Assurant, Inc. · NYSE:AIZ
Assurant — Q1 2024 Earnings Presentation
31 slides from Assurant's earnings presentation, May 8, 2024
Slide 1: Investor Presentation First Quarter 2024
Investor Presentation First Quarter 2024 © 2024 Assurant, Inc. All rights reserved. Company confidential. 1
Slide 2: Keith Demmings and Keith Meier
Keith Demmings Keith Meier President Executive Vice President & Chief Executive Officer & Chief Financial Officer © 2024 Assurant, Inc. All rights reserved. Company confidential. 2 2
Slide 3: Cautionary Statement
Cautionary Statement Some of the statements in this presentation, including our business and financial plans and any statements regarding our anticipated future financial performance, business prospects, growth and operating strategies and similar matters, such as performance outlook, financial obje
Slide 4: Delivered a Strong Start to 2024
Delivered a Strong Start to 2024 ✓ Performance driven by continued strength in Global Housing and +31% growth $254M growth in Global Lifestyle Adjusted EBITDA, Cash generated(2) excl. cats(1) ✓ Continued strong cash generation +42% growth $77M Adjusted EPS, Returned to excl. cats(1) Shareholders(3)
Slide 5: Differentiated & Unique Business Model Positions Assurant to Deliver Long-term Outperformance
Differentiated & Unique Business Model Positions Assurant to Deliver Long-term Outperformance B2B2C Model Aligned with Industry Leaders Leadership Demonstrated Positions in Ability to Innovate Attractive including Add-on Markets Services Differentiated & Positioned to Unique Deliver Business Model L
Slide 6: Global Lifestyle Highlights
Global Lifestyle Highlights Global Lifestyle Global Lifestyle delivered solid Adjusted EBITDA year-over- Adjusted EBITDA ($ millions) year growth led by double-digit growth in Connected Living Connected Living 208 +4% • Strong performance led by domestic mobile device protection and 199 higher inves
Slide 7: Global Housing Highlights
Global Housing Highlights Global Housing Adjusted EBITDA, excl. cats(1) ($ millions) Global Housing Adjusted EBITDA, excl. cats(1), delivered significant year-over-year growth • Q1 performance continues to highlight Global Housing’s unique and differentiated P&C businesses 205 +74% Homeowners • Impr
Slide 8: 2024 Outlook: Continuing Track Record of Profitable Growth
2024 Outlook: Continuing Track Record of Profitable Growth 2023 2024 Baseline Outlook Adjusted EBITDA, ex. cats(1), to grow mid-single-digits • Expansion led by Global Housing, as well as Global Lifestyle growth Adjusted EBITDA, Mid-single-digit • Partially offset by continued investments to support
Slide 9: Enterprise Q1'24 Financial Highlights
Adjusted EBITDA, excl. cats(1) ($ millions) Enterprise Q1’24 Financial Highlights 384 +31% Growth 293 Significant Adjusted EBITDA and Adjusted EPS growth, both excl. cats(1) • Adjusted EBITDA, excl. cats(1) up 31% year-over-year • Adjusted EPS(1) outpaced Adjusted EBITDA growth, both excl. cats Q1'2
Slide 10: Global Lifestyle Q1'24 Financial Highlights and 2024 Outlook
Global Lifestyle Adjusted EBITDA ($ millions) Global Lifestyle Q1’24 Financial 208 Highlights and 2024 Outlook +4% 199 +5% 82 75 constant Q1 2024 Highlights currency(1) • Adjusted EBITDA growth of 4%, or 5% on a constant currency 117 133 basis(1) − Connected Living Adjusted EBITDA increased 14% Q1'2
Slide 11: Global Housing Q1'24 Financial Highlights and 2024 Outlook
Global Housing Adjusted EBITDA, Global Housing Q1’24 Financial excl. cats(1) ($ millions) Highlights and 2024 Outlook 205 +74% Q1 2024 Highlights 118 • Adjusted EBITDA, excl. cats(1), increased 74% • Non-cat loss ratio(1) of 35% - Non-cat loss ratio(1) of 39%, excluding prior period Q1'23 Q1'24 deve
Slide 12: 2024 Catastrophe Reinsurance Program
2024 Catastrophe Reinsurance Program U.S. Catastrophe Reinsurance Program 2024 Program Highlights $1,630M 1-265-year • U.S. program provides ~$1.5 billion of coverage in excess of Layer 7(1) 100M xs 1,530M PML $1,530M $150 million retention(1) Layer 6 – 380M xs 1,150M • When combined with the Florid
Slide 13: Corporate Q1'24 Financial Highlights and 2024 Outlook
Adjusted EBITDA Loss ($ millions) Corporate Q1’24 Financial Highlights and 2024 Outlook (30) Q1 2024 Highlights (24) • Corporate Adjusted EBITDA loss of $(30)M, driven by higher expenses to support enterprise growth initiatives Q1'23 Q1'24 2024 Adjusted EBITDA Loss Outlook: Approximate 2024 Adjusted
Slide 14: Significant Cash Generation & Balanced Capital Allocation Drives Shareholder Value
Significant Cash Generation & Balanced Capital Allocation Drives Shareholder Value Balanced Uses of Capital Significant Cash Generation(1) 2024 Segment Common Share Organic Dividends expected to Stock Investments approximate 2/3 of Global Repurchases(2) Dividends(2) and M&A Lifestyle + Global Housin
Slide 15: Differentiated & Unique Business Model Positions Assurant to Deliver Long-term Outperformance
Differentiated & Unique Business Model Positions Assurant to Deliver Long-term Outperformance B2B2C Model Aligned with Industry Leaders Leadership Demonstrated Positions in Ability to Innovate Attractive including Add-on Markets Services Differentiated & Positioned to Unique Deliver Business Model L
