Significant Earnings and EPS Growth Driven by
Continued Strong Performance in Global Housing and Growth in Global
Lifestyle
Company Increases 2023 Outlook to Deliver Mid-
to High-Teens Growth in Adjusted EBITDA, with Adjusted EPS Growth
to Exceed Adjusted EBITDA, Both Ex. Catastrophes
Assurant, Inc. (NYSE: AIZ), a leading global business services
company that supports, protects and connects major consumer
purchases, today reported results for the third quarter ended
September 30, 2023.
“Results for the third quarter were exceptionally strong and
outperformed our expectations,” said Assurant President and CEO
Keith Demmings. “Global Housing’s top-line momentum and improving
loss experience combined with Global Lifestyle’s growing U.S.
mobile business produced significant year-over-year earnings
growth.”
“Our year-to-date performance underscores the strength of our
business model and is the result of the many strategic actions
taken throughout Assurant over the last 18 months to drive
financial and operational excellence. Looking ahead, we are focused
on executing our 2023 financial objectives as we continue to make
critical investments in talent and technology to drive sustainable
growth while effectively deploying our capital to support long-term
shareholder value creation,” 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. More information can be found in the
Non-GAAP Financial Measures section.
(Unaudited)
Q3'23
Q3'22
Change
9M'23
9M'22
Change
$ in millions, except per share
data
GAAP net income
190.1
7.3
2,504%
460.0
208.5
121%
Adjusted EBITDA1
330.7
116.0
185%
896.7
682.0
31%
Adjusted EBITDA, ex. reportable
catastrophes2
357.1
239.6
49%
986.9
832.0
19%
GAAP net income per diluted share
3.54
0.14
2,429%
8.55
3.78
126%
Adjusted earnings per diluted share3
4.29
1.01
325%
10.93
7.90
38%
Adjusted earnings, ex. reportable
catastrophes, per diluted share4
4.68
2.81
67%
12.25
10.05
22%
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.
Third Quarter 2023
Summary
- GAAP net income increased to $190.1 million, compared to third
quarter 2022 of $7.3 million, while net income per diluted share
increased to $3.54 versus the prior year period of $0.14.
- Adjusted EBITDA, excluding reportable catastrophes2, increased
to $357.1 million, compared to third quarter 2022 of $239.6
million.
- Adjusted earnings, excluding reportable catastrophes, per
diluted share4, increased to $4.68, compared to third quarter 2022
of $2.81.
- Holding company liquidity was $491 million; returned $87
million to shareholders via share repurchases and common stock
dividends in the quarter.
2023 Outlook
The company now expects:
- Adjusted EBITDA, excluding reportable catastrophes6, to
increase mid- to high-teens, driven by significant growth in Global
Housing, partially offset by a modest decline in Global
Lifestyle.
- Adjusted earnings, excluding reportable catastrophes, per
diluted share6, growth rate to exceed the growth rate in Adjusted
EBITDA, excluding reportable catastrophes, due to higher earnings
growth, a lower effective tax rate and the impact of share
repurchases. 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.
Third Quarter 2023 Consolidated Results
(Unaudited)
Q3'23
Q3'22
Change
9M'23
9M'22
Change
$ in millions
GAAP net income
190.1
7.3
2,504%
460.0
208.5
121%
Adjusted
EBITDA
Global Lifestyle
191.8
179.4
7%
587.7
627.1
(6)%
Global Housing
165.1
(38.5)
529%
388.1
126.9
206%
Corporate and Other
(26.2)
(24.9)
(5)%
(79.1)
(72.0)
(10)%
Adjusted EBITDA1
330.7
116.0
185%
896.7
682.0
31%
Reportable catastrophes
26.4
123.6
90.2
150.0
Adjusted EBITDA, ex.
reportable catastrophes
Global Lifestyle2
192.0
179.2
7%
588.8
626.8
(6)%
Global Housing2
191.3
85.3
124%
477.2
277.2
72%
Corporate and Other
(26.2)
(24.9)
(5)%
(79.1)
(72.0)
(10)%
Adjusted EBITDA, ex. reportable
catastrophes2
357.1
239.6
49%
986.9
832.0
19%
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
- GAAP net income increased to $190.1 million, compared to
third quarter 2022 of $7.3 million primarily due to higher earnings
and lower reportable catastrophes within Global Housing. This was
partially offset by a $10.5 million after-tax charge from
additional restructuring costs related to extending the company’s
previously announced restructuring plan in fourth quarter
2022.
