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Jun 30, 2024
Assurant Q2 2024 Earnings Report
Assurant reported strong second quarter earnings and EPS growth, driven by continued strength in Global Housing. The company increased its 2024 outlook to deliver high single-digit growth in adjusted EBITDA with low double-digit adjusted EPS growth, both excluding catastrophes.
Key Takeaways
Assurant reported a 21% increase in GAAP net income to $188.7 million and a 23% increase in net income per diluted share to $3.58 compared to the prior year period. Adjusted EBITDA, excluding reportable catastrophes, increased 10% to $369.1 million. Given the strong year-to-date performance, the company is increasing its 2024 enterprise outlook.
GAAP net income increased 21 percent to $188.7 million, compared to the prior year period, while net income per diluted share increased 23 percent to $3.58 versus the prior year period.
Adjusted EBITDA, excluding reportable catastrophes, increased 10 percent to $369.1 million, or 11 percent on a constant currency basis.
Adjusted earnings, excluding reportable catastrophes, per diluted share, increased 17 percent to $4.77.
Holding company liquidity was $735 million; returned $80 million to shareholders via share repurchases and common stock dividends.
Assurant
Assurant
Assurant Revenue by Segment
Revenue by Segment
Global Lifestyle Revenue
CapyFin.comGlobal Housing Revenue
CapyFin.com Forward Guidance
The company now expects Adjusted EBITDA, excluding reportable catastrophes, to increase by high single-digits, led by strong growth in Global Housing and modest growth in Global Lifestyle. Adjusted earnings, excluding reportable catastrophes, per diluted share growth rate to increase by low double-digits.
Positive Outlook
- Adjusted EBITDA, excluding reportable catastrophes, to increase by high single-digits, led by strong growth in Global Housing and modest growth in Global Lifestyle.
- Global Housing Adjusted EBITDA, excluding reportable catastrophes, to deliver strong growth, mainly driven by top-line growth in Homeowners, benefits from expense leverage and lower catastrophe reinsurance premiums.
- Global Lifestyle Adjusted EBITDA to increase modestly, with organic growth and improved profitability in Connected Living programs.
- A lower effective tax rate of approximately 19 to 21 percent is expected.
- Capital deployment priorities to focus on maintaining a strong financial position, supporting business growth by funding investments and M&A, and returning capital to shareholders through common stock dividends and share repurchases, subject to Board approval.
Challenges Ahead
- Global Automotive to be flat to modestly down due to continued loss pressure from inflation and elevated losses in select ancillary products.
- Corporate and Other Adjusted EBITDA loss to approximate $110 million.
- The company continues to monitor the impact from macroeconomic conditions, including inflation, foreign exchange and interest rate levels, which have impacted and may continue to impact the pace and timing of growth.
- Depreciation expense is expected to be approximately $130 million.
- Interest expense is expected to be approximately $107 million and amortization of purchased intangible assets of approximately $70 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income