NYSE$AIZ

Assurant Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Assurant's Q4 2021 financial results were reported, demonstrating double-digit earnings growth driven by Global Lifestyle and significant capital return.

Assurant reported strong Q4 2021 results, with double-digit earnings growth led by Global Lifestyle and significant capital return. The company delivered its fifth consecutive year of profitable growth and enhanced its value proposition to clients and customers.

  • Net income increased 18 percent versus prior year period, while net income per diluted share increased 24 percent
  • Net operating income, excluding reportable catastrophes, up 11 percent to $672.0 million
  • Net operating income, excluding reportable catastrophes, per diluted share, up 14 percent to $11.26
  • Adjusted EBITDA, excluding reportable catastrophes, increased 9 percent to $1.11 billion

Headline financials

Total Revenue

$2.58B

Previous: $2.56B+0.8%
EPS (adj)

$2.47

Previous: $1.82+35.7%
Adjusted EBITDA, ex. catastrophes

$245M

Previous: $136M+79.9%
Capital Expenditures

$56.1M

Previous: $40.1M+39.9%
Free Cash Flow

$199M

Previous: $400M-50.4%
Net Income

$127M

Previous: $139M-8.8%
Operating Income

$162M

Previous: $183M-11.8%
Gross Profit

$2.57B

Previous: $2.55B+0.9%
Cash & Equivalents

$10.7B

Previous: $2.21B+385.3%
Total Assets

$33.9B

Previous: $44.6B-24.1%
Stock-Based Comp

$18.1M

Previous: $16M+13.1%

Revenue & EPS history

Assurant · Revenue · Quarterly

$2.58B

Q4 2021+0.8%vs Q4 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

In 2022, the company expects 8 to 10 percent growth in Adjusted EBITDA, excluding reportable catastrophes, driven by expansion across Global Lifestyle and Global Housing.

Tailwinds

  • Adjusted EBITDA, excluding reportable catastrophes, to grow 8 to 10 percent, driven by growth across Global Lifestyle and Global Housing.
  • Global Lifestyle Adjusted EBITDA is expected to increase by low double-digits, driven mainly by mobile in Connected Living from global expansion in existing and new clients across device protection and trade-in and upgrade programs.
  • Global Housing Adjusted EBITDA, excluding reportable catastrophes, is expected to increase by mid- to high-single digits, primarily from growth in lender-placed from higher average insured values, expense initiatives and improved results in Specialty and Other.
  • Business segment dividends to approximate three quarters of segment Adjusted EBITDA, including reportable catastrophes, which represents roughly the same historical conversion levels to the holding company.
  • Capital to be deployed to support business growth by funding investments and M&A and return capital to shareholders in the form of share repurchases and dividends, subject to Board approval and market conditions.

Headwinds

  • This will be partially offset by strategic investments to support new business opportunities including in-store mobile service and repair capabilities.
  • Corporate and Other Adjusted EBITDA loss is expected to be approximately $105.0 million, reflecting lower net investment income as compared to 2021.
  • Assurant’s consolidated effective tax rate is expected to be approximately 23 to 25 percent.
  • This is subject to the growth of the businesses, rating agency and regulatory capital requirements, investment portfolio performance and a potential increase in U.S. corporate tax rates.
  • The company expects to provide full-year 2022 outlook on a per share basis, along with its long-term financial objectives, at its Investor Day on March 24, 2022.

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 2021

Historical avgQ4 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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