Assurant, Inc. · NYSE:AIZ
Assurant — Investor Day (March 2019)
108 slides from Assurant's investor day presentation, Mar 14, 2019
Slide 1: Assurant 2019 Investor Day
Assurant 2019 Investor Day Exhibit 99.2
Slide 2: Welcome and Introduction
Suzanne Shepherd Senior Vice President, Investor Relations Welcome and Introduction
Slide 3: Cautionary Statement
Cautionary Statement Some of the statements included in this presentation, particularly those anticipating future financial performance, business prospects, growth and operating strategies and other similar matters, including performance outlook, financial objectives and drivers, are forward-looking
Slide 4: Investor Day Agenda
Presentations by Assurant Management Delivering Outperformance Alan Colberg • President and Chief Executive Officer Financial Outperformance Richard Dziadzio • Chief Financial Officer Innovation as a Driver of Outperformance Bob Lonergan • Chief Strategy Officer Q&A Session Break Global Housing Mike
Slide 5: Delivering Outperformance
Alan Colberg President and Chief Executive Officer Delivering Outperformance
Slide 6: More than a traditional insurance business services company
More than a traditional … insurance … business services company. ASSURANT
Slide 7: Protecting major consumer purchases with leading brands
Protecting major consumer purchases … In partnership with leading brands that … Through innovative offerings … Home and Rental Car Mobile Devices Appliances Funeral Make Sell Finance Device lifecycle management Premium tech support Integrated point-of-lease billing and tracking We are a leading prov
Slide 8: Delivered Outperformance Since 2004 IPO
Delivered Outperformance Since 2004 IPO Total Shareholder Return(1) Since IPO 02/05/04 - 03/8/19 For Clients and Consumers: Protecting what matters most For Employees: Investing in talent and creating a great place to work For Communities: Building stronger, more sustainable communities (1) Total sh
Slide 9: Transformed into Stronger Company
Transformed into Stronger Company Delivered Strong Results Through Transformation… …And Well-Positioned to Drive Continued Outperformance Leadership positions in attractive markets Diversified earnings with lower catastrophe exposure Lender-placed countercyclical hedge if housing market weakens Hist
Slide 10: Track Record of Outperformance
Track Record of Outperformance
Slide 11: Transformed for Sustained Outperformance
Transformed for Sustained Outperformance 2015 2016 2017 2018 Returned to Profitable Growth Continued Profitable Growth & Strategic TWG Acquisition New Organizational Model Repositioned for continued profitable growth … … while deploying capital to drive shareholder value Portfolio Realignment Embedd
Slide 12: Repositioned For Continued Profitable Growth
Repositioned For Continued Profitable Growth Net Operating Income(1,2) ($M) Net operating income excludes catastrophes, which throughout this presentation, refers to reportable catastrophes as defined in Exhibit 2 in the Appendix. Refer to Exhibit 2 in the Appendix for information regarding non-GAAP
Slide 13: Generated Strong Cash Flow
Consists of dividends from operating subsidiaries to the holding company, as well as proceeds and capital releases from the Assurant Employee Benefits sale and Assurant Health wind-down, net of infusions. Conversion percentage equals dividends from operating subsidiaries, net of infusions, to the ho
Slide 14: Solid Progress on 2016 Investor Day Financial Objectives
Results Through 2018(1,2) Solid Progress on 2016 Investor Day Financial Objectives 4% average annual growth in net operating income, excluding TWG 13% average annual growth in operating EPS, excluding TWG 11.2% operating ROE at year-end 2018 Returned $1.8 billion to shareholders, while also investin
Slide 15: Strong Foundation to Sustain Outperformance
Strong Foundation to Sustain Outperformance
Slide 16: Delivered Superior Returns As Stock Remains Attractively Priced
AIZ Average Multiple Discount to S&P 500 = 4.1x (2) (1) Total shareholder return assumes dividends are reinvested. (2) Data listed from 01/02/15 through 03/08/19. (3) Forward price-to-earnings is listed for 01/02/15, 01/04/16, 01/03/17, 01/02/18 and 03/08/19 sourced from FactSet. Forward price-to-ea
Slide 17: Ongoing Drivers of Outperformance
