NYSE$AIZ

Assurant Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Delivered strong earnings growth in Global Lifestyle and improved performance in Global Housing.

Assurant reported strong fourth quarter segment results, demonstrating a focus on driving outperformance over the long term. The company streamlined its real estate footprint and increased efficiency in its organizational structure, while strengthening the business through targeted investments.

  • GAAP net income decreased 45 percent to $68.1 million, compared to fourth quarter 2021 of $124.0 million.
  • Adjusted EBITDA increased 9 percent compared to the prior year period.
  • Adjusted EBITDA, excluding reportable catastrophes increased 15 percent to $296.3 million.
  • Adjusted earnings, excluding reportable catastrophes, per diluted share, increased 24 percent to $3.56.

Headline financials

Total Revenue

$2.65B

Previous: $2.58B+3.0%
EPS (adj)

$3.23

Previous: $2.47+30.8%
Adjusted EBITDA

$274M

No prior period
Adjusted EBITDA, ex. catastrophes

$296M

Previous: $245M+20.7%
Capital Expenditures

$52.4M

Previous: $56.1M-6.6%
Free Cash Flow

$225M

Previous: $199M+13.1%
Net Income

$68.1M

Previous: $127M-46.3%
Operating Income

$96.3M

Previous: $162M-40.5%
Gross Profit

$2.65B

Previous: $2.57B+3.0%
Cash & Equivalents

$9.06B

Previous: $10.7B-15.4%
Total Assets

$33.1B

Previous: $33.9B-2.3%
Stock-Based Comp

$15.4M

Previous: $18.1M-14.9%

Revenue & EPS history

Assurant · Revenue · Quarterly

$2.65B

Q4 2022+3%vs Q4 2021
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 expects Adjusted EBITDA, excluding reportable catastrophes, to increase by low single-digits, with results improving as the year progresses, led by improved performance in Global Housing and more modest growth in Global Lifestyle.

Tailwinds

  • Global Housing Adjusted EBITDA, excluding reportable catastrophes, is expected to grow from revised 2022 results of $417.4 million.
  • Growth to be driven by improved performance in Homeowners reflecting higher lender-placed net earned premiums along with expense savings to be realized over the course of the year.
  • Global Lifestyle Adjusted EBITDA, is expected to grow modestly from revised 2022 results of $809.4 million.
  • Modest growth to be driven by Connected Living and Global Automotive, including contributions from new and existing client programs and expense savings realized over the course of the year.
  • Corporate and Other Adjusted EBITDA loss is expected to be approximately $105 million as the company continues to drive expense leverage.

Headwinds

  • Higher 2023 catastrophe reinsurance program costs as well as continued elevated non-catastrophe loss experience across all lines of business, particularly in the first half of 2023, are expected to impact the segment.
  • Lower contributions from international, including the impact of continued foreign exchange headwinds, are expected to pressure results particularly in the first half of 2023.
  • Adjusted earnings, excluding reportable catastrophes, per diluted share growth rate is expected to be lower than Adjusted EBITDA, excluding reportable catastrophes growth due to higher depreciation expense of approximately $114 million and a higher effective tax rate of approximately 22 to 24 percent, following a $9 million benefit in 2022.
  • Interest expense is expected to be approximately $110 million, in-line with 2022.
  • Given market conditions, capital deployment priorities to focus on maintaining a strong financial position, supporting organic growth and paying common stock dividends, subject to Board approval.

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 2022

Historical avgQ4 2022

+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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