Delivered Strong Earnings Growth in Global
Lifestyle and Improved Performance in Global Housing
Sustained Strong Balance Sheet and Capital
Return
Assurant, Inc. (NYSE: AIZ), a leading global business services
company that supports, protects and connects major consumer
purchases, today reported results for the fourth quarter and
full-year ended December 31, 2022.
“In 2022, we continued to execute on our vision to be the
leading global business services provider supporting the
advancement of the connected world. We delivered high single-digit
growth in Global Lifestyle, while taking decisive actions in Global
Housing to simplify our business and improve financial results,”
said Assurant President and CEO Keith Demmings. “I am especially
pleased with our strong fourth quarter segment results, which
demonstrate our focus on driving outperformance over the long term.
We also acted with urgency to mitigate the impact of global
macroeconomic headwinds by streamlining our real estate footprint
and increasing efficiency in our organizational structure, all
while strengthening the business for the future through targeted
investments in key product offerings and capabilities to sustain
our competitive advantage.”
“For 2023, we expect our business to grow Adjusted EBITDA by low
single-digits, excluding catastrophe losses, as we realize the
benefits from our Global Housing transformation and continue to
expand market share within Global Lifestyle. While we expect
macroeconomic headwinds to persist near-term, we remain
well-positioned to drive long-term shareholder value,” Demmings
added.
Note: The metrics included within the company’s outlook are
non-GAAP financial measures and the company believes that it
cannot, without unreasonable efforts, forecast certain information
needed to reconcile to the GAAP measures, the probable significance
of which cannot be determined.
(Unaudited)
Q4'22
Q4'21
Change
12M'22
12M'21
Change
$ in millions, except per share
data
GAAP net income
68.1
124.0
(45)%
276.6
602.9
(54)%
Adjusted EBITDA1
274.2
252.5
9%
956.2
965.9
(1)%
Adjusted EBITDA, ex. reportable
catastrophes2
296.3
257.0
15%
1,128.3
1,121.5
1%
GAAP net income per diluted share
1.27
2.15
(41)%
5.05
10.03
(50)%
Adjusted earnings per diluted share3
3.23
2.81
15%
11.13
10.24
9%
Adjusted earnings, ex. reportable
catastrophes, per diluted share4
3.56
2.87
24%
13.61
12.28
11%
Note: Effective January 1, 2023, the company realigned the
composition of its reportable segments to correspond with changes
to its Global Housing operating structure. As a result, the Global
Housing segment is now comprised of two key lines of business,
Homeowners, and Renters and Other. Certain specialty products,
mainly the Leased and Financed business, previously included in the
Global Housing segment will now be reported in Global Lifestyle to
better align with the company’s go-to-market strategy. This
realignment has no impact on the company's consolidated results and
will be reflected beginning with first quarter 2023 reporting. More
information on these changes and a full reconciliation of certain
historical revised key measures of performance and metrics can be
found in the fourth quarter 2022 Financial Supplement located on
Assurant’s Investor Relations website:
https://ir.assurant.com/investor/default.aspx.
References to net income, including to net income per diluted
share, throughout this press release refer to net income from
continuing operations. Some of the metrics throughout this press
release are non-GAAP measures of performance. A full reconciliation
of each non-GAAP measure to the most comparable GAAP measure can be
found in the Non-GAAP Financial Measures section.
Full-Year 2022 Summary
- GAAP net income decreased 54 percent to $276.6 million versus
prior year period, while net income per diluted share decreased 50
percent to $5.05
- Adjusted EBITDA, excluding reportable catastrophes2, increased
1 percent to $1,128.3 million, or 3 percent on a constant currency
basis5
- Adjusted earnings, excluding reportable catastrophes, per
diluted share4, increased 11 percent to $13.61
- Holding company liquidity was $446 million
- Share repurchases and common stock dividends totaled $718
million, including the return of net proceeds from the sale of
Global Preneed
2023 Outlook
The company expects:
- Adjusted EBITDA, excluding reportable catastrophes6, to
increase low single-digits, driven by improved performance in
Global Housing and more modest growth in Global Lifestyle.
- Adjusted earnings, excluding reportable catastrophes, per
diluted share6, growth rate to be lower than Adjusted EBITDA growth
due to increased depreciation expense and a higher effective tax
rate. Note: The metrics included within the company’s outlook are
non-GAAP financial measures and the company believes that it
cannot, without unreasonable efforts, forecast certain information
needed to reconcile to the GAAP measures, the probable significance
of which cannot be determined. More information can be found in the
Non-GAAP Financial Measures section.
Fourth Quarter and Full-Year 2022 Consolidated
Results
(Unaudited)
Q4'22
Q4'21
Change
12M'22
12M'21
Change
$ in millions
GAAP net income
68.1
124.0
(45)%
276.6
602.9
(54)%
Adjusted
EBITDA
Global Lifestyle
166.1
156.1
6%
753.4
702.1
7%
Global Housing
135.3
121.9
11%
302.0
357.1
(15)%
Corporate and Other
(27.2)
(25.5)
(7)%
(99.2)
(93.3)
(6)%
Adjusted EBITDA1
274.2
252.5
9%
956.2
965.9
(1)%
Reportable catastrophes
22.1
4.5
172.1
155.6
Adjusted EBITDA, ex.
reportable catastrophes
Global Lifestyle2
166.1
156.3
6%
752.8
702.6
7%
Global Housing2
157.4
126.2
25%
474.7
512.2
(7)%
Corporate and Other
(27.2)
(25.5)
(7)%
(99.2)
(93.3)
(6)%
Adjusted EBITDA, ex. reportable
catastrophes2
296.3
257.0
15%
1,128.3
1,121.5
1%
Note: Adjusted EBITDA of the Global Lifestyle, Global Housing
and Corporate and Other segments is the segment measure of
profitability in our GAAP financial statements and includes
reportable catastrophes. Additional details regarding key financial
metrics are included in the Financial Supplement located on
Assurant’s Investor Relations website: https://ir.assurant.com/investor/default.aspx
Fourth Quarter 2022 Consolidated Results
- GAAP net income decreased 45 percent to $68.1 million,
compared to fourth quarter 2021 of $124.0 million. The decline was
primarily due to a $41.8 million after-tax charge related to the
company’s previously announced restructuring plan, as well as net
unrealized losses from Assurant Ventures.
- GAAP net income per diluted share decreased 41
percent to $1.27 compared to fourth quarter 2021 of $2.15. The
decrease was primarily driven by the factors noted above.
- Adjusted EBITDA1 increased 9 percent compared to the
prior year period, as growth in segment earnings was partially
offset by $17.6 million of higher pre-tax reportable catastrophes.
Excluding reportable catastrophes, Adjusted EBITDA2 increased 15
percent to $296.3 million, or 19 percent on a constant currency
basis5, primarily due to improved profitability from lender-placed
insurance in Global Housing, as well as higher contributions from
Connected Living in Global Lifestyle.
- Adjusted earnings, excluding reportable catastrophes, per
diluted share4, increased 24 percent to $3.56, primarily from
higher segment earnings as noted above, and prior period share
repurchases.
- Net earned premiums, fees and other income from the
Global Lifestyle and Global Housing segments totaled $2.54 billion
compared to $2.48 billion in fourth quarter 2021, up 3 percent or 5
percent on a constant currency basis5, mainly from Global
Automotive growth within Global Lifestyle and increases in
lender-placed within Global Housing.
Full-Year 2022 Consolidated Results
- GAAP net income decreased 54 percent to $276.6 million,
compared to full-year 2021 net income of $602.9 million. The
decline was primarily driven by a net decrease in unrealized gains
to unrealized losses from Assurant Ventures, net realized losses
from sales of fixed maturity securities in 2022, and a decrease
from non-core operations.
- GAAP net income per diluted share decreased 50
percent to $5.05, compared to full-year 2021 of $10.03. The
decrease was primarily driven by the factors noted above.
- Adjusted EBITDA1 decreased 1 percent compared to the
prior year period, primarily due to $16.5 million of higher pre-tax
reportable catastrophes. Excluding reportable catastrophes,
Adjusted EBITDA2 increased 1 percent to $1,128.3 million, or 3
percent on a constant currency basis5, as growth in Global
Lifestyle was partially offset by a decline in Global Housing,
mainly from higher non-catastrophe loss experience including higher
claims severity related to inflation.
- Adjusted earnings, excluding reportable catastrophes, per
diluted share4, increased 11 percent to $13.61, mainly driven
by share repurchases, including the return of net proceeds from the
sale of Global Preneed, as well as lower tax expenses, including a
$9 million one-time benefit in first quarter 2022.
- Net earned premiums, fees and other income from the
Global Lifestyle and Global Housing segments totaled $9.95 billion
compared to $9.68 billion for the prior year period, up 3 percent,
or 4 percent on a constant currency basis5, primarily due to Global
Automotive growth within Global Lifestyle as well as lender-placed
growth within Global Housing.
Global Lifestyle
$ in millions
Q4'22
Q4'21
Change
12M'22
12M'21
Change
Adjusted EBITDA
166.1
156.1
6%
753.4
702.1
7%
Net earned premiums, fees and other
income
2,002.6
1,983.1
1%
7,936.1
7,740.1
3%
- Adjusted EBITDA increased 6 percent compared to the
fourth quarter 2021, or 12 percent on a constant currency basis5.
The increase was driven by Connected Living and higher net
investment income, partially offset by weaker performance in Asia
Pacific and Europe, including the unfavorable impact of foreign
exchange, as well as an increase in claims costs within Global
Automotive. Connected Living benefited from reduced mobile service
and repair expenses compared to the prior year period and a modest
increase in North American mobile subscribers. Full-year 2022
Adjusted EBITDA increased 7 percent compared to 2021, or 11 percent
on a constant currency basis5. The increase was driven by growth
across U.S. Connected Living and Global Automotive, partially
offset by weaker performance in Europe and Asia Pacific, including
the unfavorable impact of foreign exchange. Growth in Connected
Living reflected increased mobile subscribers in North America and
more favorable mobile loss experience. Global Automotive increased
primarily from higher investment income and favorable loss
experience in select ancillary products. For the year, segment
results included $24.1 million of income from real estate and a
$11.2 million one-time client contract benefit.
- Net earned premiums, fees and other income increased 1
percent compared to fourth quarter 2021, or 3 percent on a constant
currency basis5, compared to fourth quarter 2021, driven by strong
prior period sales in Global Automotive. Connected Living decreased
mainly from runoff mobile programs, partially offset by mobile
subscriber growth in North America. Full-year 2022 net earned
premiums, fees and other income increased 3 percent compared to
2021, or 4 percent on a constant currency basis5, primarily due to
the factors noted above. In-store mobile service and repair
contributed $148.4 million of fee income, and as previously
announced, is not expected to continue in 2023.
Global Housing
$ in millions
Q4'22
Q4'21
Change
12M'22
12M'21
Change
Adjusted EBITDA
135.3
121.9
11%
302.0
357.1
(15)%
Reportable catastrophes
22.1
4.3
172.7
155.1
Adjusted EBITDA, ex. reportable
catastrophes2
157.4
126.2
25%
474.7
512.2
(7)%
Net earned premiums, fees and other
income
544.6
493.8
10%
2,010.4
1,941.4
4%
- Adjusted EBITDA increased 11 percent compared to the
fourth quarter 2021 due to the factors described below, partially
offset by a $17.8 million increase in reportable catastrophes from
winter storms and Hurricane Nicole. Excluding reportable
catastrophes, Adjusted EBITDA2 increased 25 percent primarily due
to higher average insured values, premium rates and lender-placed
policies in-force. In addition, the segment benefited from ongoing
expense initiatives. The increase was partially offset by $14.8
million of higher non-catastrophe loss experience across all major
products and increased catastrophe reinsurance costs. Full-year
2022 Adjusted EBITDA decreased 15 percent compared to 2021
primarily driven by $17.6 million of higher pre-tax reportable
catastrophes. Excluding reportable catastrophes, Adjusted EBITDA2
decreased 7 percent due to declines in multifamily housing and
specialty products mainly from higher non-catastrophe loss
experience. Lender-placed increased modestly, as strong revenue
growth and improved profitability in fourth quarter more than
offset higher non-catastrophe loss experience throughout the year.
Global Housing results were also impacted by increased catastrophe
reinsurance costs.
- Net earned premiums, fees and other income growth
accelerated in the quarter, increasing 10 percent year-over-year,
largely from lender-placed. This was driven by higher average
insured values, premium rates and policies in-force, including
contributions from a new client onboarded in the quarter. Full-year
2022 net earned premiums, fees and other income increased 4 percent
compared to the prior year 2021, primarily due to the factors noted
above.
Corporate and Other
$ in millions
Q4'22
Q4'21
Change
12M'22
12M'21
Change
Adjusted EBITDA
(27.2)
(25.5)
(7)%
(99.2)
(93.3)
(6)%
- Adjusted EBITDA loss increased in fourth quarter 2022
compared to the prior year period, primarily driven by lower
investment income. Full-year 2022 Adjusted EBITDA loss increased
compared to the prior year 2021, primarily driven by lower
investment income and higher employee-related and third-party
expenses.
Holding Company Liquidity Position
- Holding company liquidity totaled $446 million as of
December 31, 2022, or $221 million above the company’s targeted
minimum level of $225 million. Dividends paid by operating segments
to the holding company in fourth quarter 2022 totaled $89 million.
In addition to quarterly interest and Corporate and Other expenses,
the company had $81 million of outflows primarily related to the
previously disclosed acquisitions within its commercial equipment
business. For full-year 2022, dividends paid by operating segments
to the holding company totaled $550 million.
- Share repurchases and common stock dividends totaled $51
million in fourth quarter 2022. During fourth quarter 2022,
Assurant repurchased 90 thousand shares of common stock for $13
million and paid $38 million in common stock dividends. From
January 1 through February 3, 2023, the company repurchased no
shares, with $274 million remaining under the current repurchase
authorization. For full-year 2022, share repurchases and common
stock dividends totaled $718 million. Assurant repurchased 3.3
million shares of common stock for $568 million and paid $150
million in common stock dividends.
2023 Company Outlook6
Note: The company’s 2023 outlook corresponds to the new
composition of its segments effective January 1, 2023, with no
impact on consolidated results. The metrics included within the
company’s outlook are non-GAAP financial measures and the company
believes that it cannot, without unreasonable efforts, forecast
certain information needed to reconcile to the GAAP measures, the
probable significance of which cannot be determined. More
information can be found in the Non-GAAP Financial Measures
section.
$ in millions, except per share
data
FY 2022
2023 Outlook6
Adjusted EBITDA, ex. reportable
catastrophes2
1,128.3
Low single-digit growth
Adjusted earnings, ex. reportable
catastrophes, per diluted share4
$13.61
Lower growth rate than Adjusted
EBITDA, ex. reportable catastrophes
Based on current market conditions, for full-year 2023, the
company expects:
- Adjusted EBITDA, excluding reportable catastrophes, to
increase by low single-digits, with results improving as the year
progresses, led by improved performance in Global Housing and more
modest growth in Global Lifestyle.
- Global Housing Adjusted EBITDA, excluding reportable
catastrophes, is expected to grow from revised 2022 results of
$417.4 million. Growth to be driven by improved performance in
Homeowners reflecting higher lender-placed net earned premiums
along with expense savings to be realized over the course of the
year. Higher 2023 catastrophe reinsurance program costs as well as
continued elevated non-catastrophe loss experience across all lines
of business, particularly in the first half of 2023, are expected
to impact the segment.
- Global Lifestyle Adjusted EBITDA, is expected to grow
modestly from revised 2022 results of $809.4 million. Modest growth
to be driven by Connected Living and Global Automotive, including
contributions from new and existing client programs and expense
savings realized over the course of the year. Lower contributions
from international, including the impact of continued foreign
exchange headwinds, are expected to pressure results particularly
in the first half of 2023.
- Corporate and Other Adjusted EBITDA loss is expected to
be approximately $105 million as the company continues to drive
expense leverage.
- Adjusted earnings, excluding reportable catastrophes, per
diluted share growth rate is expected to be lower than Adjusted
EBITDA, excluding reportable catastrophes growth due to higher
depreciation expense of approximately $114 million and a higher
effective tax rate of approximately 22 to 24 percent, following a
$9 million benefit in 2022. Interest expense is expected to be
approximately $110 million, in-line with 2022.
- Business segment dividends to approximate 65% of segment
Adjusted EBITDA, including reportable catastrophes, which takes
into account the previously announced restructuring plan. This is
subject to the business and investment portfolio performance, and
rating agency and regulatory capital requirements.
- Given market conditions, capital deployment priorities to focus
on maintaining a strong financial position, supporting organic
growth and paying common stock dividends, subject to Board
approval. In light of the continued uncertain macroeconomic
environment, the company will look to preserve capital deployment
flexibility near-term, and therefore, expects any share repurchases
would occur in the second half of the year. As visibility in the
broader environment improves, the company is committed to
re-evaluate overall levels and timing of capital deployment.
Earnings Conference Call
The fourth quarter and full year 2022 earnings conference call
and webcast will be held on Wednesday, February 8, 2023 at 8:00
a.m. ET. The live and archived webcast, along with supplemental
information, will be available on Assurant’s Investor Relations
website:
https://ir.assurant.com/investor/default.aspx
About Assurant
Assurant, Inc. (NYSE: AIZ) is a leading global business services
company that supports, protects and connects major consumer
purchases. A Fortune 500 company with a presence in 21 countries,
Assurant supports the advancement of the connected world by
partnering with the world’s leading brands to develop innovative
solutions and to deliver an enhanced customer experience through
mobile device solutions, extended service contracts, vehicle
protection services, renters insurance, lender-placed insurance
products and other specialty products.
Learn more at assurant.com or on Twitter @Assurant.
Safe Harbor Statement
Some of the statements in this news release and its exhibits,
including our outlook, business and financial plans and any
statements regarding the company’s anticipated future financial
performance, business prospects, growth and operating strategies
and similar matters, may constitute forward-looking statements
within the meaning of the U.S. Private Securities Litigation Reform
Act of 1995.
