Financial Data and Key Metrics Changes - Revenue increased 14% year-over-year to nearly $2.1 billion, surpassing the $2 billion mark [5][22] - Gross profit margin increased 150 basis points to a record 55% [5][23] - Net income grew 9% to $255 million [5][23] - Adjusted EBITDA grew 25% to $553 million, with an adjusted EBITDA margin expansion of more than 200 basis points to 26% [6][23] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) revenue grew 4%, with a 3% member growth in the channel [22][10] - Non-warranty and other revenue grew 66%, driven by the success of the new HVAC and Moen programs [22] - The new HVAC program revenue grew 48% to $128 million [7][13] Market Data and Key Metrics Changes - Existing home sales volumes remain constrained near historic lows, impacting the ability to sell home warranties [9] - Inventory increased, with average supply exceeding four months for the first time in five years [9] - Over 60% of homes sold below their original list price, the highest level since 2019 [9] Company Strategy and Development Direction - The company aims to grow and retain home warranty members, with expectations for ending member count to grow in 2026 [5][15] - The long-term Adjusted EBITDA margin target has been raised from the low 20% range to the mid-20% range [30] - The company is focusing on scaling non-warranty revenue streams and optimizing the integration of the 2-10 acquisition [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy and team, highlighting the importance of member growth and cash generation [32] - The outlook for 2026 includes revenue growth in the range of $2.155 billion to $2.195 billion, with strong gross margin levels maintained [25][26] - Management anticipates a modest headwind in renewal member count due to lower first-year real estate units over the past several years, but expects renewals to become a tailwind beginning later in 2027 [16] Other Important Information - The company generated record free cash flow of $390 million, reflecting the strength and capital-light nature of the business [24] - The share repurchase program has been a significant driver of shareholder value, with $720 million used to repurchase approximately 17 million shares since 2021 [25] Q&A Session Summary Question: Pricing growth and promotional strategies - Management confirmed that the pricing strategy remains unchanged, with no increase in discounting days for the promotional pricing program [36][37] - Renewal rates have been strong, and the transition to the renewal book is expected to balance overall revenue [39] Question: Real estate channel performance and market share - Management anticipates slight growth in existing home sales, modeling around 3% to 4% [41] - The company maintains about one-third market share in the real estate side of the business [41] Question: SG&A expenses and marketing costs - SG&A expenses are expected to remain flat year-over-year, with efficiencies gained in sales and marketing [44][45] Question: Appliance upgrade pilot and revenue opportunity - The appliance upgrade pilot is expected to launch later in the year, with confidence in its potential revenue opportunity [47][49] Question: Real estate market assumptions and competition - Management expects a modest increase in existing home sales and is confident in their competitive position despite new entrants like Assurant [60][62]

Financial Data and Key Metrics Changes - Revenue increased 14% year-over-year to nearly $2.1 billion, surpassing the $2 billion mark [4][21] - Gross profit margin increased 150 basis points to a record 55% [4][22] - Net income grew 9% to $255 million [4][22] - Adjusted EBITDA grew 25% to $553 million, with an adjusted EBITDA margin expanding more than 200 basis points to 26% [5][22] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) revenue grew 4%, with a 3% member growth in the channel [21][9] - First-year real estate revenue grew 13% due to the addition of 2-10 [21] - Non-warranty and other revenue grew 66%, driven by the success of the new HVAC and Moen programs [21] - The new HVAC program revenue grew 48% to $128 million [6][12] Market Data and Key Metrics Changes - Existing home sales volumes remain constrained near historic lows, impacting the ability to sell home warranties [8] - Inventory increased, with average supply exceeding four months for the first time in five years [8] - Over 60% of homes sold below their original list price, the highest level since 2019 [8] Company Strategy and Development Direction - The company aims to grow and retain home warranty members, with expectations for ending member count to grow in 2026 [4][14] - The long-term Adjusted EBITDA margin target has been raised to the mid-20% range [29] - The company is focusing on scaling non-warranty revenue streams and optimizing the integration of the 2-10 acquisition [5][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy and team, highlighting the importance of member growth and cash generation [31] - The company anticipates modest growth in existing home sales and expects to maintain strong renewal rates [41][60] - Management is optimistic about the potential of the new appliance upgrade program, although it is still in the pilot stage [47][49] Other Important Information - The company generated record free