Ongoing Drivers of Outperformance MACRO & CONSUMER TRENDS INNOVATIVE OFFERINGS BROAD, DIFFERENTIATED CAPABILITIES LEADING BRANDS & DISTRIBUTION PARTNERS MARKET- LEADING POSITIONS GREATER DIVERSIFICATION STRONG EARNINGS & CASH FLOW DISCIPLINED CAPITAL DEPLOYMENT
Slide 18: Deepened our Partnerships with Leading Global Brands
Deepened our Partnerships with Leading Global Brands Renewed 10 of our top clients with greater penetration of offerings Top clients’ average tenure increased from 14 to 17 years Expanded approximately 40% of our existing relationships with additional services Supported more than 100 new partners gl
Slide 19: Broadened Consumer Purchase Choice through New Distribution Channels
Broadened Consumer Purchase Choice through New Distribution Channels Since 2015 Further penetrated mortgage servicers within lender-placed Secured new partnerships with cable operators within mobile Increased collaboration with OEMs across auto and mobile, including Apple Expanded auto distribution
Slide 20: Evolved Portfolio with Strong Growth and Superior Returns
2015 $524M 2018 $676M Segment Net Operating Income(1) Growth businesses represented 53% of segment net operating income in 2018 Strong, above-market growth Less cyclical due to embedded earnings Segment net operating income for Global Housing, Global Lifestyle and Global Preneed excludes after-tax r
Slide 21: More Diversified Earnings with Lower Catastrophe Exposure
Catastrophe exposed businesses now only 36% of Assurant segment net operating income, compared to 54% in 2015(2) More Diversified Earnings with Lower Catastrophe Exposure Segment net operating income for Global Housing, Global Lifestyle and Global Preneed excludes after-tax reportable catastrophes o
Slide 22: Reinsurance Further Reduces Earnings Volatility
Reinsurance Further Reduces Earnings Volatility from Severe Catastrophe Events New 2019 reinsurance program reduces earnings impact from significant catastrophes When modeling the 2019 retention for a 1-in-20-year season, earnings projected to be $100M higher than in 2014 If an extreme, 1-in-200-yea
Slide 23: Enterprise Financial Objectives to Deliver Strong Growth and Capital Return
2019 Outlook provided as part of full-year 2018 earnings on Feb. 12, 2019. Refer to Exhibit 2 in the Appendix for information regarding non-GAAP financial measures, including reconciliations to the most directly comparable GAAP measures. Throughout the presentation, capital return includes share rep
Slide 24: Well-Positioned to Deliver Outperformance
Well-Positioned to Deliver Outperformance Attractively Priced With Multiple Levers To Drive Shareholder Value Profitable growth in attractive markets where we have leadership positions Specialty risk businesses with superior returns and cash flows Capital-light businesses with continued growth in th
Slide 25: Financial Outperformance
Richard Dziadzio Chief Financial Officer Financial Outperformance
Slide 26: Enterprise Objectives Supported by Segment Targets
Enterprise Objectives Supported by Segment Targets Enterprise Earnings Growth and Capital Return Driven by: Earnings Expansion Attractive Returns with Strong Cash Flow Generation Ongoing Expense Discipline and Leverage Segments Financial Objectives 2019-2021(1) Global Lifestyle: At least 10% average
Slide 27: Well-Positioned to Deliver Financial Outperformance
Well-Positioned to Deliver Financial Outperformance Produce diversified and predictable cash flow Generate strong earnings growth Maintain strong balance sheet Target to return $1.35B of capital to shareholders(1) STRONG EARNINGS GENERATION ROBUST CASH FLOW SOLID BALANCE SHEET DISCIPLINED CAPITAL MA
Slide 28: Enterprise Double-Digit Growth with More Diversified Earnings
Non-linear growth progression: 2019 - full year impact of TWG 2020 - modest organic growth off larger base 2021 – growth acceleration Organic growth and Operating ROE expansion Global expansion in Connected Living and Automotive Strong growth in Multifamily Housing Lender-placed stabilization Contin
Slide 29: Global Lifestyle Driving Continued Long-Term Growth
Global Lifestyle Driving Continued Long-Term Growth Connected Living and Auto profitable growth Management of legacy business Continued expense management and investments to support growth Non-linear growth progression: 2019 - full year impact of TWG 2020 - modest organic growth off larger base 2021
