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 a differentiated 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.

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

• B2B2C partnerships, innovation, and operational efficiencies through automation and AI have supported growth and improved customer experience.

Financial highlights

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

• Year-to-date adjusted EBITDA, excluding catastrophes, grew 15% to $1,137.9M; adjusted EPS, excluding catastrophes, up 21%.

• 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.

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

Outlook and guidance

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

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

• For 2025, acceleration in Global Lifestyle growth expected, with investments in 2024 sunsetting and new client launches contributing to revenue and EBITDA.

• Auto business expected to improve in 2025 due to rate increases and stabilizing inflation; incremental investments planned for new programs.

• Management expects sufficient liquidity for the next 12 months, including debt service and dividends.