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Dec 31, 2023
Assurant Q4 2023 Earnings Report
Assurant reported strong earnings and EPS growth in 2023, led by Global Housing, with continued profitable growth expected in 2024.
Key Takeaways
Assurant reported exceptionally strong results in 2023, marking its seventh consecutive year of profitable growth. The company's success was driven by a focus on strategic, financial, and operational outperformance, strengthening its competitive positioning and creating shareholder value. Earnings growth is expected to continue into 2024.
GAAP net income increased to $182.5 million, compared to $68.1 million in Q4 2022, primarily due to higher segment earnings and lower restructuring costs.
GAAP net income per diluted share increased to $3.42 compared to $1.27 in Q4 2022, driven by the factors noted above.
Adjusted EBITDA increased 32 percent to $360.8 million compared to the prior year period, primarily due to Global Housing and Global Lifestyle.
Adjusted earnings, excluding reportable catastrophes, per diluted share increased 38 percent to $4.90 compared to the prior year period, primarily from higher segment earnings and a lower effective tax rate.
Forward Guidance
For full-year 2024, Assurant expects Adjusted EBITDA, excluding reportable catastrophes, to increase by mid-single-digits, led by both Global Lifestyle and Global Housing, at similar growth rates. Adjusted earnings, excluding reportable catastrophes, per diluted share growth rate to be modestly lower than growth rate in Adjusted EBITDA, excluding reportable catastrophes, primarily driven by higher depreciation expense from strategic technology investments.
Positive Outlook
- Global Lifestyle Adjusted EBITDA to increase, mainly driven by organic growth and improved profitability in Connected Living programs.
- Global Automotive is expected to grow as previous rate actions are expected to drive improvement over time.
- Growth to be partially offset by new client and program implementation expenses.
- Global Housing Adjusted EBITDA, excluding reportable catastrophes, to increase, following significant growth in 2023, mainly driven by continued Homeowners top-line growth and lower catastrophe reinsurance costs.
- Corporate and Other Adjusted EBITDA loss to approximate $105 million as the company continues to drive expense leverage.
Challenges Ahead
- Adjusted earnings, excluding reportable catastrophes, per diluted share growth rate to be modestly lower than growth rate in Adjusted EBITDA, excluding reportable catastrophes, primarily driven by higher depreciation expense from strategic technology investments.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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