NYSE$AIZ

Assurant Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Significant earnings and EPS growth was driven by continued strong performance in Global Housing and growth in Global Lifestyle.

Assurant reported exceptionally strong results for Q3 2023, outperforming expectations. Global Housing's top-line momentum and improving loss experience, combined with Global Lifestyle's growing U.S. mobile business, produced significant year-over-year earnings growth.

  • GAAP net income increased to $190.1 million, compared to $7.3 million in Q3 2022, with net income per diluted share increasing to $3.54 versus $0.14 in the prior year period.
  • Adjusted EBITDA, excluding reportable catastrophes, increased to $357.1 million, compared to $239.6 million in Q3 2022.
  • Adjusted earnings, excluding reportable catastrophes, per diluted share, increased to $4.68, compared to $2.81 in Q3 2022.
  • Holding company liquidity was $491 million; $87 million was returned to shareholders via share repurchases and common stock dividends in the quarter.

Headline financials

Total Revenue

$2.77B

Previous: $2.55B+8.9%
EPS (adj)

$4.29

Previous: $1.01+324.8%
Adjusted EBITDA

$331M

Previous: $116M+185.1%
Adjusted EBITDA, ex. catastrophes

$357M

Previous: $240M+49.0%
Capital Expenditures

$50.4M

Previous: -$134M+137.6%
Free Cash Flow

$280M

Previous: -$127M+321.2%
Net Income

$190M

Previous: $7.3M+2504.1%
Operating Income

$229M

Previous: $108M+112.8%
Gross Profit

$2.77B

Previous: $926M+199.6%
Cash & Equivalents

$1.43B

Previous: $1.43B-0.3%
Total Assets

$26.5B

Previous: $33.2B-20.2%
Stock-Based Comp

$23.9M

Previous: $17.9M+33.5%

Revenue & EPS history

Assurant · Revenue · Quarterly

$2.77B

Q3 2023+8.9%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

The company now expects Adjusted EBITDA, excluding reportable catastrophes, to increase mid- to high-teens, driven by significant growth in Global Housing, partially offset by a modest decline in Global Lifestyle. Adjusted earnings, excluding reportable catastrophes, per diluted share growth rate to exceed the growth rate in Adjusted EBITDA, excluding reportable catastrophes, due to higher earnings growth, a lower effective tax rate and the impact of share repurchases.

Tailwinds

  • Adjusted EBITDA, excluding reportable catastrophes, to increase by mid- to high-teens.
  • Global Housing Adjusted EBITDA, excluding reportable catastrophes, to grow significantly, driven by strong performance in Homeowners reflecting higher lender-placed net earned premiums, improving non-catastrophe loss experience including favorable prior period reserve development, and continued expense savings.
  • Growth rate of Adjusted earnings, excluding reportable catastrophes, per diluted share to exceed growth in Adjusted EBITDA, excluding reportable catastrophes driven by higher earnings, a lower effective tax rate and the impact of share repurchases.
  • Business segment dividends to approximate 65% of segment Adjusted EBITDA, including reportable catastrophes, which takes into account the extended restructuring plan.
  • Capital deployment priorities to focus on maintaining a strong financial position, supporting business growth by funding investments and M&A, and returning capital to shareholders through common stock dividends and share repurchases, subject to Board approval.

Headwinds

  • Global Lifestyle Adjusted EBITDA, to decline modestly, largely driven by Global Automotive from elevated claims costs and lower contributions within Asia Pacific, including softer volumes and the impact of foreign exchange.
  • Corporate and Other Adjusted EBITDA loss to be approximately $105 million as the company continues to drive expense leverage.

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 Q3 2023

Historical avgQ3 2023

+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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