You can identify forward-looking statements by the use of words
such as “outlook,” “objective,” “will,” “may,” “can,”
“anticipates,” “expects,” “estimates,” “projects,” “intends,”
“plans,” “believes,” “targets,” “forecasts,” “potential,”
“approximately,” and the negative version of those words and other
words and terms with a similar meaning. Any forward-looking
statements contained in this news release or its exhibits are based
upon our historical performance and on current plans, estimates and
expectations. The inclusion of this forward-looking information
should not be regarded as a representation by us or any other
person that our future plans, estimates or expectations will be
achieved. Our actual results might differ materially from those
projected in the forward-looking statements. We undertake no
obligation to update or review any forward-looking statement,
whether as a result of new information, future events or other
developments. The following factors could cause our actual results
to differ materially from those currently estimated by management,
including those projected in the company outlook:
- the loss of significant clients, distributors or other parties
with whom we do business, or if we are unable to renew contracts
with them on favorable terms, or if those parties face financial,
reputational or regulatory issues;
- significant competitive pressures, changes in customer
preferences and disruption;
- the failure to execute our strategy, including through the
continuing service of key executives, senior leaders,
highly-skilled personnel and a high-performing workforce;
- the failure to find suitable acquisitions at attractive prices,
integrate acquired businesses or divest of non-strategic businesses
effectively or identify new areas for organic growth;
- our inability to recover should we experience a business
continuity event;
- the failure to manage vendors and other third parties on whom
we rely to conduct business and provide services to our
clients;
- risks related to our international operations;
- declines in the value and availability of mobile devices, and
export compliance or other risks in our mobile business;
- our inability to develop and maintain distribution sources or
attract and retain sales representatives and executives with key
client relationships;
- risks associated with joint ventures, franchises and
investments in which we share ownership and management with third
parties;
- the impact of catastrophe and non-catastrophe losses, including
as a result of the current inflationary environment and climate
change;
- negative publicity relating to our business, industry or
clients;
- the impact of general economic, financial market and political
conditions and conditions in the markets in which we operate,
including the current inflationary environment;
- the adequacy of reserves established for claims and our
inability to accurately predict and price for claims and other
costs;
- a decline in financial strength ratings of our insurance
subsidiaries or in our corporate senior debt ratings;
- fluctuations in exchange rates, including in the current
environment;
- an impairment of goodwill or other intangible assets;
- the failure to maintain effective internal control over
financial reporting;
- unfavorable conditions in the capital and credit markets;
- a decrease in the value of our investment portfolio, including
due to market, credit and liquidity risks, and changes in interest
rates;
- an impairment in the value of our deferred tax assets;
- the unavailability or inadequacy of reinsurance coverage and
the credit risk of reinsurers, including those to whom we have sold
business through reinsurance;
- the credit risk of some of our agents, third-party
administrators and clients;
- the inability of our subsidiaries to pay sufficient dividends
to the holding company and limitations on our ability to declare
and pay dividends or repurchase shares;
- limitations in the analytical models we use to assist in our
decision-making;
- the failure to effectively maintain and modernize our
information technology systems and infrastructure, or the failure
to integrate those of acquired businesses;
- breaches of our information technology systems or those of
third parties with whom we do business, or the failure to protect
the security of data in such systems, including due to cyberattacks
and as a result of working remotely;
- the costs of complying with, or the failure to comply with,
extensive laws and regulations to which we are subject, including
those related to privacy, data security, data protection and
tax;
- the impact of litigation and regulatory actions;
- reductions or deferrals in the insurance premiums we
charge;
- changes in insurance, tax and other regulations, including the
Inflation Reduction Act of 2022;
- volatility in our common stock price and trading volume;
and
- employee misconduct.
For additional information on factors that could affect our
actual results, please refer to the factors identified in the
reports we file with the U.S. Securities and Exchange Commission,
including the risk factors identified in our most recent Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q.
Non-GAAP Financial Measures
Assurant uses the following non-GAAP financial measures to
analyze the company’s operating performance. Assurant’s non-GAAP
financial measures should not be considered in isolation or as a
substitute for GAAP financial measures. Because Assurant’s
calculation of these measures may differ from similar measures used
by other companies, investors should be careful when comparing
Assurant’s non-GAAP financial measures to those of other
companies.
(1)
Assurant uses Adjusted EBITDA as an important measure of the
company’s operating performance. Assurant defines Adjusted EBITDA
as net income from continuing operations, excluding net realized
losses (gains) on investments and fair value changes to equity
securities, COVID-19 direct and incremental expenses, loss on
extinguishment of debt, non-core operations, net income (loss)
attributable to non-controlling interests, interest expense,
provision (benefit) for income taxes, depreciation expense,
amortization of purchased intangible assets, restructuring costs
related to strategic exit activities (outside of normal periodic
restructuring and cost management activities), as well as other
highly variable or unusual items. The company believes this metric
provides investors with an important measure of the company’s
operating performance because it excludes items that do not
represent the ongoing operations of the company, and therefore (i)
enhances management’s and investors’ ability to analyze the ongoing
operations of its businesses and (ii) facilitates comparisons of
its operating performance over multiple periods, including because
the amortization expense associated with purchased intangible
assets may fluctuate from period to period based on the timing,
size, nature and number of acquisitions. Although the company
excludes amortization of purchased intangible assets from Adjusted
EBITDA, revenue generated from such intangible assets is included
within the revenue in determining Adjusted EBITDA. The comparable
GAAP measure is net income from continuing operations. See Note 2
below for a full reconciliation.