cash flow of $390 million, reflecting the strength and capital-light nature of the business [23] - Share repurchases totaled $280 million, with plans to complete the current authorization ahead of schedule [5][24] Q&A Session Summary Question: How should pricing growth be viewed with promotional pricing strategies? - Management indicated that the pricing strategy remains unchanged, with no increase in discounting days, but promotional pricing will be tested in the real estate channel [35][37] Question: What are the expectations for existing home sales and attach rates for 2026? - Management anticipates slight growth in existing home sales, modeling a 3% to 4% increase, with attach rates remaining around one-third of the real estate side of the business [41][60] Question: How will SG&A expenses be managed in 2026? - Management expects SG&A expenses to remain flat year-over-year, citing efficiencies gained in marketing and sales [44][45] Question: What is the outlook for the appliance upgrade pilot? - The pilot is expected to launch later in the year, with management optimistic about its revenue potential compared to HVAC [47][49] Question: How does the company view the impact of Assurant entering the home warranty market? - Management believes that Assurant's entry could expand the category, benefiting all players, while emphasizing the company's long-standing relationships and comprehensive service offerings [60][62]

Financial Data and Key Metrics Changes - Revenue increased 14% year-over-year to nearly $2.1 billion, surpassing the $2 billion mark [4][20] - Gross profit margin increased 150 basis points to a record 55% [4][21] - Net income grew 9% to $255 million [4][22] - Adjusted EBITDA grew 25% to $553 million, with an adjusted EBITDA margin expanding more than 200 basis points to 26% [4][22] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) revenue grew 4%, while first-year real estate revenue grew 13% due to the addition of 2-10 [20] - Non-warranty and other revenue grew 66%, driven by the success of the new HVAC and Moen programs [20] - The new HVAC program revenue grew 48% to $128 million [6][13] Market Data and Key Metrics Changes - Existing home sales volumes remain constrained near historic lows, impacting the ability to sell home warranties [9] - The market is shifting towards a better balance between buyers and sellers, with inventory exceeding four months for the first time in five years [9] - Over 60% of homes sold below their original list price, the highest level since 2019 [9] Company Strategy and Development Direction - The company aims to grow and retain home warranty members, with expectations for ending member count to grow in 2026 [4][14] - The long-term adjusted EBITDA margin target has been raised, reflecting improved efficiencies and cost management [4][28] - The company is focusing on scaling non-warranty revenue streams and optimizing the integration of the 2-10 acquisition [6][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy and team, highlighting the importance of member growth and cash generation [31] - The company anticipates modest growth in existing home sales and expects to maintain strong gross margin levels in 2026 [24][26] - Management noted that tariffs are not expected to significantly impact operations, with a focus on maintaining low single-digit cost inflation [78][80] Other Important Information - The company generated record free cash flow of $390 million, reflecting the strength of its capital-light business model [23] - Share repurchase program has returned significant capital to shareholders, with $720 million used to repurchase approximately 17 million shares since 2021 [24] Q&A Session Summary Question: Pricing growth and its impact on renewal channel - Management confirmed that the pricing strategy remains unchanged, with no increase in discounting days for promotional pricing [35][36] - Renewal rates have been strong, indicating effective transition from promotional pricing to renewals [38] Question: Real estate channel attach rates and market share - Management indicated that existing home sales are expected to grow modestly by 3% to 4%, with attach rates remaining around one-third of the real estate business [40][41] Question: SG&A expenses and marketing costs - Management expects SG&A expenses to remain flat year-over-year, with efficiencies gained in sales and marketing [44][45] Question: Appliance upgrade pilot and revenue opportunity - The appliance upgrade pilot is expected to launch later in the year, with management optimistic about its revenue potential compared to HVAC [46][48] Question: Real estate market outlook - Management anticipates a modest increase in existing home sales, with promotional pricing expected to drive unit sales [59][60] Question: Claims cost inflation and tariffs - Management expects low single-digit claims cost inflation and believes they are well-positioned to manage tariff impacts [78][80]

