NYSE$AIZ

Assurant Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Assurant's Q2 2020 financial results demonstrated business resilience and stability, driven by Global Lifestyle and favorable non-catastrophe loss experience. The company reinstated and raised its 2020 outlook, expecting 12 to 16 percent growth in net operating income per share, excluding catastrophe losses.

Assurant reported strong second-quarter results, demonstrating business resilience and stability. Net income increased by 24 percent, and net operating income, excluding reportable catastrophes, rose by 24 percent. The company reinstated and raised its 2020 outlook, expecting 12 to 16 percent growth in net operating income per share, excluding catastrophe losses.

  • Net income of $173.5 million, or $2.81 per share, up 24 percent and 27 percent, respectively
  • Net operating income of $169.3 million, or $179.3 million, excluding reportable catastrophes, up 15 percent and 24 percent, respectively
  • Net operating income per diluted share of $2.75, or $2.90, excluding reportable catastrophes, up 18 percent and 27 percent, respectively
  • $357 million of holding company liquidity available at quarter end

Headline financials

Total Revenue

$2.47B

Previous: $2.55B-2.9%
EPS (adj)

$2.75

Previous: $2.34+17.5%
Adjusted EBITDA

$179M

Previous: $145M+24.0%
Capital Expenditures

-$46.2M

Previous: -$57.8M+20.1%
Free Cash Flow

$132M

Previous: $86.3M+52.8%
Net Income

$178M

Previous: $144M+23.6%
Operating Income

$1.14B

Previous: $1.01B+13.1%
Gross Profit

$1.88B

Previous: $1.86B+1.1%
Cash & Equivalents

$2.11B

Previous: $1.49B+41.4%
Total Assets

$44.2B

Previous: $43.1B+2.5%
Stock-Based Comp

$14.9M

Previous: $14.2M+4.9%

Revenue & EPS history

Assurant · Revenue · Quarterly

$2.47B

Q2 2020-2.9%vs Q2 2019
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

The company expects Assurant net operating income per diluted share, excluding catastrophe losses, to increase 12 percent to 16 percent from $9.21 in 2019.

Tailwinds

  • Driven primarily by profitable growth
  • Ongoing expense discipline
  • Growth in Connected Living
  • Improved results in specialty and other
  • Growth in multifamily

Headwinds

  • Material change to consumer behavior
  • Access to distribution channels
  • Impact to financial markets from a resurgence of COVID-19 cases
  • Continued declines in legacy Global Financial Services and investments to support growth
  • Loss of loans from a financially insolvent client and lower real estate owned volumes in lender-placed

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 Q2 2020

Historical avgQ2 2020

+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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