Assurant, Inc. · NYSE:AIZ
Assurant — Q2 2018 Earnings Presentation
29 slides from Assurant's earnings presentation, 2018
Slide 1: Assurant Investor Overview Second Quarter 2018
Assurant Investor Overview Second Quarter 2018 © 2018 Assurant, Inc. All rights reserved. 1
Slide 2: Cautionary Statements
Cautionary Statements Some of the statements included in this presentation, particularly those anticipating future financial performance, business prospects, growth, operating synergies, performance outlook and drivers, financial objectives and profitability targets are forward-looking statements wi
Slide 3: Investment Highlights
Investment Investment Highlights Thesis Attractive portfolio of market-leading businesses in Housing and Lifestyle markets Integrated risk offerings (“more than insurance”) to drive distinct competitive advantage and attractive economics Agile and efficient operating structure Strong cash flow and d
Slide 4: Multi-year Transformation and Key Strategic Milestones
Multi-year Transformation Transformation and Key Strategic Milestones 2011 – 2015 2016 2017 2018 – Beyond Set Foundation Implement Live New Drive Profitable Organizational Operating Model Growth Realignment • Portfolio assessment • Completed portfolio • Repositioned company • Accelerate profitable g
Slide 5: Where We Play: Focused on Two Key Markets
Global Lifestyle Where We Play Focused on Two Key Markets Segment $3.8B of Last 12 Months Global Housing Revenue(1) $209M of Last 12 Months Net Segment Operating Income(3) (ex. CATs) $2.2B of Last 12 Months Revenue(1) Connected $321M of Last 12 Months Net Operating Income(2) (ex. CATs) Living Last 1
Slide 6: The Warranty Group Acquisition Update
TWG The Warranty Group Acquisition Update Spotlight • Closed the acquisition of The Warranty Group (TWG) on May 31st with integration efforts underway • Global Lifestyle results for Q2 included TWG results for the month of June, which contributed $203 million in Key revenue and $9.4 million in net o
Slide 7: Who We Serve: The World's Top Brands Trust Assurant
Who We Serve The World’s Top Brands Trust Assurant to Take Care of Their Customers 6 of the Top 10 global connected living brands Source: 2017 Best Global Brands by Interbrand 9 of the Top 10 global auto manufacturers Assurant partners with: Source: OICA Manufacturing statistics report 2015 8 of the
Slide 8: How We Win: Distinct Competitive Advantages Create Attractive Economics
How We Win Distinct Competitive Advantages Create Attractive Economics Risk and Compliance Expertise Trusted by the world’s top global brands to protect their reputation and their customers Turning Highly insights into integrated Innovations capabilities Example: Mobile Offerings Creating competitiv
Slide 9: What We Do: Aligning Resources to Greatest Growth Potential
What We Do Aligning Resources to Greatest Growth Potential Fee-Based & Capital Light Offerings Risk-Based Offerings Housing Multifamily Housing Lender-placed Insurance Renters Insurance Lender-placed Homeowners Insurance Tenant Bond Flood Insurance Manufactured Housing Receivables Management Real Es
Slide 10: Cash Flow Generation Creates Significant Flexibility
Cash-flow Cash Flow Generation Creates Significant Flexibility Generation to Drive Shareholder Value Segment Dividends(1) ($M) Capital Management Framework On average, segment dividends at or near 100% of segment earnings Strong cash flow has allowed us to pursue our growth objectives while returnin
Slide 11: Strong Track Record of Disciplined Capital Management
Capital Strong Track Record of Disciplined Capital Management Management 2004-2017 Retired ~63% of Shares Since IPO • Successfully completed $1.5B return of capital to shareholders through December 2017(1) 12% • Select acquisitions to drive growth, including 15% acquisition of The Warranty Group for
Slide 12: Second Quarter 2018 Results
Financial Second Quarter 2018 Results Performance Total Assurant • Results reflected strong organic growth in both Global Housing and Global Lifestyle, initial Q2 2018 Net Operating Income ex. CATs(1) ($M) contributions from The Warranty Group acquisition, as well as the benefit form a lower effecti
Slide 13: Global Housing
Lender-placed Multi-family Housing Mortgage Solutions Global Housing Global Housing Net Operating Income (ex. CATs) Manufactured Housing/Other Performance Metrics Key Housing Themes and Drivers Last 12 Months Revenue Share by Business(2) Last 12 Months Net Operating Income (ex. CATs)(3) • Placement
Slide 14: Global Lifestyle
