% increase** in net earned premiums from global mobile device protection programs[132](index=132&type=chunk) [Global Housing Segment Analysis](index=45&type=section&id=Global%20Housing%20Segment%20Analysis) This subsection examines the financial performance of the Global Housing segment, focusing on changes in Adjusted EBITDA, total revenues, and the impact of reportable catastrophes Global Housing Financial Performance | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $160.9M | $154.6M | +4% | | Total Revenues | $663.5M | $561.8M | +18% | | Reportable Catastrophes | $45.5M | $13.4M | +240% | - Adjusted EBITDA increased despite significantly higher reportable catastrophes, driven by strong growth in the Homeowners business from new lender-placed programs, higher insured values, and operational efficiencies[139](index=139&type=chunk) - The segment experienced **$17.0 million** of favorable non-catastrophe prior period reserve development in Q2 2024, compared to **$27.7 million** in Q2 2023[139](index=139&type=chunk) [Investments Analysis](index=48&type=section&id=Investments%20Analysis) This subsection provides an analysis of the company's investment portfolio, detailing total investments and net investment income, along with factors influencing changes - Total investments increased to **$8.52 billion** as of June 30, 2024, from **$8.22 billion** at year-end 2023[154](index=154&type=chunk) Net Investment Income | Period | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Investment Income | $124.7M | $112.9M | $251.4M | $218.1M | - The increase in net investment income was primarily driven by higher yields and asset balances in fixed maturity securities[155](index=155&type=chunk)[157](index=157&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) This subsection discusses the company's liquidity position, capital resources, and capital deployment activities, including holding company liquidity and share repurchases - As of June 30, 2024, the company had approximately **$734.7 million** in holding company liquidity, which is **$509.7 million** above its targeted minimum level of **$225.0 million**[167](index=167&type=chunk) - During the first six months of 2024, the company returned capital to shareholders through **$80.0 million** in common stock repurchases and dividend payments totaling **$77.3 million**[169](index=169&type=chunk)[171](index=171&type=chunk) - The company consolidated its main reinsurance purchases into a single placement date of April 2024, with estimated 2024 premiums of **$188.1 million**, down from **$207.2 million** in 2023[160](index=160&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the company's 2023 Annual Report on Form 10-K and the Investments section within this report for disclosures about market risk - The company's disclosures about market risk are referenced to 'Item 7A—Quantitative and Qualitative Disclosures About Market Risk' in the 2023 Annual Report and the 'Investments' section of the MD&A in this Q2 2024 report[190](index=190&type=chunk) [Item 4. Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2024. The company also noted the ongoing multi-year implementation of a new global financial system (GFS), which became operational in Q2 2024 and resulted in modifications to internal controls - Management concluded that as of June 30, 2024, the company's disclosure controls and procedures were effective[191](index=191&type=chunk) - The company is in the process of a multi-year implementation of an integrated global financial system (GFS), with the first phase becoming operational in Q2 2024, leading to modifications in internal controls over financial reporting[192](index=192&type=chunk) [PART II OTHER INFORMATION](index=54&type=section&id=PART%20II%20OTHER%20INFORMATION) This section provides additional information beyond the financial statements, including legal proceedings, risk factors, equity security sales, and a list of exhibits [Item 1. Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 14 of the Consolidated Financial Statements for information on material pending legal proceedings. Management does not believe pending matters are likely to have a material adverse effect on the company's financial condition - For details on legal proceedings, the report refers to Note 14, 'Commitments and Contingencies—Legal and Regulatory Matters'[196](index=196&type=chunk) - Management does not currently believe that pending legal matters will have a material adverse effect on the company's financial condition[106](index=106&type=chunk) [Item 1A. Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) This section states that there are no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023 - The report refers to 'Item 1A—Risk Factors' in the 2023 Annual Report for a discussion of potential risks and uncertainties[197](index=197&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides details on the company's common stock repurchases during the second quarter of 2024. A total of 234,276 shares were repurchased at an average price of $171.35 per share Issuer Purchases of Equity Securities (Q2 2024) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2024 | 56,426 | $176.91 | | May 2024 | 57,011 | $170.05 | | June 2024 | 120,839 | $169.37 | | **Total** | **234,276** | **$171.35** | - As of June 30, 2024, **$594.5 million** remained available for repurchase under the November 2023 share repurchase authorization[198](index=198&type=chunk) [Item 6. Exhibits](index=55&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and the Interactive Data File (XBRL) - Exhibits filed with the report include CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, and the financial statements formatted in XBRL[201](index=201&type=chunk)[202](index=202&type=chunk)