NYSE$AIZ

Assurant Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Assurant's Q2 2021 performance was driven by sustained momentum in Global Lifestyle and Global Housing businesses.

Assurant reported a strong second quarter with net income increasing by 12 percent and net operating income, excluding reportable catastrophes, up by 12 percent. The company reaffirmed its 2021 outlook of 10 to 14 percent growth in net operating income, excluding reportable catastrophes, per diluted share.

  • Net income increased 12 percent versus prior year period, while net income per diluted share increased 16 percent
  • Net operating income, excluding reportable catastrophes, up 12 percent to $183.6 million
  • Net operating income, excluding reportable catastrophes, per diluted share, up 12 percent to $2.99
  • Adjusted EBITDA, excluding reportable catastrophes, up 10 percent to $297.6 million

Headline financials

Total Revenue

$2.54B

Previous: $2.47B+2.9%
EPS (adj)

$2.99

Previous: $2.75+8.7%
Adjusted EBITDA, ex. catastrophes

$298M

No prior period
Capital Expenditures

-$85.2M

Previous: -$46.2M-84.4%
Free Cash Flow

$118M

Previous: $132M-10.4%
Net Income

$203M

Previous: $178M+14.2%
Operating Income

$1.26B

Previous: $1.14B+9.9%
Gross Profit

$2B

Previous: $1.88B+6.6%
Cash & Equivalents

$2.75B

Previous: $2.11B+30.3%
Total Assets

$46B

Previous: $44.2B+4.0%
Stock-Based Comp

$17.2M

Previous: $14.9M+15.4%

Revenue & EPS history

Assurant · Revenue · Quarterly

$2.54B

Q2 2021+2.9%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
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 net operating income, excluding reportable catastrophes, per diluted share to increase approximately 10 to 14 percent from $9.88 in 2020. Results for 2021 are expected to be driven primarily by growth within Global Lifestyle and a lower Corporate and Other loss, as well as share repurchases.

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 and Other loss.
  • Global Housing net operating income, excluding reportable catastrophes, is now expected to be roughly flat versus the prior year, as underlying growth is offset by lower REO volumes and an increase in non-catastrophe losses to more normalized levels.
  • Adjusted EBITDA, excluding reportable catastrophes, is now expected to grow at a similar rate to net operating income, excluding reportable catastrophes, with 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, fund investments and return capital to shareholders in the form of share repurchases and dividends.

Headwinds

  • Net operating income, excluding reportable catastrophes, is expected to be lower in the second half of 2021 compared to the first half of 2021, mainly due to increased investments to support long-term growth in our connected world businesses, lower investment income and increased Corporate and Other expenses due to timing of spending.
  • Global Housing net operating income, excluding reportable catastrophes, is now expected to be roughly flat versus the prior year, as underlying growth is offset by lower REO volumes and an increase in non-catastrophe losses to more normalized levels.
  • Increased investments to support long-term growth in our connected world businesses
  • Lower investment income
  • Increased Corporate and Other expenses due to timing of spending.

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 2021

Historical avgQ2 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro