Assurant (AIZ) Q2 2024 earnings summary

Executive summary

• First half 2024 results showed strong outperformance in Global Housing and momentum in Connected Living, leading to increased full-year growth expectations and a raised 2024 outlook.

• Adjusted EBITDA excluding catastrophes grew 10% year-over-year to $369.1M; adjusted EPS rose 17% to $4.77, and net income increased 21% to $188.7M in Q2 2024.

• New partnerships and contract renewals, including with T-Mobile, Spectrum Mobile, Telstra, and Chase, drove subscriber and client growth.

• Global Automotive earnings pressured by inflation and elevated GAP product losses, but risk mitigation and rate actions are underway.

• Global Housing earnings up nearly 45% year-to-date, with strong policy growth and operational efficiencies.

Financial highlights

• Q2 2024 adjusted EBITDA (excluding catastrophes) rose 10% year-over-year to $369M; adjusted EPS (excluding catastrophes) up 17% to $4.77.

• Q2 2024 net income: $188.7M (up 21% YoY); Q2 2024 revenues: $2.92B (up 7% YoY); net investment income increased 10% to $124.7M.

• Holding company liquidity stood at $735M as of June 30, 2024.

• $80M returned to shareholders in Q2, including $40M in share repurchases; $100M in share repurchases completed year-to-date.

• $395M in segment dividends upstreamed in the first half.

Outlook and guidance

• Full-year adjusted EBITDA expected to grow high single digits; adjusted EPS to increase low double digits, both excluding catastrophes.

• Global Housing to lead enterprise growth in 2024; modest growth expected in Global Lifestyle, with continued pressure in Global Automotive.

• Share repurchases expected at the high end of $200M-$300M range for 2024; $575M remains under current repurchase authorization.

• Hurricane Beryl expected to result in $30M-$50M in Q3 catastrophe losses.

• Segment dividends projected at approximately two-thirds of business segment adjusted EBITDA.