(2)
Adjusted EBITDA, Excluding Reportable Catastrophes: Assurant
uses Adjusted EBITDA (defined above), excluding reportable
catastrophes (which represents individual catastrophic events that
generate losses in excess of $5.0 million, pre-tax, net of
reinsurance and client profit sharing adjustments and including
reinstatement and other premiums), as another important measure of
the company’s performance. The company believes this metric
provides investors with an important measure of the company’s
performance for the reasons noted above, and because it excludes
reportable catastrophes, which can be volatile. The comparable GAAP
measure is net income from continuing operations.
(UNAUDITED)
4Q
4Q
12 Months
12 Months
($ in millions)
2022
2021
2022
2021
GAAP net income from continuing
operations
$
68.1
$
124.0
$
276.6
$
602.9
Less:
Interest expense
27.9
27.1
108.3
111.8
Provision for income taxes
28.2
34.6
73.3
168.4
Depreciation expense
21.6
21.4
86.3
73.8
Amortization of purchased intangible
assets
17.8
15.8
69.7
65.8
Adjustments, pre-tax:
Net realized losses (gains) on investments
and fair value changes to equity securities
13.5
(5.0
)
179.7
(128.2
)
COVID-19 direct and incremental
expenses
1.1
2.8
4.7
10.0
Loss on extinguishment of debt
—
—
0.9
20.7
Non-core operations
34.4
11.8
79.5
14.4
Restructuring costs
52.9
6.8
53.1
11.8
Other adjustments(1)
8.7
13.2
24.1
14.5
Adjusted EBITDA
274.2
252.5
956.2
965.9
Reportable catastrophes
22.1
4.5
172.1
155.6
Adjusted EBITDA, excluding reportable
catastrophes
$
296.3
$
257.0
$
1,128.3
$
1,121.5
(1)
Additional details about the components of Other adjustments
and other key financial metrics throughout this press release are
included in the Financial Supplement located on Assurant’s Investor
Relations website: https://ir.assurant.com/investor/default.aspx
(UNAUDITED)
4Q 2022
4Q 2021
Global Lifestyle
Global Housing
Global Lifestyle
Global Housing
($ in millions)
Adjusted EBITDA
$
166.1
$
135.3
$
156.1
$
121.9
Reportable catastrophes
—
22.1
0.2
4.3
Adjusted EBITDA, excluding reportable
catastrophes
$
166.1
$
157.4
$
156.3
$
126.2
(UNAUDITED)
12 Months 2022
12 Months 2021
Global Lifestyle
Global Housing
Global Lifestyle
Global Housing
($ in millions)
Adjusted EBITDA
$
753.4
$
302.0
$
702.1
$
357.1
Reportable catastrophes
(0.6
)
172.7
0.5
155.1
Adjusted EBITDA, excluding reportable
catastrophes
$
752.8
$
474.7
$
702.6
$
512.2
(3)
Adjusted Earnings per Diluted Share: Assurant uses Adjusted
earnings per diluted share as an important measure of the company’s
stockholder value. Assurant defines Adjusted earnings per diluted
share as net income from continuing operations, excluding net
realized losses (gains) on investments and fair value changes to
equity securities, amortization of purchased intangible assets,
COVID-19 direct and incremental expenses, loss on extinguishment of
debt, non-core operations, net income (loss) attributable to
non-controlling interests, restructuring costs related to strategic
exit activities (outside of normal periodic restructuring and cost
management activities), as well as other highly variable or unusual
items, plus any dilutive preferred stock dividends, divided by the
weighted average diluted shares outstanding. The company believes
this metric provides investors with an important measure of
stockholder value because it excludes items that do not represent
the ongoing operations of the company, and therefore (i) enhances
management’s and investors’ ability to analyze the ongoing
operations of its businesses and (ii) facilitates comparisons of
its operating performance over multiple periods, including because
the amortization expense associated with purchased intangible
assets may fluctuate from period to period based on the timing,
size, nature and number of acquisitions. Although the company
excludes amortization of purchased intangible assets from Adjusted
earnings, revenue generated from such intangible assets is included
within the revenue in determining Adjusted earnings. The comparable
GAAP measure is net income from continuing operations per diluted
share, defined as net income from continuing operations plus any
dilutive preferred stock dividends less net income from
non-controlling interests, divided by the weighted average diluted
shares outstanding. See Note 4 below for a full reconciliation.
