Delivered Significant Earnings and EPS Growth
in the Second Quarter Driven by Continued Momentum in Global
Housing
Company Increases 2023 Outlook to Deliver High
Single-Digit Adjusted EBITDA and Adjusted EPS Growth, 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 second quarter ended June
30, 2023.
“Overall, we are pleased with our second quarter results which
were driven by significant top-line growth and improving loss
experience in Global Housing. While Global Lifestyle results were
down year-over-year from ongoing elevated claims in Global
Automotive and lower contributions in Japan, we have seen continued
strength in our U.S. Connected Living business and made significant
progress in the first half of this year stabilizing international
results which were impacted by headwinds in the second half of
2022,” said Assurant President and CEO Keith Demmings.
“Given our strong year-to-date performance and momentum expected
in the second-half of the year, we are increasing our 2023 outlook
as we now expect Adjusted EBITDA and Adjusted earnings per share,
both excluding catastrophes, to increase high single-digits. In
addition, we resumed share repurchases in the second quarter and
expect to continue share repurchase activity for the remainder of
the year as we generate strong cash flows through our
differentiated business model,” 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)
Q2'23
Q2'22
Change
6M'23
6M'22
Change
$ in millions, except per share
data
GAAP net income
156.3
52.2
199%
269.9
201.2
34%
Adjusted EBITDA1
323.1
257.1
26%
566.0
566.0
—%
Adjusted EBITDA, ex. reportable
catastrophes2
336.5
277.4
21%
629.8
592.4
6%
GAAP net income per diluted share
2.90
0.95
205%
5.01
3.61
39%
Adjusted earnings per diluted share3
3.89
2.95
32%
6.64
6.85
(3)%
Adjusted earnings, ex. reportable
catastrophes, per diluted share4
4.09
3.25
26%
7.57
7.22
5%
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.
Second Quarter 2023
Summary
- GAAP net income increased to $156.3 million, compared to second
quarter 2022 of $52.2 million, while net income per diluted share
increased to $2.90 versus the prior year period of $0.95.
- Adjusted EBITDA, excluding reportable catastrophes2, increased
to $336.5 million, compared to second quarter 2022 of $277.4
million.
- Adjusted earnings, excluding reportable catastrophes, per
diluted share4, increased to $4.09, compared to second quarter 2022
of $3.25.
- Holding company liquidity was $495 million; returned $60
million to shareholders via common stock dividends and the
resumption of share repurchases in the quarter.
2023 Outlook
The company now expects:
- Adjusted EBITDA, excluding reportable catastrophes6, to
increase high single-digits, 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 approximate Adjusted EBITDA,
excluding reportable catastrophes, as an increase in earnings and
the impact of share repurchases are partially offset by 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.
Second Quarter 2023 Consolidated Results
(Unaudited)
Q2'23
Q2'22
Change
6M'23
6M'22
Change
$ in millions
GAAP net income
156.3
52.2
199%
269.9
201.2
34%
Adjusted
EBITDA
Global Lifestyle
197.0
221.0
(11)%
395.9
447.7
(12)%
Global Housing
154.6
61.0
153%
223.0
165.4
35%
Corporate and Other
(28.5)
(24.9)
(14)%
(52.9)
(47.1)
(12)%
Adjusted EBITDA1
323.1
257.1
26%
566.0
566.0
—%
Reportable catastrophes
13.4
20.3
63.8
26.4
Adjusted EBITDA, ex.
reportable catastrophes
Global Lifestyle2
197.0
221.0
(11)%
396.8
447.6
(11)%
Global Housing2
168.0
81.3
107%
285.9
191.9
49%
Corporate and Other
(28.5)
(24.9)
(14)%
(52.9)
(47.1)
(6)%
Adjusted EBITDA, ex. reportable
catastrophes2
336.5
277.4
21%
629.8
592.4
6%
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 $156.3 million, compared to
second quarter 2022 of $52.2 million. The increase was primarily
due to higher earnings within Global Housing and a decrease in net
unrealized losses, partially offset by lower Global Lifestyle
earnings.