Slide 30: Global Housing Producing Strong Returns on Capital
2019-2021 Objective 2018 Reported 2018 with Average CAT Load(1) Key Business Drivers: Considerations: Global Housing Producing Strong Returns on Capital 9.9% 16.3% 17-20% Operating ROE expansion: Strong growth in Multifamily Housing and other specialty products Stabilization of lender-placed earning
Slide 31: Global Preneed Generating Steady Earnings and Strong Returns
Operating ROE Global Preneed Generating Steady Earnings, Strong Returns on Capital and Cash Flow Growth from pre-funded funeral products and other ancillary offerings Growing investment income portfolio Stable contributor with predictable earnings and relatively low mortality risk Statutory earnings
Slide 32: Realizing Expense Savings to Fund Growth
Realizing Expense Savings to Fund Growth and Drive Additional Leverage Digital, Data, Artificial Intelligence, Customer Experience Capability investments Technology Systems upgrade, cyber security Business Lines Product and platform enhancement Support Areas Procurement, risk Realized $75M of $100M
Slide 33: Robust and Diversified Cash Flows
Robust and Diversified Cash Flows Provide Stability and Predictability ~100% of segment earnings expected to be distributed to Holding Company More balanced portfolio creates diversified source of cash flows Growth in less capital intensive businesses generates more predictable cash flows over time
Slide 34: Disciplined Balance Sheet Management
Disciplined Balance Sheet Management with Commitment to Maintain Investment Grade Rating Balance Sheet Strength is Driven by Clear Risk Appetite, Framework and Modeling Capabilities Risk Profile Robust catastrophe reinsurance Short-tail P&C liabilities Risk sharing with clients Strong financial stre
Slide 35: Significant Value Created by Capital Discipline
2004 - 2018 Significant Value Created by Capital Discipline Significant Share Repurchase Since IPO(2) Consistently Increased Common Stock Dividend Since IPO Capital Management Principles Invest in business to drive sustained innovation and growth Select tuck-in acquisitions Maintain investment grade
Slide 36: Capital Deployment Strategy
Capital Deployment Strategy Creates Balance Between Shareholder Returns and Growth Strong cash flows providing flexibility: Fund organic growth Strategic tuck-in acquisitions Share repurchases Common stock dividends Share Repurchases Common Stock Dividends Acquisitions/ Organic Growth 2019-2021 Capi
Slide 37: Strong EPS Growth from Earnings Expansion and Capital Deployment
Operating EPS(1) Double-digit growth in net operating income, inclusive of TWG Impact of TWG acquisition-related share issuance Additional catastrophe reinsurance purchase Non-linear trends as net operating income growth and share repurchase impact are fully realized Acceleration expected in 2021 Ea
Slide 38: Delivering Outperformance through Earnings Growth and Capital Deployment
STRONG EARNINGS GENERATION ROBUST CASH FLOW SOLID BALANCE SHEET DISCIPLINED CAPITAL MANAGEMENT Compelling Enterprise Financial Objectives Growth in Operating EPS Expanded earnings within targeted areas Greater diversification of cash flows Disciplined growth and operating ROE expansion Expect to Ret
Slide 39: Innovation as a Driver of Outperformance
Bob Lonergan Chief Strategy Officer Innovation as a Driver of Outperformance
Slide 40: Innovation as Driver of Outperformance
Innovation as Driver of Outperformance Portfolio of businesses with leadership positions and attractive growth prospects Demonstrated track record of innovation Ability to use multiple levers to drive and access innovation New opportunities emerging in Connected Devices, Connected Car and Connected
Slide 41: Portfolio of Market-leading Businesses with Attractive Growth Prospects
Portfolio of Market-leading Businesses with Attractive Growth Prospects Mobile Refurbed devices, Internet of Things and 5G upgrades Auto Preneed Multifamily Housing Lender-placed Insurance Stable overall car sales in U.S. Household formation Mortgage originations growing again Favorable demographics
Slide 42: Multiple Levers for Growth and Innovation