(4)
Adjusted Earnings, Excluding Reportable Catastrophes, per
Diluted Share: Assurant uses Adjusted earnings, excluding
reportable catastrophes, per diluted share (each as defined above)
as another important measure of the company's stockholder value.
The company believes this metric provides investors with an
important measure of stockholder value for the reasons noted above,
and because it excludes reportable catastrophes, which can be
volatile. The comparable GAAP measure is net income from continuing
operations per diluted share (defined above).
(UNAUDITED)
4Q
4Q
12 Months
12 Months
($ in millions)
2022
2021
2022
2021
GAAP net income from continuing
operations
$
68.1
$
124.0
$
276.6
$
602.9
Adjustments, pre-tax:
Net realized losses (gains) on investments
and fair value changes to equity securities
13.5
(5.0
)
179.7
(128.2
)
Amortization of purchased intangible
assets
17.8
15.8
69.7
65.8
COVID-19 direct and incremental
expenses
1.1
2.8
4.7
10.0
Loss on extinguishment of debt
—
—
0.9
20.7
Non-core operations
34.4
11.8
79.5
14.4
Restructuring costs
52.9
8.1
53.1
13.1
Other adjustments
8.7
14.2
24.1
18.2
Benefit for income taxes
(22.7
)
(9.6
)
(78.8
)
(1.3
)
Preferred stock dividends
—
—
—
(4.7
)
Adjusted earnings
173.8
162.1
609.5
610.9
Reportable catastrophes, pre-tax
22.1
4.5
172.1
155.6
Tax impact of reportable catastrophes
(4.7
)
(0.9
)
(36.2
)
(32.7
)
Adjusted earnings, excluding reportable
catastrophes
$
191.2
$
165.7
$
745.4
$
733.8
(UNAUDITED)
4Q
4Q
12 Months
12 Months
2022
2021
2022
2021
GAAP net income from continuing
operations per diluted share(1)
$
1.27
$
2.15
$
5.05
$
10.03
Adjustments, pre-tax:
Net realized losses (gains) on investments
and fair value changes to equity securities
0.25
(0.09
)
3.28
(2.14
)
Amortization of purchased intangible
assets
0.33
0.28
1.27
1.10
COVID-19 direct and incremental
expenses
0.02
0.05
0.08
0.17
Loss on extinguishment of debt
—
—
0.02
0.34
Non-core operations
0.63
0.21
1.45
0.23
Restructuring costs
0.99
0.14
0.97
0.22
Other adjustments
0.16
0.24
0.45
0.31
Benefit for income taxes
(0.42
)
(0.17
)
(1.44
)
(0.02
)
Adjusted earnings, per diluted
share
3.23
2.81
11.13
10.24
Reportable catastrophes, pre-tax
0.41
0.08
3.14
2.59
Tax impact of reportable catastrophes
(0.08
)
(0.02
)
(0.66
)
(0.55
)
Adjusted earnings, excluding reportable
catastrophes, per diluted share
$
3.56
$
2.87
$
13.61
$
12.28
(1)
Information on the share counts used in the per share
calculations throughout this press release are included in the
Financial Supplement located on Assurant’s Investor Relations
website:
https://ir.assurant.com/investor/default.aspx
(5)
Constant Currency: Represents a non-GAAP financial measure.
Excludes the impact of changes in foreign currency exchange rates
used in the translation of the income statement because they can be
volatile. These amounts are calculated by translating the
comparable prior period results at the weighted average foreign
currency exchange rates used in the current period, and it excludes
the impact of foreign exchange transaction gains (losses)
associated with the remeasurement of non-functional currencies. The
company believes this information allows investors to identify the
significance of changes in foreign currency exchange rates in
period-to-period comparisons.
(UNAUDITED)
Constant Currency
4Q 2022
12 Months 2022
Percentage change in Global Lifestyle
and Global Housing net earned premiums, fees and other
income:
Including FX impact
2.8
%
2.7
%
FX impact
(1.8
)%
(1.5
)%
Excluding FX impact
4.6
%
4.2
%
Percentage change in Global Lifestyle
net earned premiums, fees and other income:
Including FX impact
1.0
%
2.5
%
FX impact
(2.2
)%
(1.8
)%
Excluding FX impact
3.2
%
4.3
%
Percentage change in GAAP net income
from continuing operations, including FX impact
(45.1
)%
(54.1
)%
Percentage change in Adjusted EBITDA,
including FX impact
8.6
%
(1.0
)%
Percentage change in Adjusted EBITDA,
excluding reportable catastrophes:
Including FX impact
15.3
%
0.6
%
FX impact
(3.3
)%
(2.4
)%
Excluding FX impact
18.6
%
3.0
%
Percentage change in Global Lifestyle
Adjusted EBITDA:
Including FX impact
6.4
%
7.3
%
FX impact
(5.5
)%
(3.8
)%
Excluding FX impact
11.9
%
11.1
%
(6)
The metrics included within the company’s outlook each
constitute forward-looking information and the company believes
that it cannot, without unreasonable efforts, forecast certain
information needed to reconcile such forward-looking information to
the most comparable GAAP measure, the probable significance of
which cannot be determined. The company is able to quantify a
full-year estimate of interest expense, depreciation expense and
amortization of purchased intangible assets, each on a pre-tax
basis, which are expected to be approximately $110 million, $114
million and $71 million, respectively. Many of the other GAAP
components cannot be reliably quantified due to the combination of
variability and volatility of such components and may, depending on
the size of the components, have a significant impact on the
reconciliation.