- GAAP net income per diluted share increased to
$2.90 compared to second quarter 2022 of $0.95. The increase was
primarily driven by the factors noted above.
- Adjusted EBITDA1 increased 26 percent compared to the
prior year period, primarily due to strong performance in
Homeowners within Global Housing, including $6.9 million of lower
pre-tax reportable catastrophes, partially offset by lower results
within Global Lifestyle mainly in Global Automotive. Excluding
reportable catastrophes, Adjusted EBITDA2 increased 21 percent to
$336.5 million, or 22 percent on a constant currency basis5,
primarily due to the factors noted above.
- Adjusted earnings, excluding reportable catastrophes, per
diluted share4, increased 26 percent to $4.09 compared to the
prior year period, primarily from higher Global Housing segment
earnings and ongoing share repurchases, partially offset by lower
Global Lifestyle segment earnings.
- Net earned premiums, fees and other income from the
Global Lifestyle and Global Housing segments totaled $2.65 billion
compared to $2.48 billion in second quarter 2022, up 7 percent,
including on a constant currency basis5, mainly from prior period
sales in Global Automotive within Global Lifestyle and an increase
in Homeowners within Global Housing.
Global Lifestyle
$ in millions
Q2'23
Q2'22
Change
6M'23
6M'22
Change
Adjusted EBITDA
197.0
221.0
(11)%
395.9
447.7
(12)%
Net earned premiums, fees and
other income
2,108.9
2,012.6
5%
4,149.2
4,001.2
4%
- Adjusted EBITDA decreased 11 percent compared to second
quarter 2022, or 10 percent on a constant currency basis5, from
lower Global Automotive and Connected Living results, including the
absence of a $12.9 million gain from the sale of a real estate
joint venture partnership in the prior year period. Excluding the
real estate joint venture partnership gain, underlying Global
Lifestyle results declined $11.1 million, or 5 percent, mainly from
ongoing elevated claims costs in Global Automotive and weaker
results in Asia Pacific and Europe within Connected Living. This
was partially offset by higher investment income across Global
Lifestyle and modest growth in extended service contracts and
mobile device protection results in North America.
- Net earned premiums, fees and other income increased 5
percent compared to second quarter 2022, or 6 percent on a constant
currency basis5, driven by prior period sales in Global Automotive.
Connected Living increased modestly from growth in extended service
contracts and North American mobile subscribers, partially offset
by an approximately $60 million impact from previously disclosed
mobile program contract changes as well as runoff mobile
programs.
Global Housing
$ in millions
Q2'23
Q2'22
Change
6M'23
6M'22
Change
Adjusted EBITDA
154.6
61.0
153%
223.0
165.4
35%
Reportable catastrophes
13.4
20.3
62.9
26.5
Adjusted EBITDA, ex. reportable
catastrophes2
168.0
81.3
107%
285.9
191.9
49%
Net earned premiums, fees and other
income
536.6
466.4
15%
1,041.9
923.7
13%
- Adjusted EBITDA increased 153 percent compared to the
second quarter 2022, primarily due to significant growth in
Homeowners from higher lender-placed net earned premiums and lower
non-catastrophe loss experience, including a $40.0 million
year-over-year decrease in prior period reserve development. Second
quarter 2023 included $13.4 million of reportable catastrophes,
compared to $20.3 million in the prior year period. Excluding
reportable catastrophes, Adjusted EBITDA2 increased 107 percent
primarily due to the factors noted above.
- Net earned premiums, fees and other income increased 15
percent compared to second quarter 2022, largely driven by
Homeowners from increases in lender-placed policies in-force as
well as higher average insured values and premium rates to address
increased claims severity which accelerated in the second quarter
of last year.