- GAAP net income per diluted share increased to
$3.54 compared to third quarter 2022 of $0.14. The increase was
primarily driven by the factors noted above.
- Adjusted EBITDA1 increased 185 percent to $330.7 million
compared to the prior year period, primarily due to strong
performance in Global Housing, including $97.6 million of lower
pre-tax reportable catastrophes. Excluding reportable catastrophes,
Adjusted EBITDA2 increased 49 percent, including on a constant
currency basis5, to $357.1 million, primarily due to lower
non-catastrophe loss experience and continued top-line momentum
within Global Housing, as well as growth in Global Lifestyle to a
lesser extent.
- Adjusted earnings, excluding reportable catastrophes, per
diluted share4, increased 67 percent to $4.68 compared to the
prior year period, primarily from higher Global Housing segment
earnings and $5.2 million of one-time tax benefits.
- Net earned premiums, fees and other income from the
Global Lifestyle and Global Housing segments totaled $2.66 billion
compared to $2.47 billion in third quarter 2022, up 8 percent,
similar on a constant currency basis5, mainly from an increase in
Homeowners within Global Housing and prior period sales in Global
Automotive within Global Lifestyle.
Global Lifestyle
$ in millions
Q3'23
Q3'22
Change
9M'23
9M'22
Change
Adjusted EBITDA
191.8
179.4
7%
587.7
627.1
(6)%
Net earned premiums, fees and other
income
2,105.8
2,022.6
4%
6,255.0
6,023.8
4%
- Adjusted EBITDA increased 7 percent compared to third
quarter 2022, including on a constant currency basis5, driven by
growth in Connected Living, which was partially offset by lower
Global Automotive results. Excluding a one-time $11.2 million
client contract benefit from third quarter 2022, underlying Global
Lifestyle results increased $23.6 million, or 14 percent, primarily
driven by higher net investment income, stronger mobile device
protection results and improved mobile trade-in margins in North
America. This increase was partially offset by ongoing elevated
claims costs in Global Automotive and lower results in Asia Pacific
within Connected Living.
- Net earned premiums, fees and other income increased 4
percent compared to third quarter 2022, including on a constant
currency basis5, driven mainly by prior period sales in Global
Automotive. Connected Living increased modestly from growth in
North American mobile subscribers, partially offset by an
approximately $55 million impact from previously disclosed mobile
program contract changes as well as runoff mobile programs.
Global Housing
$ in millions
Q3'23
Q3'22
Change
9M'23
9M'22
Change
Adjusted EBITDA
165.1
(38.5)
529%
388.1
126.9
206%
Reportable catastrophes
26.2
123.8
89.1
150.3
Adjusted EBITDA, ex. reportable
catastrophes2
191.3
85.3
124%
477.2
277.2
72%
Net earned premiums, fees and other
income
555.2
451.8
23%
1,597.1
1,375.5
16%
- Adjusted EBITDA increased significantly compared to the
third quarter 2022, primarily due to $97.6 million of lower pre-tax
reportable catastrophes. Excluding reportable catastrophes,
Adjusted EBITDA2 increased 124 percent primarily due to lower
non-catastrophe loss experience, including a $14.6 million reserve
reduction in the current quarter compared to $24.3 million of
reserve strengthening in the prior year period, as well as higher
net earned premiums and expense leverage within Homeowners. Higher
net investment income also contributed to the increase.
- Net earned premiums, fees and other income increased 23
percent compared to third quarter 2022, largely driven by
Homeowners from higher average insured values and premium rates
primarily to address increased claims severity as well as higher
policies in-force. The increase was also driven by the absence of
catastrophe reinstatement premiums compared to $34.2 million in the
prior year period.
Corporate and Other
$ in millions
Q3'23
Q3'22
Change
9M'23
9M'22
Change
Adjusted EBITDA
(26.2)
(24.9)
(5)%
(79.1)
(72.0)
(10)%
- Adjusted EBITDA loss increased in third quarter 2023
compared to the prior year period, primarily due to higher
employee-related expenses, which was partially offset by higher net
investment income.