Multiple Levers for Growth and Innovation Acquisitions to deepen footprint and capabilities or scale targeted businesses Enterprise research and development funding with business investments Partnerships to secure complementary solutions or capabilities and to increase speed-to-market Invest in earl
Slide 43: Internal R&D Innovation Addressing Consumer Needs
Internal R&D Innovation Addressing Consumer Needs and Creating New Profit Pools Evolution Since 2015 Example Deepen offerings beyond insurance Embedded AppleCare Services Digital self-service Product Innovation Capability Innovation Dynamic claims fulfillment Integrated point-of-lease billing and tr
Slide 44: Assurant Growth Investing Provides External Innovation
Assurant Growth Investing (AGI) Provides Another Vehicle for External Innovation Since 2015, invested approximately $75M in 16 companies Target venture and growth stage technology-enabled businesses that are strategically relevant Where applicable, pursue commercial opportunities with businesses Par
Slide 45: Building Differentiated Solutions within Connected Living
Building Differentiated Solutions within Connected Living Financing Device Protection Innovation Lever AppleCare Related Products Trade-In/ Upgrade Asset Disposition Repair and Logistics Personal Tech Pro and Pocket Geek Digital ID Internal R&D Acquisitions(1) Venture Capital Investments(2) Connecte
Slide 46: Launching New Business to Support Sharing Economy
Shared Mobility On-demand Delivery Vacation Rental Protects short-duration rentals: property, contents and liability Provides episodic vehicle collision and liability protection for ride sharing, fleet-OEM car sharing, vehicle subscription models Protects on-demand delivery clients with excess and c
Slide 47: Global Automotive Offering for Connected Car
Provide a better car ownership experience for consumers and drive greater loyalty toward dealers Digital Glovebox Personal Mechanic Support Roadside Assistance Vehicle Health Scanner Maintenance Manager Wi-Fi Hotspot Services and Discounts SOS Alerts Driving Behavior Theft Protection Benefit Global
Slide 48: Connected Car platform with Mojio
Dealer relationships Finance and Insurance (F&I) bundling Personal Mechanic Personal TechPro Pocket Drive Leveraged Assurant Expertise with AGI Investment and Partnership In-App offers Theft benefit Consumer insights and data analytics Leading Connected Car platform 2018 investment strengthened mutu
Slide 49: Evolving Auto Offerings, Distribution and Capabilities
Addressing pain points for clients and end-consumers: Volume for service shops Digital disruption Utilization of auto inventory Inability to sell another Finance and Insurance product / disrupt current process Evolving Auto Offerings, Distribution and Capabilities to Create Greater Value for Clients
Slide 50: Emerging Opportunities within Connected Home
Emerging Opportunities within Connected Home Connected Home Large, rapidly growing, global market for smart home devices and related services Existing partners extending into smart home as consumers becoming increasingly connected across mobile, auto and home Significant consumer pain points around
Slide 51: Leveraging Outside Partners to Augment AI Capabilities
Leveraging Outside Partners to Augment AI Capabilities and Accelerate Operational Transformation Partnering with third-party experts across: AGI investment benefitted us by introducing us to relevant partners… Machine Learning for Fraud/ Subrogation Automated Machine Learning Tool Machine Learning I
Slide 52: Transforming Operations to Drive Efficiency
Transforming Operations to Drive Efficiency and Better Customer Experience Increasing Self-Service Adoption through: E-PASS (Expedited Policy Automation and Self-Service) with SMS, Picture and Video Live Chat and Chatbot functionality to reduce calls Expanding Dynamic Claims Management across Assura
Slide 53: Innovation as Key Driver of Future Outperformance
Innovation as Key Driver of Future Outperformance Multiple levers to create and access innovation Evolving needs around connected lifestyle creates significant future opportunity Existing capabilities and relationships position us well to capitalize on growth opportunities where we have a path to su
Slide 54: Global Housing
Mike Campbell President, Global Housing Global Housing Kathy McDonald President, Global Specialty
Slide 55: Three Lines Of Business
Three Lines Of Business Helping customers protect their properties Renters insurance Policy tracking and compliance Tenant Bond Bad debt recovery Manufactured Housing Flood insurance (NFIP) Small Commercial Property Antique Auto Sharing economy(1) Homeowner insurance tracking and compliance Lender-p
Slide 56: Global Housing: Delivering Outperformance
Global Housing: Delivering Outperformance Above-market revenue growth in multifamily housing Long-tenured relationships with low attrition Stabilizing lender-placed business New profit pools from specialty businesses Lower earnings volatility from reduced catastrophe exposure Strong cash flows Indus
Slide 57: Strong Relationships with Market Leaders Driving Growth
Strong Relationships with Market Leaders Driving Growth Banks & Mortgage Servicers Property Management Companies (PMC) Independent P&C Agents Affinity Insurance Partners 8 of the top 10 largest mortgage servicers Average length of contracts with top clients is 3-5 years 6 of the top 10 clients have
Slide 58: Expanded Offerings Drive Profitable Growth and Diversification
Expanded Offerings Drive Profitable Growth and Greater Diversification Global Housing net operating income of $424M in 2013 and $151M in 2018 adjusted to exclude $19M and $170M of after-tax reportable catastrophes. Other includes disposed Mortgage Solutions business. Multifamily Housing, Specialty a
Slide 59: Managing Catastrophe Exposure to Support More Predictable Earnings
Managing Catastrophe Exposure to Support More Predictable Earnings 2019 reduction in per-event catastrophe retention with increased multi-year coverage Reduces volatility in severe storm seasons Increased multi-year reinsurance from 28% in 2018 to 36% in 2019, adding stability at attractive pricing
Slide 60: Worst Years of Storms Recast with 2019 Retention
10 Worst Years of Storms Since 1900 Recast with 2019 $80M Per-Event Catastrophe Retention New 2019 Reinsurance to Protect in Severe Storm Seasons Gross Losses Net Losses Catastrophe Losses ($M) Numbers are all pre-tax and based on 2019 exposure levels and reinsurance program; net losses include rein
Slide 61: Maintain Industry-Leading Returns with Earnings Growth
Maintain Industry-Leading Returns with Earnings Growth Continued strong profitability supported by expanding ROE and expected combined ratio of 86-90%, including average catastrophes Stabilized lender-placed insurance business Growth in multifamily housing and specialty Ongoing expense efficiencies
Slide 62: Lender-placed Insurance
Lender-placed Insurance @ ASSURANT®
Slide 63: Successfully Navigated Lender-placed Market Normalization
Lender-placed Net Operating Income(2) and Placement Rate % Successfully Navigated Lender-placed Market Normalization Continue to play valuable role in homeownership Navigated market normalization Industry delinquency rates below historic averages(1) Assurant placement rate decline moderating: 1.63%
Slide 64: Well-Positioned Should U.S. Housing Market Weaken
Well-Positioned to Meet Policyholder Needs Should U.S. Housing Market Weaken In Housing Downturn, Global Housing Expects… Stabilization in 2019: Current Housing Market Placement rate declines moderating Premium rates to reflect loss experience and expenses Lender-placed outlook flat, excluding addit
Slide 65: Next Generation Tracking Platform
Next Generation Tracking Platform Expected to Deliver Efficiencies and Better Experience SingleSourceProcessingSM : Proprietary platform that consolidates information from disparate systems and applications Expected Benefits Holistic view of a customer’s loan, property and policy information, all in
Slide 66: Multifamily Housing
Multifamily Housing @ ASSURANT®
Slide 67: Vertically Integrated Capabilities Address Unique Customer Needs
Client Marketing Client Sales Optimization Customer Service and Claims Product Development Underwriting Systems Integration Legal and Compliance Vertically Integrated Capabilities Address Unique Customer Needs Drives differentiation and value to clients and end-consumers Superior customer experience
Slide 68: Integrated Solutions Across Resident Lifecycle
