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Mar 31, 2024
Assurant Q1 2024 Earnings Report
Assurant reported strong Q1 2024 financial results, driven by Global Housing and Global Lifestyle growth.
Key Takeaways
Assurant's first quarter performance showed a strong start to 2024, with Global Housing delivering exceptional results and continued momentum in the U.S. Connected Living business within Global Lifestyle. GAAP net income increased by 108 percent to $236.4 million, and adjusted EBITDA, excluding reportable catastrophes, increased by 31 percent to $383.7 million.
GAAP net income increased 108 percent to $236.4 million, compared to the prior year period.
Adjusted EBITDA, excluding reportable catastrophes, increased 31 percent to $383.7 million.
Adjusted earnings, excluding reportable catastrophes, per diluted share, increased 42 percent to $4.97.
Holding company liquidity was $622 million; returned $77 million to shareholders via share repurchases and common stock dividends.
Assurant
Assurant
Forward Guidance
The company expects Adjusted EBITDA, excluding reportable catastrophes, to increase by mid-single-digits, led by growth in Global Housing and Global Lifestyle. Adjusted earnings, excluding reportable catastrophes, per diluted share growth rate is expected to approximate the growth rate in Adjusted EBITDA, excluding reportable catastrophes.
Positive Outlook
- Adjusted EBITDA, excluding reportable catastrophes, to increase by mid-single-digits, led by growth in Global Housing, as well as in Global Lifestyle.
- Global Housing Adjusted EBITDA, excluding reportable catastrophes, to increase, mainly driven by improving non-catastrophe loss experience, top-line growth in Homeowners, and lower catastrophe reinsurance premiums.
- Global Lifestyle Adjusted EBITDA to increase, mainly driven by organic growth and improved profitability in Connected Living programs.
- Global Automotive is expected to grow modestly primarily from higher investment income, with rate actions expected to drive improvement over time.
- Adjusted earnings, excluding reportable catastrophes, per diluted share growth rate to approximate the growth rate in Adjusted EBITDA, excluding reportable catastrophes.
Challenges Ahead
- Partially muting growth is lower prior year reserve development, as full-year 2023 included $54 million compared to $22 million through first quarter 2024.
- Global Lifestyle growth to be partially offset by investments to support growth, including new client and program implementation expenses.
- We continue to monitor the impact from macroeconomic conditions, including inflation, foreign exchange and interest rate levels, which may impact the pace and timing of growth.
- Corporate and Other Adjusted EBITDA loss to approximate $110 million.
- The company expects depreciation expense of approximately $130 million, and continues to expect interest expense of approximately $107 million, amortization of purchased intangible assets of approximately $70 million, and an effective tax rate of approximately 20 to 22 percent.