Assurant, Inc. · NYSE:AIZ
Assurant — Q3 2024 Earnings Presentation
36 slides from Assurant's earnings presentation, Nov 6, 2024
Slide 1: Investor Presentation Third Quarter 2024
Investor Presentation Third Quarter 2024 © 2024 Assurant, Inc. All rights reserved. Company confidential. 1
Slide 2: Keith Demmings and Keith Meier presenters
Keith Demmings Keith Meier President Executive Vice President & Chief Executive Officer & Chief Financial Officer © 2024 Assurant, Inc. All rights reserved. Company confidential. 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, operating strategies, valuation and similar matters, such as performance outlook, financ
Slide 4: Year-to-Date 2024: Strong Double-Digit Earnings & EPS Growth
Year-to-Date 2024: Strong Double-Digit Earnings & EPS Growth Strong year-to-date performance • Continued strength in Global Housing • Momentum in Connected Living results within Global Lifestyle +15% growth $556M Increasing 2024 Outlook Adjusted EBITDA, Cash generated(2) excl. cats(1) • Low-doub
Slide 5: Global Lifestyle Highlights
Global Lifestyle Highlights Global Lifestyle Global Lifestyle Adjusted EBITDA Relatively Flat Year-to- Adjusted EBITDA ($ millions) Date; Growth in Connected Living Offset by Lower Auto +1% Connected Living $588 $582 constant currency(1) • Opened new, state-of-the-art Innovation and Device Care Cent
Slide 6: Global Housing Highlights
Global Housing Highlights Global Housing Global Housing Adjusted EBITDA, excl. cats(1), Delivered Adjusted EBITDA, excl. cats(1) ($ millions) Significant Year-to-Date Growth • Business continues to benefit from critical competitive advantages, including scale and operational efficiencies $641 +34% H
Slide 7: 2024 Outlook: Continuing Track Record of Profitable Growth
2024 Outlook: Continuing Track Record of Profitable Growth 2023 2024 Baseline Outlook Adjusted EBITDA, excl. cats(1), to grow low double-digits • Expansion led by strong Global Housing growth Adjusted EBITDA, Low double-digit $1,369 million • Modest growth within Global Lifestyle from Connected Livi
Slide 8: Differentiated & Unique Business Model Positions Assurant for Long-term Outperformance
Differentiated & Unique Business Model Positions Assurant to Deliver Long-term Outperformance B2B2C Model Aligned with Industry Leaders Leadership Demonstrated Positions in Ability to Innovate Attractive including Add-on Markets Services Differentiated & Positioned to Unique Deliver Business Model L
Slide 9: Assurant Represents an Attractive Investment with Meaningful Upside Opportunity
Assurant Represents an Attractive Investment with Meaningful Upside Opportunity at a Compelling Valuation We have a track record of We compete in attractive, winning and delivering for growing markets with long- industry leaders and market term secular tailwinds disruptors across the globe Powerful
Slide 10: Strong Double-Digit Earnings and EPS Growth Expected with Robust Cash Generation
Strong Double-Digit Earnings and EPS Growth Expected with Robust Cash Generation Earnings EPS Cash Adj. EBITDA, excl. cats(1) Adj. EPS, excl. cats(1) ($ millions) +11% +17% 5-year 5-year CAGR(2) CAGR(2) $1,369 $17.13 ~$4.1 Billion $1,008 $1,122 $1,128 total segment $903 $12.28 $13.61 $8.95 $10.49 di
Slide 11: Reviewing CFO Priorities over the Past Twelve Months
Reviewing CFO Priorities over the Past Twelve Months Drive growth Focus on CFO strategic continued Ensure capital and financial position priorities… performance expense remains strong efficiencies Delivered Significant Results Renewed all major U.S. mobile clients, including 3 of the top 5 largest U
Slide 12: Enterprise Q3'24 Financial Highlights
Enterprise Q3’24 Financial Highlights Adjusted EBITDA, excl. cats(1) ($ millions) +8% $385 $357 Growth Strong Adjusted EBITDA and Adjusted EPS Growth, both excl. cats(1) • Adjusted EBITDA, excl. cats(1), up 8% year-over-year • Adjusted EPS, excl. cats(1), up 9% year-over-year Q3'23 Q3'24 Continued S
Slide 13: Global Lifestyle Q3'24 Financial Highlights and 2024 Outlook
Global Lifestyle Adjusted EBITDA ($ millions) Global Lifestyle Q3’24 Financial Highlights and 2024 Outlook $192 $184 -4% 71 69 -1% Q3 2024 Highlights constant • Adjusted EBITDA decline of 4%, or 1% on a constant currency basis(1) currency(1) 121 116 − Connected Living Adjusted EBITDA relatively flat
Slide 14: Global Housing Q3'24 Financial Highlights and 2024 Outlook
