NYSE$AIZ

Assurant Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Strong performance was led by more favorable loss experience in Global Housing and continued growth in Global Automotive, Multifamily Housing and Connected Living.

Assurant reported stronger than expected first quarter results, driven by favorable loss experience in specialty P&C products and growth in Global Automotive, Multifamily Housing, and Connected Living businesses. The company increased its 2021 outlook to deliver double-digit EPS growth, excluding catastrophes.

  • Net income was flat versus prior year period, while net income per diluted share increased 4 percent
  • Net operating income, excluding reportable catastrophes, up 13 percent to $182.3 million
  • Net operating income, excluding reportable catastrophes, per diluted share, up 16 percent to $3.03
  • Adjusted EBITDA, excluding reportable catastrophes, up 14 percent to $302.2 million

Headline financials

Total Revenue

$2.43B

Previous: $2.57B-5.2%
EPS (adj)

$2.47

Previous: $2.64-6.4%
Adjusted EBITDA, ex. catastrophes

$302M

Previous: $176M+71.7%
Capital Expenditures

-$39.6M

Previous: -$21.6M-83.3%
Free Cash Flow

$123M

Previous: $133M-7.3%
Net Income

$163M

Previous: $155M+5.4%
Operating Income

$1.17B

Previous: $1.05B+11.2%
Gross Profit

$1.9B

Previous: $1.96B-2.8%
Cash & Equivalents

$9.52B

Previous: $2B+377.0%
Total Assets

$44.4B

Previous: $43.4B+2.3%
Stock-Based Comp

$13.2M

Previous: $11.5M+14.8%

Revenue & EPS history

Assurant · Revenue · Quarterly

$2.43B

Q1 2021-5.2%vs Q1 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Assurant · $2.26B total across 2 segments · Q2 2020

  • Global Lifestyle
    $1.77B
  • Global Housing
    $489M

Forward guidance

Assurant expects net operating income, excluding reportable catastrophes, per diluted share to increase by 10 to 14 percent and Adjusted EBITDA, excluding reportable catastrophes, to increase at a modestly higher rate than net operating income, excluding reportable catastrophes.

Tailwinds

  • Growth in net operating income, excluding reportable catastrophes, is expected to be mainly driven by high single-digit growth in Global Lifestyle, with expansion across all lines of business, as well as a lower Corporate loss.
  • Adjusted EBITDA, excluding reportable catastrophes, is expected to grow at a modestly higher rate than net operating income, excluding reportable catastrophes, due to double-digit Adjusted EBITDA growth in Global Lifestyle.
  • Business segment dividends from Global Lifestyle and Global Housing to approximate segment net operating income, including reportable catastrophes.
  • Capital to be deployed to support business growth.
  • Capital to fund investments and return capital to shareholders in the form of share repurchases and dividends, subject to Board approval and market conditions.

Headwinds

  • Modest declines in Global Housing net operating income, excluding reportable catastrophes, mainly from an expected increase in non-catastrophe losses to more normalized levels.
  • Full-year estimate of interest expense to be approximately $90 million.
  • Full-year estimate of preferred stock dividends to be approximately $5 million.
  • Full-year estimate of amortization of purchased intangible assets (pre-tax) to be approximately $65 million.
  • The interest expense estimate assumes no additional debt is incurred or extinguished in the forecast period and excludes after-tax interest expenses included in debt extinguishment and other related costs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.8%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+2.1%

Avg return

30 days after

50%

36 / 72 earnings

Positive

+14.0%

Q2 2020

Best reaction

-13.1%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.9%+1.2%+8.5%
Q4 2025-8.6%-8.0%-7.6%
Q3 2025+1.7%+5.4%+3.9%
Q2 2025+11.3%+8.9%+11.8%
Q1 2025-0.4%+2.1%+2.9%
Q4 2024-2.6%-4.6%-0.8%
Q3 2024+7.9%+9.5%+17.9%
Q1 2024-2.2%-2.2%-4.4%
Q4 2023+4.1%+3.6%+6.2%
Q3 2023+13.7%+11.7%+14.7%
Q2 2023+6.1%+5.4%+3.6%
Q1 2023+7.3%+6.4%-1.7%
Q4 2022-1.3%+0.2%-10.0%
Q3 2022-3.6%-10.8%-5.8%
Q2 2022-11.7%-11.1%-8.4%
Q1 2022+3.3%+4.3%-0.5%
Q4 2021+9.0%+6.0%+10.9%
Q3 2021+2.5%+0.7%-5.3%
Q2 2021-1.0%+1.8%+8.5%
Q1 2021+1.0%+1.9%+2.8%
Q4 2020-5.2%+1.9%+8.6%
Q3 2020+1.6%+2.2%+5.8%
Q2 2020+14.0%+13.9%+13.7%
Q1 2020-2.1%-1.2%+10.4%
Q4 2019-0.3%+3.9%-29.5%
Q3 2019+0.7%+2.7%+3.0%
Q2 2019+9.0%+10.8%+14.5%
Q1 2019+1.7%+2.8%+10.0%
Q4 2018+0.4%+0.7%+0.7%
Q3 2018+5.6%+8.1%-4.9%
Q2 2018+1.6%+0.2%-2.5%
Q1 2018-1.9%-3.5%+4.9%
Q4 2017-0.5%-0.2%+2.6%
Q3 2017-1.0%-2.1%-1.4%
Q2 2017-1.4%-0.3%-10.1%
Q1 2017+7.5%+6.9%+3.0%
Q4 2016-7.1%-4.6%+2.6%
Q3 2016-1.2%-3.5%+4.0%
Q2 2016-4.4%-5.2%+0.0%
Q1 2016+8.0%
Q4 2015-13.1%
Q3 2015-0.8%
Q2 2015+2.0%
Q1 2015+3.3%
Q4 2014-7.3%
Q3 2014+1.4%
Q2 2014+0.0%
Q1 2014+1.2%
Q4 2013-0.7%
Q3 2013-3.6%
Q2 2013-0.8%
Q1 2013-1.4%
Q4 2012-0.5%
Q3 2012-1.6%
Q2 2012+5.2%
Q1 2012-0.4%
Q4 2011-1.4%
Q3 2011+4.2%
Q2 2011-2.2%
Q1 2011-1.8%
Q4 2010-2.9%
Q3 2010+1.9%
Q2 2010+1.2%
Q1 2009-0.9%
Q1 2010+1.6%
Q4 2007-1.4%
Q4 2009-1.4%
Q3 2009+2.1%
Q3 2008+2.1%
Q2 2009+4.2%
Q2 2008+4.2%
Q4 2008+4.2%

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