NYSE$AIZ

Assurant Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Assurant reported earnings growth in the fourth quarter and full year of 2019, driven by strong mobile results and full-year contributions from TWG.

Assurant's Q4 2019 net income was $122.9 million, or $1.98 per share, compared to $20.3 million, or $0.32 per diluted share in Q4 2018. Net operating income increased to $139.9 million, compared to $48.9 million in Q4 2018.

  • Net income increased to $122.9 million, or $1.98 per share, compared to $20.3 million, or $0.32 per diluted share for the prior year.
  • Net operating income increased to $139.9 million, compared to $48.9 million for the prior year.
  • Net earned premiums, fees and other income increased to $2.42 billion from $2.17 billion for the prior year.
  • Holding company liquidity totaled $534 million as of December 31, 2019.

Headline financials

Total Revenue

$2.61B

Previous: $2.32B+12.5%
EPS (adj)

$2.25

Previous: $0.77+192.2%
Capital Expenditures

$39.8M

Previous: $23.9M+66.5%
Free Cash Flow

$206M

Previous: $178M+15.4%
Net Income

$123M

Previous: $20.3M+505.4%
Operating Income

$179M

No prior period
Gross Profit

$2.61B

Previous: $2.31B+13.1%
Cash & Equivalents

$16.4B

Previous: $1.25B+1210.6%
Total Assets

$44.3B

Previous: $41.1B+7.8%
Stock-Based Comp

$15.2M

Previous: $18M-15.6%

Revenue & EPS history

Assurant · Revenue · Quarterly

$2.61B

Q4 2019+12.5%vs Q4 2018
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

For full-year 2020, Assurant expects net operating income per diluted share, excluding catastrophe losses, to increase 10 percent to 14 percent from $9.21 in 2019.

Tailwinds

  • Profitable growth across all business segments
  • Share repurchases
  • Modest growth in Global Lifestyle driven primarily by Connected Living, and to a lesser extent Global Automotive
  • Global Housing earnings, excluding catastrophe losses, to expand across all business lines
  • Ongoing expense efficiencies

Headwinds

  • Continued declines in legacy Global Financial Services
  • Investments to support growth
  • Previously disclosed loss of loans from a financially insolvent client
  • Corporate and Other full-year net operating loss to approximate $85 million, consistent with 2019
  • Interest expense and preferred dividends are expected to be approximately $81 million and $19 million, respectively.

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 Q4 2019

Historical avgQ4 2019

+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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