Financial Data and Key Metrics Changes - In 2025, the company achieved 11% growth in adjusted EBITDA and 12% growth in adjusted earnings per share, both excluding catastrophes. Including catastrophes, adjusted EBITDA and adjusted EPS grew 16% and 19% respectively [4][6] - Adjusted EPS, excluding catastrophes, reached $22.81 per share, reflecting a high teens compound annual growth rate since 2020 [6] - The company generated a total shareholder return of 93% over the past five years [6] Business Line Data and Key Metrics Changes - Global Lifestyle saw mid-single-digit adjusted EBITDA growth, driven by Connected Living and Global Automotive [7] - In Connected Living, adjusted EBITDA grew mid-single digits, with nearly 2 million new protected devices added over the past year, totaling over 66 million devices globally [7][8] - Global Housing's adjusted EBITDA grew double digits, surpassing $1 billion, with a strong underlying combined ratio of 80% [10][11] Market Data and Key Metrics Changes - The company reported a 5% increase in enforced policies year-over-year in the lender-placed homeowners market, driven by a hardening voluntary homeowners market [10] - In renters, policies increased by 15%, supported by new portfolio onboarding [11] Company Strategy and Development Direction - The company is focused on investing in innovation across its lifestyle and housing businesses to drive long-term value creation [4] - The entry into the home warranty market is seen as a path to market leadership, leveraging existing capabilities and partnerships [13][14] - The company aims to expand its market position in 2026, with expectations of high single-digit earnings growth in Global Lifestyle and solid underlying growth in Global Housing [15][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory heading into 2026, with expectations for continued strong performance in both Global Lifestyle and Global Housing [17][22] - The company anticipates mid to high single-digit growth in adjusted EBITDA and earnings per share for 2026, excluding prior-year reserve development [22] Other Important Information - The company returned $138 million to shareholders in 2025, including $94 million in share repurchases and $44 million in dividends [20] - The company completed four small acquisitions in 2025 to enhance its products and capabilities [21] Q&A Session Summary Question: Can you help us unpack the Connected Living growth in the context of the guidance? - Management noted that while premium growth accelerated, investments and new client programs are offsetting some of that growth [27][30] Question: How do you feel about the reserve confidence in housing? - Management expressed confidence in the reserve position and noted strong underlying growth in housing [31][33] Question: What are the main competitors in the home warranty channel? - Management indicated that the market is fragmented with many players, presenting significant growth opportunities [100] Question: What is the expected investment for the home warranty business in 2026? - Management indicated an expected investment of $15 million-$20 million for the home warranty business in 2026 [42] Question: How is AI being incorporated into the business? - Management highlighted the use of AI to improve customer experience, operational efficiency, and product personalization [58][59] Question: What is the outlook for share repurchases? - Management indicated a strong capital position and plans for share repurchases in the range of $250 million-$350 million for 2026 [116]

Financial Data and Key Metrics Changes - In 2025, the company achieved 11% growth in adjusted EBITDA and 12% growth in adjusted earnings per share, both excluding catastrophes. Including catastrophes, adjusted EBITDA and adjusted EPS grew 16% and 19% respectively [4][6] - Adjusted EPS, excluding catastrophes, reached $22.81 per share, reflecting a high teens compound annual growth rate [6] - The company generated a total shareholder return of 93% over the past five years [6] Business Line Data and Key Metrics Changes - Global Lifestyle saw mid-single-digit adjusted EBITDA growth, driven by Connected Living and Global Automotive [7] - In Connected Living, adjusted EBITDA grew mid-single digits, with nearly 2 million new protected devices added over the past year, totaling over 66 million devices globally [7][8] - Global Automotive also delivered mid-single-digit earnings growth, protecting 57 million vehicles, an increase of nearly 2 million from the previous year [9][10] - Global Housing's adjusted EBITDA grew double digits, surpassing $1 billion, with a strong underlying combined ratio of 80% [10][11] Market Data and Key Metrics Changes - The company reported a 5% increase in enforced policies year-over-year in the lender-placed homeowners market, driven by a hardening voluntary homeowners market [10][11] - In renters, policies increased by 15%, supported by onboarding a new portfolio [11] Company Strategy and Development Direction - The company is focused on investing in innovation across lifestyle and housing businesses to drive long-term value creation [4][6] - The entry into the home warranty market is seen as a path to market leadership, leveraging existing capabilities and partnerships [13][14] - The company aims to expand its market position through technology-enabled services and strategic partnerships [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2026, expecting high single-digit earnings growth in Global Lifestyle and solid underlying growth in Global Housing [15][22] - The company anticipates mid to high single-digit growth in both adjusted EBITDA and