Assurant (AIZ) Q3 2024 earnings summary

Executive summary

• Year-to-date, adjusted EBITDA increased 15% to $1,137.9M and adjusted EPS grew 21%, both excluding catastrophes, driven by strong Global Housing and Connected Living performance, despite incremental investments and FX headwinds.

• Outperformance versus the broader P&C industry attributed to the unique Housing and Lifestyle business model and multi-year transformation focusing on specialized, capital-efficient markets.

• 2024 outlook raised for low double-digit adjusted EBITDA growth and mid- to high-teens adjusted EPS growth, both excluding catastrophes.

• Net income for Q3 2024 decreased 30% year-over-year to $133.8M, mainly due to higher catastrophe losses in Global Housing, partially offset by top-line growth in Homeowners.

• Maintained a strong capital position, returning $295M to shareholders and generating $556M in cash year-to-date.

Financial highlights

• Q3 2024 adjusted EBITDA, excluding catastrophes, rose 8% year-over-year to $385M; adjusted EPS, excluding catastrophes, up 9% to $5.08.

• Q3 2024 GAAP net income fell 30% year-over-year to $133.8M; net income per diluted share down 28% to $2.55.

• Net earned premiums, fees, and other income from Global Lifestyle and Global Housing grew 7% to $2.85B in Q3.

• Holding company liquidity at $636M as of September 30, 2024; $138M returned to shareholders in Q3 via repurchases and dividends.

• Operating cash flow for the nine months was $1.23B, up from $775.5M in the prior year period.

Outlook and guidance

• Full-year 2024 adjusted EBITDA expected to grow low double digits and adjusted EPS mid to high teens, both excluding catastrophes.

• Global Housing anticipated to deliver strong growth, with modest growth in Global Lifestyle as investments in Connected Living continue.

• Hurricane Milton in Q4 2024 is expected to result in pre-tax losses of $75M–$110M, below the reinsurance retention threshold.

• Reinsurance premiums for 2024 are estimated at $191.4M, down from $207.2M in 2023 due to improved market conditions.

• Capital deployment to focus on maintaining strong financials, supporting growth, and returning capital to shareholders.