Corporate and Other
$ in millions
Q2'23
Q2'22
Change
6M'23
6M'22
Change
Adjusted EBITDA
(28.5)
(24.9)
(14)%
(52.9)
(47.1)
(12)%
- Adjusted EBITDA loss increased in second quarter 2023
compared to the prior year period, primarily due to lower net
investment income from lower asset balances.
Holding Company Liquidity Position
- Holding company liquidity totaled $495 million as of
June 30, 2023, or $270 million above the company’s targeted minimum
level of $225 million. Dividends paid by operating segments to the
holding company in second quarter 2023 totaled $180 million.
- Share repurchases and common stock dividends totaled $60
million in second quarter 2023. During second quarter 2023,
Assurant repurchased approximately 157 thousand shares of common
stock for $20 million and paid $40 million in common stock
dividends. From July 1 through July 28, 2023, the company
repurchased an additional 74 thousand shares for approximately $10
million, with $245 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
Q2’23 YTD
2023 Outlook6
Adjusted EBITDA, ex. reportable
catastrophes2
1,128.3
629.8
High single-digit growth
Adjusted earnings, ex. reportable
catastrophes, per diluted share4
$13.61
$7.57
Growth rate to approximate
Adjusted EBITDA, ex. reportable catastrophes
- Adjusted EBITDA, excluding reportable catastrophes6, to
increase by high single-digits, as significant growth in Global
Housing is partially offset by a modest decline in Global
Lifestyle.
- Global Housing Adjusted EBITDA, excluding reportable
catastrophes6, is expected to grow significantly, driven by
strong performance in Homeowners reflecting higher lender-placed
net earned premiums combined with improving non-catastrophe loss
experience, including favorable prior period reserve development.
In addition, expense savings are expected to be realized over the
course of the year. Catastrophe reinsurance costs are expected to
be up modestly, weighted towards second half 2023.
- Global Lifestyle Adjusted EBITDA, is expected to decline
modestly, largely driven by Global Automotive from elevated claims
costs and less international contributions, including lower volumes
and the impact of foreign exchange. The decline will be partially
offset by higher investment income, expense savings to be realized
over the course of the year, and modest underlying Connected Living
growth in North America.
- 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 share6 growth rate to approximate growth in Adjusted
EBITDA, excluding reportable catastrophes. The company expects
depreciation expense of approximately $110 million, interest
expense of approximately $110 million, and an effective tax rate of
approximately 22 to 24 percent.
- 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.
- 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 second quarter 2023 earnings conference call and webcast
will be held on Wednesday, August 2, 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 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 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 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
$5.0 million, pre-tax, net of reinsurance and client profit sharing
adjustments and including reinstatement and other premiums), as
another important measure of the company’s operating performance.
The company believes this metric provides investors with an
important measure of the company’s operating performance for the
reasons noted above, and because it excludes reportable
catastrophes, which can be volatile. The comparable GAAP measure is
net income.