Assurant, Inc.
Consolidated Statement of Operations
(unaudited)
Three and Twelve Months Ended December
31, 2022 and 2021
4Q
12 Months
2022
2021
2022
2021
($ in millions except number
of shares and per share amounts)
Revenues
Net earned premiums
$
2,262.9
$
2,175.8
$
8,765.3
$
8,572.1
Fees and other income
301.1
314.9
1,243.3
1,172.9
Net investment income
102.3
79.2
364.1
314.4
Net realized (losses) gains on investments
and fair value changes to equity securities
(13.5
)
5.0
(179.7
)
128.2
Total revenues
2,652.8
2,574.9
10,193.0
10,187.6
Benefits, losses and expenses
Policyholder benefits
599.3
517.7
2,359.8
2,201.9
Underwriting, selling, general and
administrative expenses
1,921.5
1,871.5
7,366.3
7,081.9
Goodwill impairment
7.8
—
7.8
—
Interest expense
27.9
27.1
108.3
111.8
Loss on extinguishment of debt
—
—
0.9
20.7
Total benefits, losses and expenses
2,556.5
2,416.3
9,843.1
9,416.3
Income from continuing operations before
provision for income taxes
96.3
158.6
349.9
771.3
Provision for income taxes
28.2
34.6
73.3
168.4
Net income from continuing operations
68.1
124.0
276.6
602.9
Net income from discontinued
operations
—
(3.1
)
—
758.9
Net income
68.1
120.9
276.6
1,361.8
Less: Preferred stock dividends
—
—
—
(4.7
)
Net income attributable to common
stockholders
$
68.1
$
120.9
$
276.6
$
1,357.1
Net income from continuing operations
per share:
Basic
$
1.27
$
2.16
$
5.09
$
10.11
Diluted
$
1.27
$
2.15
$
5.05
$
10.03
Common stock dividends per
share
$
0.70
$
0.68
$
2.74
$
2.66
Share data:
Basic weighted average shares
outstanding
53,415,238
57,274,878
54,371,531
59,140,861
Diluted weighted average shares
outstanding
53,773,862
57,728,138
54,782,528
60,123,694
Assurant, Inc.
Consolidated Condensed Balance Sheets
(unaudited)
At December 31, 2022 and December 31,
2021
December 31,
December 31,
2022
2021
($ in millions)
Assets
Investments and cash and cash
equivalents
$
9,061.2
$
10,712.4
Reinsurance recoverables
7,005.9
6,181.2
Deferred acquisition costs
9,677.1
8,811.0
Goodwill
2,603.0
2,571.6
Value of business acquired
262.8
583.4
Other assets
4,513.8
3,984.1
Assets held for sale
—
1,076.9
Total assets
$
33,123.8
$
33,920.6
Liabilities
Policyholder benefits and claims
payable
$
2,724.4
$
2,018.0
Unearned premiums
19,802.4
18,623.7
Debt
2,129.9
2,202.5
Accounts payable and other liabilities
4,238.4
4,547.5
Liabilities held for sale
—
1,064.8
Total liabilities
28,895.1
28,456.5
Stockholders’ equity
Equity, excluding accumulated other
comprehensive loss
5,214.9
5,614.1
Accumulated other comprehensive loss
(986.2
)
(150.0
)
Total equity
4,228.7
5,464.1
Total liabilities and equity
$
33,123.8
$
33,920.6
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230207006066/en/
Media Contacts: Linda Recupero Senior Vice President,
Global Enterprise Communications Phone: 201.519.9773
linda.recupero@assurant.com Stacie Sherer Vice President, Corporate
Communications Phone: 917.420.0980 stacie.sherer@assurant.com
Investor Relations Contacts: Suzanne Shepherd Senior Vice
President, Investor Relations and Sustainability Phone:
201.788.4324 suzanne.shepherd@assurant.com Sean Moshier Vice
President, Investor Relations Phone: 914.204.2253
sean.moshier@assurant.com
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