Assurant, Inc. · NYSE:AIZ

Assurant — Q2 2024 Earnings Presentation

36 slides from Assurant's earnings presentation, Aug 7, 2024

1. Slide 1: Investor Presentation Second Quarter 2024

   Investor Presentation Second Quarter 2024 © 2024 Assurant, Inc. All rights reserved. Company confidential. 1

2. 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

3. 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, operating strategies, valuation and similar matters, such as performance outlook, financ

4. Slide 4: First-Half 2024 Results: Operating from a Position of Strength

   First-Half 2024 Results: Operating from a Position of Strength  Performance driven by continued strength in Global Housing and Connected Living results within Global Lifestyle +20% growth $395M Adjusted EBITDA, Cash generated(2) excl. cats(1)  Strong capital position supported by +29% growth $157M

5. Slide 5: Global Lifestyle Highlights

   Global Lifestyle Highlights Global Lifestyle Adjusted EBITDA ($ millions) Flat Adjusted EBITDA Growth Year-to-Date in Connected Living, Partially Offset by Lower Auto +2% 396 397 constant Connected Living currency(1) • Expanded existing partnerships while investing in new relationships 157 144 - Com

6. Slide 6: Global Housing Highlights

   Global Housing Highlights Global Housing Adjusted EBITDA, excl. cats(1) ($ millions) Global Housing Adjusted EBITDA, excl. Cats(1), Delivered Significant Year-to-Date Growth +44% • Year-to-date performance highlights Global Housing’s unique and differentiated P&C businesses 412 Homeowners • In-force

7. Slide 7: 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 high single-digits • Expansion led by strong Global Housing growth, with modest growth Adjusted EBITDA, High single-digit $1,369 million within Global Lifestyle from Connected

8. Slide 8: 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

9. Slide 9: Assurant Represents an Attractive Investment with Meaningful Upside Opportunity

   Assurant Represents an Attractive Investment with Meaningful Upside Opportunity at a Compelling Valuation Transformed Portfolio Track Record of Winning We have transformed into a more capital- We have a track record of winning and delivering efficient and highly cash-generative company for industry

10. Slide 10: Our Approach to Sustainability

    Our Approach to Sustainability Assurant is a purpose-driven company that remains committed to integrating our sustainability efforts into our long-term strategy, with a focus on advancing Diversity, Equity, and Inclusion, Circularity, and Climate. Diversity, Equity & Inclusion Our Sustainability Vis

11. Slide 11: Enterprise Q2'24 Financial Highlights

    Adjusted EBITDA, excl. cats(1) ($ millions) Enterprise Q2’24 Financial Highlights 337 369 +10% Growth Significant Adjusted EBITDA and Adjusted EPS Growth, both excl. Cats(1) • Adjusted EBITDA, excl. cats(1), up 10% year-over-year • Adjusted EPS, excl. cats(1), up 17% year-over-year Q2'23 Q2'24 Conti

12. Slide 12: Global Lifestyle Q2'24 Financial Highlights and 2024 Outlook

    Global Lifestyle Adjusted EBITDA ($ millions) Global Lifestyle Q2’24 Financial Highlights and 2024 Outlook -4% 197 190 -2% 75 69 constant currency(1) Q2 2024 Highlights 122 120 • Adjusted EBITDA decline of (4%), or (2%) on a constant currency basis(1) − Connected Living Adjusted EBITDA down slightly

13. Slide 13: Global Auto Challenged by Industry-wide Inflation; Significant Actions Taken

    Global Auto Challenged by Industry-wide Inflation; Significant Actions Taken to Address Subset of Clients Impacted Consumer Price Index (All Items vs. Motor Vehicle Repair) • In vehicle service contracts (VSC), many clients reinsure or share in economics of business – limiting 25.0 our underwriting

14. Slide 14: Global Housing Q2'24 Financial Highlights and 2024 Outlook

    Global Housing Adjusted EBITDA, Global Housing Q2’24 Financial excl. cats(1) ($ millions) Highlights and 2024 Outlook 206 +23% 168 Q2 2024 Highlights • Adjusted EBITDA, excl. cats(1), increased 23% • Non-cat loss ratio(1) of 40% Q2'23 Q2'24 - Excluding prior period development of $17 million, non-ca

15. Slide 15: Corporate Q2'24 Financial Highlights and 2024 Outlook

    Adjusted EBITDA Loss ($ millions) Corporate Q2’24 Financial Highlights and 2024 Outlook (28) (27) Q2 2024 Highlights • Corporate Adjusted EBITDA loss of $(27)M, driven by higher net investment income from higher asset levels and yields Q2'23 Q2'24 2024 Adjusted EBITDA Loss Outlook: Approximate 2024

16. Slide 16: Significant Cash Generation & Balanced Capital Allocation Drives Shareholder Value

    Significant Cash Generation & Balanced Capital Allocation Drives Shareholder Value 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 Housing Adjusted EBITDA, incl.

