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Mar 31, 2021
Assurant Q1 2021 Earnings Report
Strong performance was led by more favorable loss experience in Global Housing and continued growth in Global Automotive, Multifamily Housing and Connected Living.
Key Takeaways
Assurant reported stronger than expected first quarter results, driven by favorable loss experience in specialty P&C products and growth in Global Automotive, Multifamily Housing, and Connected Living businesses. The company increased its 2021 outlook to deliver double-digit EPS growth, excluding catastrophes.
Net income was flat versus prior year period, while net income per diluted share increased 4 percent
Net operating income, excluding reportable catastrophes, up 13 percent to $182.3 million
Net operating income, excluding reportable catastrophes, per diluted share, up 16 percent to $3.03
Adjusted EBITDA, excluding reportable catastrophes, up 14 percent to $302.2 million
Assurant
Assurant
Forward Guidance
Assurant expects net operating income, excluding reportable catastrophes, per diluted share to increase by 10 to 14 percent and Adjusted EBITDA, excluding reportable catastrophes, to increase at a modestly higher rate than net operating income, excluding reportable catastrophes.
Positive Outlook
- 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 loss.
- Adjusted EBITDA, excluding reportable catastrophes, is expected to grow at a modestly higher rate than net operating income, excluding reportable catastrophes, due to 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.
- Capital to fund investments and return capital to shareholders in the form of share repurchases and dividends, subject to Board approval and market conditions.
Challenges Ahead
- Modest declines in Global Housing net operating income, excluding reportable catastrophes, mainly from an expected increase in non-catastrophe losses to more normalized levels.
- Full-year estimate of interest expense to be approximately $90 million.
- Full-year estimate of preferred stock dividends to be approximately $5 million.
- Full-year estimate of amortization of purchased intangible assets (pre-tax) to be approximately $65 million.
- The interest expense estimate assumes no additional debt is incurred or extinguished in the forecast period and excludes after-tax interest expenses included in debt extinguishment and other related costs.