(UNAUDITED)
2Q
2Q
6 Months
6 Months
12 Months
($ in millions)
2023
2022
2023
2022
2022
GAAP net income
$
156.3
$
52.2
$
269.9
$
201.2
$
276.6
Less:
Interest expense
27.2
27.2
54.2
54.1
108.3
Provision for income taxes
48.0
17.7
81.5
43.9
73.3
Depreciation expense
25.4
21.8
51.8
42.1
86.3
Amortization of purchased intangible
assets
18.7
17.0
37.4
34.6
69.7
Adjustments, pre-tax:
Net realized losses on investments and
fair value changes to equity securities
20.0
76.4
30.6
138.8
179.7
Non-core operations
30.2
36.7
42.4
42.2
79.5
Restructuring costs
(1.3
)
0.2
5.1
0.2
53.1
Assurant Health runoff operations
—
0.5
(7.5
)
0.5
0.6
Other adjustments(1)
(1.4
)
7.4
0.6
8.4
29.1
Adjusted EBITDA
323.1
257.1
566.0
566.0
956.2
Reportable catastrophes
13.4
20.3
63.8
26.4
172.1
Adjusted EBITDA, excluding reportable
catastrophes
$
336.5
$
277.4
$
629.8
$
592.4
$
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)
2Q 2023
2Q 2022
Global
Lifestyle
Global
Housing
Global
Lifestyle
Global
Housing
($ in millions)
Adjusted EBITDA
$
197.0
$
154.6
$
221.0
$
61.0
Reportable catastrophes
—
13.4
—
20.3
Adjusted EBITDA, excluding reportable
catastrophes
$
197.0
$
168.0
$
221.0
$
81.3
(UNAUDITED)
6 Months 2023
6 Months 2022
Global
Lifestyle
Global
Housing
Global
Lifestyle
Global
Housing
($ in millions)
Adjusted EBITDA
$
395.9
$
223.0
$
447.7
$
165.4
Reportable catastrophes
0.9
62.9
(0.1
)
26.5
Adjusted EBITDA, excluding reportable
catastrophes
$
396.8
$
285.9
$
447.6
$
191.9
(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)
2Q
2Q
6 Months
6 Months
12 Months
($ in millions)
2023
2022
2023
2022
2022
GAAP net income
$
156.3
$
52.2
$
269.9
$
201.2
$
276.6
Adjustments, pre-tax:
Net realized losses on investments and
fair value changes to equity securities
20.0
76.4
30.6
138.8
179.7
Amortization of purchased intangible
assets
18.7
17.0
37.4
34.6
69.7
Non-core operations
30.2
36.7
42.4
42.2
79.5
Restructuring costs
(1.3
)
0.2
5.1
0.2
53.1
Assurant Health runoff operations
—
0.5
(7.5
)
0.5
0.6
Other adjustments
(1.4
)
7.4
0.6
8.4
29.1
Benefit for income taxes
(13.0
)
(28.0
)
(21.1
)
(44.9
)
(78.8
)
Adjusted earnings
209.5
162.4
357.4
381.0
609.5
Reportable catastrophes, pre-tax
13.4
20.3
63.8
26.4
172.1
Tax impact of reportable catastrophes
(2.8
)
(4.2
)
(13.4
)
(5.5
)
(36.2
)
Adjusted earnings, excluding reportable
catastrophes
$
220.1
$
178.5
$
407.8
$
401.9
$
745.4
(UNAUDITED)
2Q
2Q
6 Months
6 Months
12 Months
2023
2022
2023
2022
2022
GAAP net income per diluted
share(1)
$
2.90
$
0.95
$
5.01
$
3.61
$
5.05
Adjustments, pre-tax:
Net realized losses on investments and
fair value changes to equity securities
0.37
1.39
0.57
2.49
3.28
Amortization of purchased intangible
assets
0.35
0.31
0.69
0.62
1.27
Non-core operations
0.56
0.67
0.79
0.76
1.45
Restructuring costs
(0.03
)
—
0.09
—
0.97
Assurant Health runoff operations
—
0.01
(0.14
)
0.01
0.01
Other adjustments
(0.02
)
0.13
0.01
0.17
0.54
Benefit for income taxes
(0.24
)
(0.51
)
(0.38
)
(0.81
)
(1.44
)
Adjusted earnings, per diluted
share
3.89
2.95
6.64
6.85
11.13
Reportable catastrophes, pre-tax
0.25
0.37
1.18
0.47
3.14
Tax impact of reportable catastrophes
(0.05
)
(0.07
)
(0.25
)
(0.10
)
(0.66
)
Adjusted earnings, excluding reportable
catastrophes, per diluted share
$
4.09
$
3.25
$
7.57
$
7.22
$
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
2Q 2023
Percentage change in Global Lifestyle
and Global Housing net earned premiums, fees and other
income:
Including FX impact
6.7
%
FX impact
(0.7
)%
Excluding FX impact
7.4
%
Percentage change in Global Lifestyle
net earned premiums, fees and other income:
Including FX impact
4.8
%
FX impact
(0.8
)%
Excluding FX impact
5.6
%
Percentage change in GAAP net income,
including FX impact
199.4
%
Percentage change in Adjusted EBITDA,
including FX impact
25.7
%
Percentage change in Adjusted EBITDA,
excluding reportable catastrophes:
Including FX impact
21.3
%
FX impact
(1.0
)%
Excluding FX impact
22.3
%
Percentage change in Global Lifestyle
Adjusted EBITDA:
Including FX impact
(10.9
)%
FX impact
(1.3
)%
Excluding FX impact
(9.6
)%
(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
information and the company believes that it cannot, without
unreasonable efforts, forecast certain information needed to
reconcile such forward-looking non-GAAP 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, $110 million and $76
million, respectively. Many of the other GAAP components cannot be
reliably quantified due to the combination of variability and
volatility of such components and may, depending on the size of the
components, have a significant impact on the reconciliation.