Connected Living Global Automotive Global Lifestyle Global Financial Services Performance Metrics Key Lifestyle Themes and Drivers Last 12 Months Revenue Share by Business(2) Last 12 Months Net Operating Income • Mobile subscribers Connected $250 living • Repair & logistics volume Global Financial S
Slide 15: Global Preneed
United States Canada Global Preneed Performance Metrics Key Preneed Themes and Drivers Connected Last 12 Months living 0% Revenue Share Glboal by Market(1) vehicle Last 12 Months Net Operating Income protection 0% • Pre-funded funeral insurance Glboal Net earned credit/other 0% premiums written prio
Slide 16: Updated 2018 Performance Outlook
Outlook Updated 2018 Performance Outlook 2017 2018 Business Performance Metric Drivers Actual Outlook • Expect to increase 20-25% from 2017 results reflecting contributions from TWG, a lower Net operating income (ex. CATs) $413M(1) effective tax rate and modest organic growth; realize approx. $10M a
Slide 17: Shareholder Value Creation
Investment Shareholder Value Creation Thesis Customers Protect what matters most to them. Employees Best place to learn and work. Outperformance Shareholders Returning capital effectively. © 2018 Assurant, Inc. All rights reserved. 17
Slide 18: Appendix
Appendix © 2018 Assurant, Inc. All rights reserved. 18
Slide 19: Global Housing – Key Business Lines
Lender-placed Multi-family Housing Global Housing – Key Business Lines Business sold on Fee-based and Capital-light Offerings August 1st, 2018 Risk-based Offerings Multi-family Lender-placed Business Mortgage Solutions Housing Insurance Lender Placed Homeowners Renters insurance Valuation Insurance
Slide 20: Global Lifestyle – Key Business Lines
Connected Living Global Automotive Global Lifestyle – Key Business Lines Global Financial Services Fee-based and capital-light offerings Risk-based offerings Global Financial Business Connected Living Global Automotive Services Mobile: • Mobile device insurance • Repair and logistics management Exte
Slide 21: Transition to New Organizational Model to Generate Efficiencies and Fund Investments
Transition to New Organizational Model to Generate Efficiencies and Fund Investments Phase 1 Address Residual Expenses from Health and Employee Benefits • Pension freeze effective March 1, 2016 • Integration of key support functions Phase 2 Implement Business Organizational Framework • Elimination o
Slide 22: Exhibit 1: Non-GAAP Financial Measures
Exhibit 1: Non-GAAP Financial Measures Assurant uses the following non-GAAP financial measures to analyze the company’s operating performance. Because Assurant’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing Assuran
Slide 23: Exhibit 1: Non-GAAP Financial Measures
Exhibit 1: Non-GAAP Financial Measures Assurant uses the following non-GAAP financial measures to analyze the company’s operating performance. Because Assurant’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing Assuran
Slide 24: Exhibit 1: Non-GAAP Financial Measures
Exhibit 1: Non-GAAP Financial Measures Assurant uses the following non-GAAP financial measures to analyze the company’s operating performance. Because Assurant’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing Assuran
Slide 25: Exhibit 1: Non-GAAP Financial Measures
Exhibit 1: Non-GAAP Financial Measures Assurant uses the following non-GAAP financial measures to analyze the company’s operating performance. Because Assurant’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing Assuran
Slide 26: Exhibit 1: Non-GAAP Financial Measures
Exhibit 1: Non-GAAP Financial Measures Assurant uses the following non-GAAP financial measures to analyze the company’s operating performance. Because Assurant’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing Assuran
Slide 27: Exhibit 1: Non-GAAP Financial Measures
Exhibit 1: Non-GAAP Financial Measures Assurant uses the following non-GAAP financial measures to analyze the company’s operating performance. Because Assurant’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing Assuran
Slide 28: Exhibit 2: Safe Harbor Statement
Exhibit 2: Safe Harbor Statement Some of the statements included in this news release and its exhibits, particularly those anticipating future financial performance, business prospects, growth and operating strategies and similar matters including with respect to The Warranty Group and the benefits
Slide 29: Exhibit 3: Corporate Outlook
Exhibit 3: Corporate Outlook The company outlook for Corporate & Other full-year net operating loss constitutes forward-looking information and the company believes that it cannot reconcile such forward-looking information to the most comparable GAAP measure without unreasonable efforts. Many of the