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Sep 30, 2021
Assurant Q3 2021 Earnings Report
Assurant's Q3 2021 financial results were reported, showing double-digit earnings growth driven by the expansion of Global Automotive and Connected Living businesses.
Key Takeaways
Assurant reported strong Q3 2021 results, with net income increasing by 75% and net operating income, excluding reportable catastrophes, up by 4%. The company reaffirmed its 2021 outlook, expecting EPS growth, excluding catastrophes, of 10 to 14 percent.
Net income increased 75 percent versus prior year period, while net income per diluted share increased 87 percent
Net operating income, excluding reportable catastrophes, up 4 percent to $162.1 million
Net operating income, excluding reportable catastrophes, per diluted share, up 5 percent to $2.73
Adjusted EBITDA, excluding reportable catastrophes, up 4 percent to $262.3 million
Assurant
Assurant
Forward Guidance
The company expects net operating income, excluding reportable catastrophes, per diluted share to increase approximately 10 to 14 percent from $9.88 in 2020.
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 and Other loss.
- Adjusted EBITDA, excluding reportable catastrophes, is expected to grow at a similar rate to net operating income, excluding reportable catastrophes, with double-digit Adjusted EBITDA growth in Global Lifestyle.
- Capital to be deployed to support business growth
- Capital to be deployed to fund investments
- Capital to be deployed to return capital to shareholders in the form of share repurchases and dividends, subject to Board approval and market conditions.
Challenges Ahead
- Global Housing net operating income, excluding reportable catastrophes, is expected to be roughly flat versus the prior year, as underlying growth is offset by lower real estate owned volumes and an increase in non-catastrophe losses.
- Net operating income, excluding reportable catastrophes, in the fourth quarter is expected to reflect increased investments to support long-term growth, including mobile service and repair programs
- Net operating income, excluding reportable catastrophes, in the fourth quarter is expected to reflect a tax rate in Global Lifestyle in-line with longer-term trends
- Net operating income, excluding reportable catastrophes, in the fourth quarter is expected to reflect increased Corporate and Other expenses due to timing of spending.
- Business segment dividends to approximate segment net operating income, including reportable catastrophes. This is subject to the growth of the businesses, rating agency and regulatory capital requirements, investment portfolio performance and a potential increase in U.S. corporate tax rates.