Assurant (AIZ) Q1 2025 earnings summary

Executive summary

• Achieved 14% growth in adjusted EBITDA and 16% growth in adjusted EPS, both excluding catastrophes, supported by a diversified global operating model and robust capital position.

• Net income fell 38% year-over-year to $146.6M, mainly due to higher catastrophe losses in Global Housing, partially offset by growth in both segments excluding catastrophes.

• On track for a ninth consecutive year of earnings growth, driven by operational excellence, scaling partnerships, and continued investment in new programs and clients.

• Strong capital position with $501M in holding company liquidity and $103M returned to shareholders in Q1 2025.

• 2025 earnings growth outlook reaffirmed, citing robust capital position and continued investment in people, technology, and solutions.

Financial highlights

• Q1 2025 adjusted EBITDA (excluding catastrophes) was $439M, up 14% year-over-year; adjusted EPS (excluding catastrophes) was $5.79, up 16%.

• GAAP net income fell 38% to $146.6M, mainly due to $143.8M higher catastrophe losses in Global Housing.

• Global Housing adjusted EBITDA (excluding catastrophes) increased 31% to $269M; Global Lifestyle adjusted EBITDA declined 5% to $197.8M, but up modestly on a constant currency basis excluding a prior year one-time benefit.

• Net earned premiums, fees, and other income grew 7% to $2.96B, with Global Housing revenues up 15% and Global Lifestyle up 5%.

• Returned $103M to shareholders in Q1 2025 via $62M in share repurchases and $41M in dividends.

Outlook and guidance

• Reaffirmed 2025 outlook for modest growth in adjusted EBITDA and adjusted EPS, both excluding catastrophes.

• Housing segment outlook increased, reflecting strong Q1 results and continued lender-placed policy growth; Lifestyle segment growth expected to be muted by FX and incremental investments.

• 2025 catastrophe reinsurance program placed, with expected full-year catastrophe load of $300M and premiums estimated at $225M.

• Share repurchase guidance for 2025 remains $200M–$300M, subject to M&A and market conditions.

• Management expects sufficient liquidity for the next twelve months, with holding company liquidity at $501M, well above the $225M target.