Slide 16: Appendix
aw) ASSURANT? Appendix
Slide 17: Investor Relations Contacts
Rebekah Biondo Sean Moshier Matt Cafarchio Deputy Chief Financial Officer Head of Investor Relations Investor Relations Director Questions? Contact: investor.relations@assurant.com © 2024 Assurant, Inc. All rights reserved. Company confidential. 17 17
Slide 18: 2024 Outlook: Adjusted EBITDA to Adjusted Earnings Walk
2024 Outlook: Adjusted EBITDA to Adjusted Earnings Walk 2023 2024 Actuals Outlook (1) Adjusted EBITDA, excl. cats (millions) $1,369 Mid-single-digit growth (-) Depreciation Expense $(109) ~$(130) (-) Interest Expense $(108) ~$(107) (-) Taxes $(231) ~20-22% (1) Adjusted Earnings, excl. cats (millions
Slide 19: Outperforming the Broader P&C Market
Outperforming the Broader P&C Market P&C Market Comparison(2,3) 2019 –2023 13% Adj. earnings, excl. cats(1) 10% 12% Adj. earnings, incl. cats(1) 8% AIZ P&C Market (1) Excludes earnings from Global Preneed and non-core businesses and, if indicated, reportable catastrophes. Refer to Exhibit 2 in the A
Slide 20: B2B2C Model Aligned with Leaders and Long-term Winners
B2B2C Model Aligned with Leaders and Long-term Winners 15 of Top 50 most 20+ year High client retention valuable global brands partnerships across all LOBs Net earned Connected Renters & Auto Other Homeowners premiums, Living fees and other income(1) $4.5B $4.2B $0.5B $1.7B • Mobile carriers • Auto
Slide 21: Purpose-Driven Culture and Commitment to Sustainability
Purpose-Driven Culture and Commitment to Sustainability Key Goals Great Place • Ensure workforce and leadership reflect the diversity of to Work our consumers and communities across 13 Talent • Sustain strong engagement through career growth, fair and equitable markets, total rewards and wellbeing i
Slide 22: Exhibit 1: Safe Harbor Statement
Exhibit 1: Safe Harbor Statement Some of the statements in this presentation, including our business and financial plans and any statements regarding the company’s anticipated future financial performance, business prospects, growth and operating strategies and similar matters, including financial o
Slide 23: Exhibit 2: Non-GAAP Financial Measures
Exhibit 2: Non-GAAP Financial Measures Assurant uses the following non-GAAP financial measures to analyze the company’s operating performance. Assurant’s non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. Because Assurant’s calculation o
Slide 24: Exhibit 2: Non-GAAP Financial Measures (Continued)
Exhibit 2: Non-GAAP Financial Measures (Continued) Twelve (UNAUDITED) 1Q Months ($ in millions) 2024 2023 2023 GAAP Global Housing Adjusted EBITDA $ 192.5 $ 68.4 $ 574.2 Reportable catastrophes, pre-tax 12.9 49.5 111.0 Global Housing Adjusted EBITDA, excluding reportable catastrophes $ 205.4 $ 117.9
Slide 25: Exhibit 2: Non-GAAP Financial Measures (Continued)
Exhibit 2: Non-GAAP Financial Measures (Continued) Adjusted Earnings per Diluted Share: Assurant uses (UNAUDITED) 1Q Twelve Months Adjusted earnings per diluted share as an important measure ($ in millions) 2024 2023 2023 2022 2021 2020 2019 of the company’s stockholder value. Assurant defines GAAP
Slide 26: Exhibit 2: Non-GAAP Financial Measures (Continued)
Exhibit 2: Non-GAAP Financial Measures (Continued) Adjusted Earnings, Excluding Reportable (UNAUDITED) 1Q Twelve Months Catastrophes, per Diluted Share: Assurant uses 2024 2023 2023 2022 2021 2020 2019 Adjusted earnings, excluding reportable catastrophes, GAAP net income from continuing operations p
Slide 27: Exhibit 2: Non-GAAP Financial Measures (Continued)
Exhibit 2: Non-GAAP Financial Measures (Continued) Global Housing Non-Catastrophe Loss Ratio: Assurant uses the Global Housing non-catastrophe loss ratio as an important measure of the segment's operating performance. Assurant defines the Global Housing non-catastrophe loss ratio as segment policyho
Slide 28: Exhibit 2: Non-GAAP Financial Measures (Continued)
Exhibit 2: Non-GAAP Financial Measures (Continued) 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
Slide 29: Exhibit 3: Regulatory Requirements
Exhibit 3: Regulatory Requirements Assurant, Inc. is an insurance holding company, with insurance subsidiaries domiciled in a number of states in the U.S. and international jurisdictions. The ownership of our stock is subject to certain state and foreign insurance law requirements. Those are typical
Slide 30: Exhibit 4: Data Sources
Exhibit 4: Data Sources Assurant 15 of Top 50 most Source: World 100 Most Valuable Brands in 2023 by valuable global brands Visual Capitalist Global Lifestyle 7 of the top 10 global Source: Telecoms 150 2023 Ranking by Brand Finance telecommunications brands 4 of the top 5 dealer groups Source: Auto
Slide 31: Exhibit 5: Data Definition from S&P Capital IQ Market Intelligence
Exhibit 5: Data Definition from S&P Capital IQ Market Intelligence Metric Source Definition Adjusted earnings SNL (S&P Capital IQ Market Operating income after taxes: Net income after taxes, less the net Intelligence) income attributable to noncontrolling interest, after-tax realized gains, extraord