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]