Assurant, Inc.
Consolidated Statement of
Operations (unaudited)
Three and Six Months Ended
June 30, 2023 and 2022
2Q
6 Months
2023
2022
2023
2022
($ in millions except number
of shares and per share amounts)
Revenues
Net earned premiums
$
2,343.0
$
2,168.9
$
4,608.5
$
4,305.3
Fees and other income
295.7
325.2
578.4
647.6
Net investment income
112.9
92.0
218.1
178.3
Net realized losses on investments and
fair value changes to equity securities
(20.0
)
(76.4
)
(30.6
)
(138.8
)
Total revenues
2,731.6
2,509.7
5,374.4
4,992.4
Benefits, losses and expenses
Policyholder benefits
632.5
600.0
1,278.1
1,090.0
Underwriting, selling, general and
administrative expenses
1,867.6
1,811.7
3,690.8
3,602.3
Interest expense
27.2
27.2
54.2
54.1
Loss (gain) on extinguishment of debt
—
0.9
(0.1
)
0.9
Total benefits, losses and expenses
2,527.3
2,439.8
5,023.0
4,747.3
Income before provision for income
taxes
204.3
69.9
351.4
245.1
Provision for income taxes
48.0
17.7
81.5
43.9
Net income
$
156.3
$
52.2
269.9
201.2
Net income per share:
Basic
$
2.91
$
0.96
$
5.03
$
3.65
Diluted
$
2.90
$
0.95
$
5.01
$
3.61
Common stock dividends per
share
$
0.70
$
0.68
$
1.40
$
1.36
Share data:
Basic weighted average shares
outstanding
53,745,611
54,607,321
53,619,711
55,190,104
Diluted weighted average shares
outstanding
53,889,682
55,014,947
53,843,035
55,663,946
Assurant, Inc.
Consolidated Condensed Balance
Sheets (unaudited)
At June 30, 2023 and December
31, 2022
June 30,
December 31,
2023
2022
($ in millions)
Assets
Investments and cash and cash
equivalents
$
9,390.3
$
9,061.2
Reinsurance recoverables
6,636.6
6,999.4
Deferred acquisition costs
9,818.5
9,677.1
Goodwill
2,606.3
2,603.0
Value of business acquired
166.4
262.8
Other assets
4,486.6
4,513.8
Total assets
$
33,104.7
$
33,117.3
Liabilities
Policyholder benefits and claims
payable
$
2,543.7
$
2,717.9
Unearned premiums
19,931.3
19,802.4
Debt
2,129.4
2,129.9
Accounts payable and other liabilities
4,014.3
4,238.4
Total liabilities
28,618.7
28,888.6
Stockholders’ equity
Equity, excluding accumulated other
comprehensive loss
5,408.7
5,214.9
Accumulated other comprehensive loss
(922.7
)
(986.2
)
Total equity
4,486.0
4,228.7
Total liabilities and equity
$
33,104.7
$
33,117.3
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230801215213/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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