Global Housing Adjusted EBITDA, Global Housing Q3’24 Financial excl. cats(1) ($ millions) Highlights and 2024 Outlook $229 +20% $191 Q3 2024 Highlights • Adjusted EBITDA, excl. cats(1), increased 20% • Non-cat loss ratio(1) of 33.4% - Excluding prior period development of $45 million, non-cat loss r
Slide 15: Corporate Q3'24 Financial Highlights and 2024 Outlook
Adjusted EBITDA Loss ($ millions) Corporate Q3’24 Financial Highlights and 2024 Outlook ($30) ($26) Q3 2024 Highlights • Corporate Adjusted EBITDA loss of $(30)M, driven by higher third-party and employee-related expenses Q3 '23 Q3 '24 2024 Adjusted EBITDA Loss Outlook: Approximate 2024 Adjusted EBI
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 Dividends Common Organic Share expected to be below 2/3 Stock Investments Repurchases(2) of Global Lifestyle + Global Dividends(2) and M&A Housing Adjusted EBITDA, incl. cat
Slide 17: Differentiated & Unique Business Model Positions Assurant for 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 18: Appendix
aw) ASSURANT® Appendix
Slide 19: Investor Relations contacts
Rebekah Biondo Sean Moshier Deputy Chief Financial Officer Head of Investor Relations Matt Cafarchio Mike Robinson Investor Relations Director Investor Relations Sr. Analyst Questions? Contact: investor.relations@assurant.com © 2024 Assurant, Inc. All rights reserved. Company confidential. 19
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 Low-double-digit growth (-) Depreciation Expense $(109) ~$(135) (-) Interest Expense $(108) ~$(107) (-) Taxes $(231) ~18-20% (1) Adjusted Earnings, excl. cats (millions
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) $4.7B $4.2B $0.5B $1.9B • Mobile carriers • Auto
Slide 22: Our Approach to Sustainability
Our Approach to Sustainability Assurant is a purpose-driven company that remains committed to integrating our sustainability efforts into our long-term strategy, with a focus on advancing Diversity, Equity, and Inclusion, Circularity, and Climate. Diversity, Equity & Inclusion Our Sustainability Vis
Slide 23: Outperforming the Broader P&C Market
Outperforming the Broader P&C Market P&C Market Comparison(1,2) 2019 –2023 13% Adj. earnings, excl. cats (1) 10% 12% Adj. earnings, incl. cats (1) 8% AIZ P&C Market (1) Excludes earnings from Global Preneed and non-core businesses and, if indicated, reportable catastrophes. Refer to Exhibit 2 in the
Slide 24: Exhibit 1: Safe Harbor Statement
Exhibit 1: Safe Harbor Statement Some of the statements in this presentation, including our business and financial plans and any statements regarding our anticipated future financial performance, business prospects, growth, operating strategies, valuation and similar matters, such as performance out
Slide 25: Exhibit 2: Non-GAAP Financial Measures
Exhibit 2: Non-GAAP Financial Measures Assurant uses the following non-GAAP financial measures to analyze the company’s operating performance. Assurant’s non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. Because Assurant’s calculation o
Slide 26: Exhibit 2: Non-GAAP Financial Measures
Exhibit 2: Non-GAAP Financial Measures (UNAUDITED) Twelve Months ($ 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 58.7 148.3 Dep
Slide 27: Exhibit 2: Non-GAAP Financial Measures (Continued)
Exhibit 2: Non-GAAP Financial Measures (Continued) Twelve (UNAUDITED) 3Q Nine Months Months ($ in millions) 2024 2023 2024 2023 2023 GAAP Global Housing Adjusted EBITDA $ 92.4 $ 165.1 $ 445.8 $ 388.1 $ 574.2 Reportable catastrophes, pre-tax 136.8 26.2 195.2 89.1 111.0 Global Housing Adjusted EBITDA,
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) 3Q Nine Months of the company’s stockholder value. Assurant defines ($ in millions) 2024 2023 2024 2023 Adjusted earnings per
Slide 29: Exhibit 2: Non-GAAP Financial Measures (Continued)
Exhibit 2: Non-GAAP Financial Measures (Continued) (UNAUDITED) 3Q Nine Months 2024 2023 2024 2023 GAAP net income per diluted share $ 2.55 $ 3.54 $ 10.60 $ 8.55 Adjustments per diluted share, pre-tax: Net realized losses (gains) on investments and fair value 0.35 0.36 0.89 0.92 changes to equity sec
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
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
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
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, for Assurant and Global Housing, Adjusted EBITDA, excluding reportable catastrophes, each constitute forward-looking non-GAAP financial measures and
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
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
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