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Jun 30, 2023
Assurant Q2 2023 Earnings Report
Assurant reported significant earnings and EPS growth in the second quarter, driven by continued momentum in Global Housing.
Key Takeaways
Assurant's Q2 2023 results were driven by significant top-line growth and improving loss experience in Global Housing. The company is increasing its 2023 outlook and expects Adjusted EBITDA and Adjusted earnings per share, both excluding catastrophes, to increase high single-digits.
GAAP net income increased to $156.3 million, compared to second quarter 2022 of $52.2 million, while net income per diluted share increased to $2.90 versus the prior year period of $0.95.
Adjusted EBITDA, excluding reportable catastrophes, increased to $336.5 million, compared to second quarter 2022 of $277.4 million.
Adjusted earnings, excluding reportable catastrophes, per diluted share, increased to $4.09, compared to second quarter 2022 of $3.25.
Holding company liquidity was $495 million; returned $60 million to shareholders via common stock dividends and the resumption of share repurchases in the quarter.
Assurant
Assurant
Forward Guidance
The company now expects Adjusted EBITDA, excluding reportable catastrophes, to increase by high single-digits, as significant growth in Global Housing is partially offset by a modest decline in Global Lifestyle. Adjusted earnings, excluding reportable catastrophes, per diluted share growth rate to approximate growth in Adjusted EBITDA, excluding reportable catastrophes.
Positive Outlook
- Global Housing Adjusted EBITDA, excluding reportable catastrophes, is expected to grow significantly, driven by strong performance in Homeowners reflecting higher lender-placed net earned premiums combined with improving non-catastrophe loss experience, including favorable prior period reserve development.
- Expense savings are expected to be realized over the course of the year in Global Housing.
- Higher investment income will partially offset the decline in Global Lifestyle.
- Expense savings to be realized over the course of the year in Global Lifestyle.
- Modest underlying Connected Living growth in North America is expected.
Challenges Ahead
- Global Lifestyle Adjusted EBITDA, is expected to decline modestly, largely driven by Global Automotive from elevated claims costs and less international contributions, including lower volumes and the impact of foreign exchange.
- Catastrophe reinsurance costs are expected to be up modestly, weighted towards second half 2023.
- Corporate and Other Adjusted EBITDA loss is expected to be approximately $105 million as the company continues to drive expense leverage.
- The company expects depreciation expense of approximately $110 million.
- The company expects interest expense of approximately $110 million.