earnings per share, excluding catastrophes, for 2026 [22][24] - Management highlighted the importance of maintaining a strong capital position to support growth and shareholder returns [24][116] Other Important Information - The company returned $138 million to shareholders in 2025, including $94 million in share repurchases and $44 million in dividends [20] - The company completed four small acquisitions in 2025 to enhance its products and capabilities [21] Q&A Session Summary Question: Clarification on Connected Living growth and guidance - Management acknowledged the growth in written premiums but noted that earnings growth may be impacted by investments and the scaling of new client programs [27][30] Question: Reserve confidence in housing - Management expressed confidence in the reserve position and noted strong underlying growth in housing, independent of prior-year reserve development [31][33] Question: Home warranty business investments - Management indicated an expected investment of $15 million-$20 million in home warranty for 2026, with excitement about the growth potential [42] Question: Competitors in home warranty - Management noted the market is fragmented with several players, presenting opportunities for growth and market share expansion [100] Question: Impact of restructuring costs - Management explained that restructuring costs were related to optimizing real estate and operational efficiencies, setting the stage for future investments [104][105]

Financial Data and Key Metrics Changes - In 2025, Assurant achieved 11% growth in adjusted EBITDA and 12% growth in adjusted earnings per share, both excluding catastrophes. Including catastrophes, adjusted EBITDA and adjusted EPS grew 16% and 19% respectively [4][5] - Adjusted EPS, excluding catastrophes, reached $22.81 per share, reflecting a high teens compound annual growth rate since 2020 [5] - The company generated a total shareholder return of 93% over the past five years [5] Business Line Data and Key Metrics Changes - Global Lifestyle saw mid-single-digit adjusted EBITDA growth, driven by Connected Living and Global Automotive [6] - In Connected Living, adjusted EBITDA grew mid-single digits, with nearly 2 million new protected devices added over the past year, totaling over 66 million devices globally [6][7] - Global Automotive also delivered mid-single-digit earnings growth, now protecting 57 million vehicles, an increase of nearly 2 million from the previous year [9][10] - Global Housing's adjusted EBITDA grew double digits, surpassing $1 billion, with a strong underlying combined ratio of 80% [10][11] Market Data and Key Metrics Changes - The lender-placed business in homeowners insurance saw a 5% increase in enforced policies year-over-year, driven by a hardening voluntary homeowners market [10][11] - In renters insurance, policies increased by 15%, supported by new portfolio onboarding [11] Company Strategy and Development Direction - Assurant is focused on expanding its market position through innovation and strategic partnerships, particularly in the home warranty market [12][15] - The company aims to leverage technology, including AI, to enhance customer experience and operational efficiency across all business lines [58][59] - Assurant plans to continue investing in core markets and expanding offerings with existing partners to drive long-term value creation [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory heading into 2026, expecting high single-digit earnings growth in Global Lifestyle and solid underlying growth in Global Housing [15][23] - The company anticipates mid to high single-digit growth in adjusted EBITDA and earnings per share for 2026, excluding prior-year reserve development [22][23] Other Important Information - Assurant returned $138 million to shareholders in Q4 2025, including $94 million in share repurchases and $44 million in dividends, with total repurchases for 2025 reaching $300 million [21][22] - The company completed four small acquisitions in 2025 to enhance its product capabilities, including a reverse logistics division acquisition [22] Q&A Session Summary Question: Clarification on Connected Living growth and guidance - Management acknowledged the acceleration in written premium growth in Connected Living but noted that investments and new client programs are impacting earnings growth [29][30] Question: Reserve confidence in housing - Management expressed confidence in the reserve position for housing, indicating strong underlying growth despite fluctuations [33][34] Question: Home warranty business investments - Management indicated plans for $15 million-$20 million in incremental investments for the home warranty business in 2026, with excitement about the growth potential [43][44] Question: Competitors in home warranty - Management noted that the home warranty market is fragmented, with opportunities to grow the category beyond just taking market share [100] Question: Impact of state regulations on housing - Management stated that regular rate filings and regulatory scrutiny position the company well against potential profit caps [74][76] Question: AI integration in business - Management highlighted the use of AI across various departments to enhance customer experience and operational efficiency [58][59]