Lower Move-in Cost Integrated Solutions Across Resident Lifecycle Resident Benefits Easy, Convenient Purchase Maintain Protection Accommodating Process and Payment Options Increase Occupancy; Reduce Administrative Tasks Client Benefits Move Out Move In Reduce Risk Exposure and Guaranteed Acceptance
Slide 69: Delivering Outperformance in Multifamily Housing
Delivering Outperformance in Multifamily Housing Benefitted from continued growth as rental households grew(1) Aligned with long-tenured PMC and affinity clients with expanding share Expanded offerings to provide end-to-end solutions Invested in digital platform to deliver superior customer experien
Slide 70: Increased Resident Participation Drives Multifamily Growth
2018 Increased Resident Participation and Expanded Distribution Drives Multifamily Housing Growth Profitable growth driven by: 8-10% CAGR Continued above-market revenue CAGR of 8-10%: Increase participation rate via integrated point-of-lease platform Further enhance customer experience to grow new c
Slide 71: Point-of-Lease Platform
Options to pay insurance with rent Policy monitoring and follow up Seamless integration with leasing process Point-of-Lease Platform: Convenient for Renters, Reduces Risk for Property Managers Participation rates nearly double Added Convenience For Resident Less Work and Less Risk for PMCs Easy sign
Slide 72: New Technology Enhances Claims Experience
New Technology Enhances Claims Experience While Driving Increased Efficiency Enhanced Productivity And Efficiency Better Customer Experience Easy smartphone interface Faster claims handling Increased satisfaction and Net Promoter Score Straight-through processing of select claims Less manual work fo
Slide 73: Global Housing to Deliver Strong Operating ROE
Global Housing to Deliver Strong Operating ROE with More Predictable Earnings Positioned for long-term growth with above-market returns and strong cash flows More diversified earnings with lower catastrophe exposure Sustained leadership in lender-placed with upside potential if housing market weaken
Slide 74: Global Lifestyle
Keith Demmings President, Global Lifestyle Global Lifestyle
Slide 75: Three Lines Of Business
Three Lines Of Business Mobile protection Device lifecycle solutions Extended service contracts Technical support and service Credit protection Card member benefits Ancillary products Travel benefits Vehicle service contracts Guaranteed asset protection Ancillary products Connected car services Glob
Slide 76: Global Lifestyle: Delivering Outperformance
Global Lifestyle: Delivering Outperformance Double-digit earnings growth over multi-year period Strong growth in mobile globally; sustained performance in auto New profit pools and more diversified, embedded earnings Deeper, broader client relationships Improved operational efficiency and scale, fun
Slide 77: TWG Value Realization On Track
TWG Value Realization On Track Leading Global Automotive provider with increased diversification Generating strong growth with higher embedded earnings Successfully integrated operations, retaining key clients and employees Already achieved more than half of targeted run-rate synergies Modestly accr
Slide 78: Deepened Global Footprint in Key Markets
Deepened Global Footprint in Key Markets to Support Continued Profitable Growth Significantly grew revenue and earnings Established profitable business in Japan Invested in global mobile supply chain Consolidated support functions to align with global operating model Implemented expense management a
Slide 79: Global Lifestyle Well-Positioned for Continued Profitable Growth
Key Drivers: At Least 10% Average Annual Growth Global Lifestyle Well-Positioned for Continued Strong Profitable Growth Mobile growth driven by product innovation and new capabilities Extension of auto leadership in U.S. and key markets Continued investments to support growth and efficiency while ma
Slide 80: Connected Living
Connected Living an) a Ww ASSURANT?®
Slide 81: Connected Living: Track Record of Double-Digit Earnings Expansion
Connected Living: Track Record of Double-Digit Earnings Expansion Key Drivers: Favorable market trends driving higher attachment rates Continued share gains through alignment with market leaders and new entrants New clients and offerings driving subscriber growth and creating new profit pools Embedd