Holding Company Liquidity Position
- Holding company liquidity totaled $491 million as of
September 30, 2023, or $266 million above the company’s targeted
minimum level of $225 million. Dividends paid by the operating
segments to the holding company in third quarter 2023 totaled $202
million. Year-to-date, dividends paid by the operating segments
totaled $493 million, representing approximately 55% of Adjusted
EBITDA, including reportable catastrophes. In addition to quarterly
interest and Corporate and Other expenses, the company had $50
million of cash outflows related to the payment of the remaining
principal amount of its September 2023 Senior Notes.
- Share repurchases and common stock dividends totaled $87
million in third quarter 2023. During third quarter 2023, Assurant
repurchased approximately 360 thousand shares of common stock for
$50 million and paid $37 million in common stock dividends. From
October 1 through October 31, 2023, the company repurchased
approximately 205 thousand shares for $30 million, with $174
million remaining under the current repurchase authorization.
2023 Company Outlook6
Note: Some of 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.
Based on current market conditions, for
full-year 2023, the company now expects:
$ in millions, except per share
data
FY 2022
9M’23
2023 Outlook6
Adjusted EBITDA, ex. reportable
catastrophes2
1,128.3
986.9
Mid- to high-teens growth
Adjusted earnings, ex. reportable
catastrophes, per diluted share4
$13.61
$12.25
Growth rate to exceed Adjusted
EBITDA, ex. reportable catastrophes
- Adjusted EBITDA, excluding reportable catastrophes6, to
increase by mid- to high-teens, as significant growth in Global
Housing is partially offset by a modest decline in Global
Lifestyle.
- Global Housing Adjusted EBITDA, excluding reportable
catastrophes6, to grow significantly, driven by strong
performance in Homeowners reflecting higher lender-placed net
earned premiums, improving non-catastrophe loss experience
including favorable prior period reserve development, and continued
expense savings.
- Global Lifestyle Adjusted EBITDA, to decline modestly,
largely driven by Global Automotive from elevated claims costs and
lower contributions within Asia Pacific, including softer volumes
and the impact of foreign exchange. The decline will be partially
offset by higher net investment income, mobile growth in North
America and continued expense savings.
- Corporate and Other Adjusted EBITDA loss to be
approximately $105 million as the company continues to drive
expense leverage.
- Adjusted earnings, excluding reportable catastrophes, per
diluted share6 growth rate to exceed growth in Adjusted EBITDA,
excluding reportable catastrophes driven by higher earnings, a
lower effective tax rate and the impact of share repurchases. The
company expects depreciation expense of approximately $105 million,
interest expense of approximately $108 million, and an effective
tax rate of approximately 20 to 22 percent.
- Business segment dividends to approximate 65% of segment
Adjusted EBITDA, including reportable catastrophes, which takes
into account the extended restructuring plan. This is subject to
the business and investment portfolio performance, and rating
agency and regulatory capital requirements.
- Capital deployment priorities to focus on maintaining a strong
financial position, supporting business growth by funding
investments and M&A, and returning capital to shareholders
through common stock dividends and share repurchases, subject to
Board approval.
Earnings Conference Call
The third quarter 2023 earnings conference call and webcast will
be held on Wednesday, November 1, 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 X (formerly 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 they disintermediate us, 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 (including the Israel-Hamas war) 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, excluding net realized
losses (gains) on investments and fair value changes to equity
securities, non-core operations, restructuring costs related to
strategic exit activities, Assurant Health runoff operations,
interest expense, provision (benefit) for income taxes,
depreciation expense, amortization of purchased intangible assets,
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. 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 $5.0 million,
pre-tax, net of reinsurance and client profit sharing adjustments
and including reinstatement and other premiums), as another
important measure of the company’s operating performance. The
company believes this metric provides investors with an important
measure of the company’s operating performance for the reasons
noted above, and because it excludes reportable catastrophes, which
can be volatile. The comparable GAAP measure is net income.