17. Slide 17: 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

18. Slide 18: Appendix

    aw) ASSURANT® Appendix

19. Slide 19: 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. 19

20. Slide 20: 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 High single-digit growth (-) Depreciation Expense $(109) ~$(130) (-) Interest Expense $(108) ~$(107) (-) Taxes $(231) ~19-21% (1) Adjusted Earnings, excl. cats (million

21. Slide 21: 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) $4.6B $4.2B $0.5B $1.8B • Mobile carriers • Auto

22. Slide 22: Delivered Double-Digit Earnings and EPS Growth with Robust Cash Generation

    Delivered Double-Digit Earnings and EPS Growth with Robust Cash Generation Earnings EPS Cash Adj. EBITDA, excl. cats(1) Adj. EPS, excl. cats(1) +16% +10% ($ millions) 5-year 5-year CAGR(2) CAGR(2) $1,369 $17.13 $1,008 $1,122 $1,128 $12.28 $13.61 ~$3.9 Billion $903 $10.49 total segment $8.95 dividend

23. Slide 23: Outperforming the Broader P&C Market

    Outperforming the Broader P&C Market P&C Market Comparison(1,2) 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

24. Slide 24: 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 our anticipated future financial performance, business prospects, growth, operating strategies, valuation and similar matters, such as performance out

25. Slide 25: 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

26. Slide 26: Exhibit 2: Non-GAAP Financial Measures (Continued)

    Exhibit 2: Non-GAAP Financial Measures (Continued) (UNAUDITED) Twelve Months ($ in millions) 2023 2022 2021 2020 2019 GAAP net income from continuing operations $ 642.5 $ 276.6 $ 602.9 $ 519.4 $ 306.4 Less: Interest expense 108.0 108.3 111.8 104.5 110.6 Provision for income taxes 164.3 73.3 168.4 58

27. Slide 27: Exhibit 2: Non-GAAP Financial Measures (Continued)

    Exhibit 2: Non-GAAP Financial Measures (Continued) Twelve (UNAUDITED) 2Q Six Months Months ($ in millions) 2024 2023 2024 2023 2023 GAAP Global Housing Adjusted EBITDA $ 160.9 $ 154.6 $ 353.4 $ 223.0 $ 574.2 Reportable catastrophes, pre-tax 45.5 13.4 58.4 62.9 111.0 Global Housing Adjusted EBITDA, e

28. Slide 28: Exhibit 2: Non-GAAP Financial Measures (Continued)

    Exhibit 2: Non-GAAP Financial Measures (Continued) Adjusted Earnings per Diluted Share: Assurant uses Adjusted earnings per diluted share as an important measure (UNAUDITED) 2Q Six Months of the company’s stockholder value. Assurant defines ($ in millions) 2024 2023 2024 2023 Adjusted earnings per d

29. Slide 29: Exhibit 2: Non-GAAP Financial Measures (Continued)

    Exhibit 2: Non-GAAP Financial Measures (Continued) (UNAUDITED) 2Q Six Months 2024 2023 2024 2023 GAAP net income per diluted share $ 3.58 $ 2.90 $ 8.05 $ 5.01 Adjustments per diluted share, pre-tax: Net realized losses (gains) on investments and fair value 0.37 0.37 0.54 0.57 changes to equity secur

30. Slide 30: Exhibit 2: Non-GAAP Financial Measures (Continued)

    Exhibit 2: Non-GAAP Financial Measures (Continued) (UNAUDITED) Twelve Months ($ in millions) 2023 2022 2021 2020 2019 GAAP net income from continuing operations $ 642.5 $ 276.6 $ 602.9 $ 519.4 $ 306.4 Adjustments, pre-tax: Net realized losses (gains) on investments and fair value changes to equity s

31. Slide 31: Exhibit 2: Non-GAAP Financial Measures (Continued)

    Exhibit 2: Non-GAAP Financial Measures (Continued) (UNAUDITED) Twelve Months 2023 2022 2021 2020 2019 GAAP net income from continuing operations per diluted share $ 11.95 $ 5.05 $ 10.03 $ 8.21 $ 4.56 Adjustments per diluted share, pre-tax: Net realized losses (gains) on investments and fair value ch

32. Slide 32: 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

33. Slide 33: 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

34. Slide 34: 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

35. Slide 35: 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

36. Slide 36: 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

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