Slide 82: Evolving Consumer Dynamics Driving Demand for Mobile Protection
Differentiated Products and Evolving Consumer Dynamics Driving Demand for Mobile Protection Services Increasing smartphone prices driving demand for device protection products and services Longer customer ownership and upgrade cycle drives higher attachment rates Consumer dependency and device compl
Slide 83: Continue to Expand Offerings Beyond Insurance
Continue to Expand Offerings and Profit Pools Beyond Insurance AppleCare Related Products Repair and Logistics Asset Disposition Trade-In/ Upgrade Personal TechPro and Pocket Geek Digital ID Since 2015: Program Administration Strengthened core capabilities Strengthened core capabilities and enhanced
Slide 84: Vertically-Integrated Device Lifecycle Management
Repair and Logistics Vertically-Integrated Device Lifecycle Management Differentiates Offering and Adds Profit Pools World-class facilities with 1,700 technicians Invested in automation, robotics and analytics Fast, convenient repair options for consumers Weekend claims fulfillment Same-unit repair
Slide 85: Integrated Solutions Drive Customer Loyalty and Retention
Integrated Solutions Drive Customer Loyalty and Retention and Lower Program Costs Proprietary pricing engine maximizes trade-in value Trade-in and Upgrade supported by our rapid global disposition channels Global Trade-In and Upgrade platform in multiple markets World-Class Platform and Processes Cr
Slide 86: Premium Tech Support with On-Device Diagnostics
Premium Tech Support Solution with On-Device Diagnostics Device onboarding and tech support Accessed through Pocket Geek, on-device diagnostic app Atlanta Tech Support Center supporting all consumer connected devices Significant client deployments 98% resolution rate 4.8 out of 5-star rating = 96% s
Slide 87: Partnerships and Renewals Underscore Success in Key Markets
Partnerships and Renewals Underscore Success in Key Markets Successfully building presence in Japanese market Strengthened partnership for the future Second largest mobile handset protection market in the world representing $4B in GWP Expansion based on client launch Secured important relationship w
Slide 88: Global Automotive
Global Automotive @ ASSURANT®
Slide 89: Leading Global Automotive Franchise Driving Above-Market Growth
Leading Global Automotive Franchise Driving Above-Market Growth Leader with strong track record of growth: 2015-2018 organic revenue CAGR of 14% 2015-2018 organic earnings CAGR of 9% Broad set of innovative and differentiated product offerings and capabilities Superior growth with leading brands acr
Slide 90: Global Automotive Favorable Market Dynamics
Global Automotive Favorable Market Dynamics Opportunity to grow within large, but fragmented U.S. market Equal balance of new and used car sales drives stability regardless of economic cycle Large market opportunity outside the U.S. Non-U.S. represents only 8% of Global Automotive contracts and net
Slide 91: Increasing Demand for Vehicle Service Contracts
Increasing Demand for Vehicle Service Contracts Increased demand for vehicle service contracts (VSC) driven by longer ownership and loan terms Auto technology and complexity drives increasing value of protection products F&I products represent a greater portion of dealers’ economics 25% of total dea
Slide 92: Leading Positions Across All Major Distribution Channels
Leading Positions Across All Major Distribution Channels 6 of the top 10 U.S. National Dealer Groups 7 of the 10 top 10 U.S. third-party administrators 9 of the top 10 Global Auto OEMs with international growth opportunity Emerging partners with online car sales, fleet operators and car sharing Niss
Slide 93: Greater Predictability with Significant Embedded Earnings
Greater Predictability with Significant Embedded Earnings Embedded Value Unearned Embedded Revenue of $7.8 Billion is ~4x 2018 Global Automotive Revenue Global Automotive 2018 Unearned Premium by Vintage Year(1) Net of ceded unearned premium of $2.4 billion. Significant unearned premium reserves tha
Slide 94: Fee-Based, Capital-Light Business Model
Fee-Based, Capital-Light Business Model Fee-based Deal Structures We receive stated fees for performing all services, with financial risk significantly mitigated Reduced Volatility Typical client contracts are built to reduce financial exposure to claims volatility, with a significant portion of our