(UNAUDITED)
3Q
3Q
9 Months
9 Months
12 Months
($ in millions)
2023
2022
2023
2022
2022
GAAP net income
$
190.1
$
7.3
$
460.0
$
208.5
$
276.6
Less:
Interest expense
27.0
26.3
81.2
80.4
108.3
Provision for income taxes
38.7
1.2
120.2
45.1
73.3
Depreciation expense
25.8
22.6
77.6
64.7
86.3
Amortization of purchased intangible
assets
18.2
17.3
55.6
51.9
69.7
Adjustments, pre-tax:
Net realized losses on investments and
fair value changes to equity securities
19.1
27.4
49.7
166.2
179.7
Non-core operations
(3.0
)
2.9
39.4
45.1
79.5
Restructuring costs
13.2
—
18.3
0.2
53.1
Assurant Health runoff operations
0.3
0.1
(7.2
)
0.6
0.6
Other adjustments(1)
1.3
10.9
1.9
19.3
29.1
Adjusted EBITDA
330.7
116.0
896.7
682.0
956.2
Reportable catastrophes
26.4
123.6
90.2
150.0
172.1
Adjusted EBITDA, excluding reportable
catastrophes
$
357.1
$
239.6
$
986.9
$
832.0
$
1,128.3
(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)
3Q 2023
3Q 2022
Global Lifestyle
Global Housing
Global Lifestyle
Global Housing
($ in millions)
Adjusted EBITDA
$
191.8
$
165.1
$
179.4
$
(38.5
)
Reportable catastrophes
0.2
26.2
(0.2
)
123.8
Adjusted EBITDA, excluding reportable
catastrophes
$
192.0
$
191.3
$
179.2
$
85.3
(UNAUDITED)
9 Months 2023
9 Months 2022
Global Lifestyle
Global Housing
Global Lifestyle
Global Housing
($ in millions)
Adjusted EBITDA
$
587.7
$
388.1
$
627.1
$
126.9
Reportable catastrophes
1.1
89.1
(0.3
)
150.3
Adjusted EBITDA, excluding reportable
catastrophes
$
588.8
$
477.2
$
626.8
$
277.2
(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, excluding net
realized losses (gains) on investments and fair value changes to
equity securities, amortization of purchased intangible assets,
non-core operations, restructuring costs related to strategic exit
activities, Assurant Health runoff operations, as well as other
highly variable or unusual items, 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 per diluted share, defined as net income,
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 per diluted share (defined above).
(UNAUDITED)
3Q
3Q
9 Months
9 Months
12 Months
($ in millions)
2023
2022
2023
2022
2022
GAAP net income
$
190.1
$
7.3
$
460.0
$
208.5
$
276.6
Adjustments, pre-tax:
Net realized losses on investments and
fair value changes to equity securities
19.1
27.4
49.7
166.2
179.7
Amortization of purchased intangible
assets
18.2
17.3
55.6
51.9
69.7
Non-core operations
(3.0
)
2.9
39.4
45.1
79.5
Restructuring costs
13.2
—
18.3
0.2
53.1
Assurant Health runoff operations
0.3
0.1
(7.2
)
0.6
0.6
Other adjustments
1.3
10.9
1.9
19.3
29.1
Benefit for income taxes
(8.6
)
(11.2
)
(29.7
)
(56.1
)
(78.8
)
Adjusted earnings
230.6
54.7
588.0
435.7
609.5
Reportable catastrophes, pre-tax
26.4
123.6
90.2
150.0
172.1
Tax impact of reportable catastrophes
(5.5
)
(26.0
)
(18.9
)
(31.5
)
(36.2
)
Adjusted earnings, excluding reportable
catastrophes
$
251.5
$
152.3
$
659.3
$
554.2
$
745.4
(UNAUDITED)
3Q
3Q
9 Months
9 Months
12 Months
2023
2022
2023
2022
2022
GAAP net income per diluted
share(1)
$
3.54
$
0.14
$
8.55
$
3.78
$
5.05
Adjustments, pre-tax:
Net realized losses on investments and
fair value changes to equity securities
0.36
0.51
0.92
3.01
3.28
Amortization of purchased intangible
assets
0.34
0.32
1.03
0.94
1.27
Non-core operations
(0.06
)
0.05
0.73
0.82
1.45
Restructuring costs
0.25
—
0.34
—
0.97
Assurant Health runoff operations
0.01
—
(0.13
)
0.01
0.01
Other adjustments
0.02
0.20
0.04
0.36
0.54
Benefit for income taxes
(0.17
)
(0.21
)
(0.55
)
(1.02
)
(1.44
)
Adjusted earnings, per diluted
share
4.29
1.01
10.93
7.90
11.13
Reportable catastrophes, pre-tax
0.49
2.28
1.67
2.72
3.14
Tax impact of reportable catastrophes
(0.10
)
(0.48
)
(0.35
)
(0.57
)
(0.66
)
Adjusted earnings, excluding reportable
catastrophes, per diluted share
$
4.68
$
2.81
$
12.25
$
10.05
$
13.61
(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
3Q 2023
Percentage change in Global Lifestyle
and Global Housing net earned premiums, fees and other
income:
Including FX impact
7.5
%
FX impact
0.1
%
Excluding FX impact
7.4
%
Percentage change in Global Lifestyle
net earned premiums, fees and other income:
Including FX impact
4.1
%
FX impact
0.1
%
Excluding FX impact
4.0
%
Percentage change in GAAP net income,
including FX impact
2,504.1
%
Percentage change in Adjusted EBITDA,
including FX impact
185.1
%
Percentage change in Adjusted EBITDA,
excluding reportable catastrophes:
Including FX impact
49.0
%
FX impact
—
%
Excluding FX impact
49.0
%
Percentage change in Global Lifestyle
Adjusted EBITDA:
Including FX impact
6.9
%
FX impact
—
%
Excluding FX impact
6.9
%
(6)
The company outlook for Adjusted earnings,
excluding reportable catastrophes, per diluted share and Adjusted
EBITDA, excluding reportable catastrophes, for Assurant and Global
Housing, each constitute forward-looking non-GAAP financial
measures and the company believes that it cannot, without
unreasonable efforts, forecast certain information needed to
reconcile such forward-looking non-GAAP financial measures 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, and the
estimated effective tax rate, which are expected to be
approximately $108 million, $105 million, $74 million and 20 to 22
percent, respectively. Other GAAP components cannot be reliably
quantified due to the combination of variability and volatility of
such components and may, depending on the size of the components,
have a significant impact on the reconciliation.
Assurant, Inc.
Consolidated Statement of Operations
(unaudited)
Three and Nine Months Ended September
30, 2023 and 2022
3Q
9 Months
2023
2022
2023
2022
($ in millions except number
of shares and per share amounts)
Revenues
Net earned premiums
$
2,357.3
$
2,197.1
$
6,965.8
$
6,502.4
Fees and other income
310.4
294.6
888.8
942.2
Net investment income
125.5
83.5
343.6
261.8
Net realized losses on investments and
fair value changes to equity securities
(19.1
)
(27.4
)
(49.7
)
(166.2
)
Total revenues
2,774.1
2,547.8
8,148.5
7,540.2
Benefits, losses and expenses
Policyholder benefits
644.6
670.5
1,922.7
1,760.5
Underwriting, selling, general and
administrative expenses
1,873.7
1,842.5
5,564.5
5,444.8
Interest expense
27.0
26.3
81.2
80.4
Loss (gain) on extinguishment of debt
—
—
(0.1
)
0.9
Total benefits, losses and expenses
2,545.3
2,539.3
7,568.3
7,286.6
Income before provision for income
taxes
228.8
8.5
580.2
253.6
Provision for income taxes
38.7
1.2
120.2
45.1
Net income
$
190.1
$
7.3
$
460.0
$
208.5
Net income per share:
Basic
$
3.55
$
0.14
$
8.58
$
3.81
Diluted
$
3.54
$
0.14
$
8.55
$
3.78
Common stock dividends per
share
$
0.70
$
0.68
$
2.10
$
2.04
Share data:
Basic weighted average shares
outstanding
53,535,982
53,717,373
53,591,495
54,693,799
Diluted weighted average shares
outstanding
53,745,173
54,066,605
53,824,384
55,124,850
Assurant, Inc.
Consolidated Condensed Balance Sheets
(unaudited)
At September 30, 2023 and December 31,
2022
September 30,
December 31,
2023
2022
($ in millions)
Assets
Investments and cash and cash
equivalents
$
9,348.0
$
9,061.2
Reinsurance recoverables
6,683.8
6,999.4
Deferred acquisition costs
9,903.8
9,677.1
Goodwill
2,605.2
2,603.0
Value of business acquired
124.7
262.8
Other assets
4,543.3
4,513.8
Total assets
$
33,208.8
$
33,117.3
Liabilities
Policyholder benefits and claims
payable
$
2,521.8
$
2,717.9
Unearned premiums
20,119.9
19,802.4
Debt
2,080.0
2,129.9
Accounts payable and other liabilities
3,996.5
4,238.4
Total liabilities
28,718.2
28,888.6
Stockholders’ equity
Equity, excluding accumulated other
comprehensive loss
5,541.6
5,214.9
Accumulated other comprehensive loss
(1,051.0
)
(986.2
)
Total equity
4,490.6
4,228.7
Total liabilities and equity
$
33,208.8
$
33,117.3
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231031747273/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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