Slide 95: Operational Initiatives to Drive Innovation and Efficiencies
More consistent delivery of our value proposition and scale for global expansion Operational Initiatives to Drive Innovation, Efficiencies and Superior Customer Experience Innovative New Technology Data Analytics and Digital Global Claims Administration System State-of-the-art, cloud-based system de
Slide 96: Global Lifestyle to Continue to Deliver Superior Growth
Track record of double-digit earnings growth over time Momentum across Connected Living and Global Automotive Robust portfolio of innovative offerings, broad distribution and alignment with leaders Leader in enabling emerging connected consumer lifestyle Global Lifestyle to Continue to Deliver Super
Slide 97: Concluding Remarks
Alan Colberg President and Chief Executive Officer Concluding Remarks
Slide 98: Drivers of Outperformance
Drivers of Outperformance MACRO & CONSUMER TRENDS INNOVATIVE OFFERINGS BROAD, DIFFERENTIATED CAPABILITIES LEADING BRANDS & DISTRIBUTION PARTNERS MARKET- LEADING POSITIONS GREATER DIVERSIFICATION STRONG EARNINGS & CASH FLOW DISCIPLINED CAPITAL DEPLOYMENT
Slide 99: Delivering Sustained Outperformance
Delivering Sustained Outperformance INNOVATIVE OFFERINGS BROAD, DIFFERENTIATED CAPABILITIES LEADING BRANDS & DISTRIBUTION PARTNERS MARKET- LEADING POSITIONS GREATER DIVERSIFICATION Even stronger portfolio of businesses with leadership positions and attractive growth prospects Deeper partnerships wit
Slide 100: Assurant in 2021
Assurant in 2021 GREATER DIVERSIFICATION STRONG EARNINGS & CASH FLOW DISCIPLINED CAPITAL DEPLOYMENT Outperformance Delivered 12% average annual growth in Operating EPS, excluding catastrophes Double-digit average annual net operating income growth, excluding catastrophes Return $1.35B of capital to
Slide 101: Appendix
Appendix @ ASSURANT®
Slide 102: Exhibit 1: Safe Harbor Statement
Exhibit 1: Safe Harbor Statement Some of the statements in this presentation are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, particularly those anticipating future financial performance, business prospects, growth and operating strategi
Slide 103: Exhibit 2: Non-GAAP Financial Measures
Exhibit 2: Non-GAAP Financial Measures (1) Net operating income equals net income attributable to common stockholders, excluding Assurant Health runoff operations, net realized (losses) gains on investments, amortization of deferred gains on disposal of businesses (including Assurant Employee Benefi
Slide 104: Exhibit 2: Non-GAAP Financial Measures (Continued)
Exhibit 2: Non-GAAP Financial Measures (Continued) (2) Net operating income, excluding reportable catastrophes and TWG, per diluted share equals net operating income, excluding reportable catastrophes (defined above) and the net impact of TWG divided by weighted average diluted shares outstanding, e
Slide 105: Exhibit 2: Non-GAAP Financial Measures (Continued)
Exhibit 2: Non-GAAP Financial Measures (Continued) (3) Operating ROE, excluding AOCI and reportable catastrophes, equals net operating income (as defined above) for the period presented divided by average common stockholders’ equity, excluding AOCI and reportable catastrophes (defined above), for th
Slide 106: Exhibit 2: Non-GAAP Financial Measures (Continued)
Exhibit 2: Non-GAAP Financial Measures (Continued) (5) Global Lifestyle international net earned premiums, fees and other income, as adjusted, is adjusted to annualize net earned premiums, fees and other income from TWG, which was acquired on May 31, 2018. The company believes this metric provides i
Slide 107: Exhibit 3: Data Sources
Exhibit 3: Data Sources 9 of the top 10 global auto manufacturing brands Source: 2018 Best Global Brands by Interbrand 6 of the top 10 global connected living brands Source: 2018 Best Global Brands by Interbrand 8 of the top 10 largest mortgage servicers in the US Source: Internal Management informa
Slide 108: Exhibit 3: Data Sources (Continued)
Exhibit 3: Data Sources (Continued) P&C average based on 54 companies using ROE based on net income or where possible, net operating income. Companies with market capitalization less than $100M were excluded. Source: Bloomberg