Third Quarter 2024 Summary

• GAAP net income decreased 30 percent to $133.8 million, compared to the prior year period, while net income per diluted share decreased 28 percent to $2.55 versus the prior year period.

• Adjusted EBITDA, excluding reportable catastrophes², increased 8 percent to $385.1 million, or 9 percent on a constant currency basis⁵.

• Adjusted earnings, excluding reportable catastrophes, per diluted share⁴, increased 9 percent to $5.08.

• Holding company liquidity was $636 million; returned $138 million to shareholders via share repurchases and common stock dividends.

2024 Outlook

The company now expects:

• Adjusted EBITDA, excluding reportable catastrophes⁶, to increase low double-digits, led by strong growth in Global Housing, with modest growth in Global Lifestyle.

• Adjusted earnings, excluding reportable catastrophes, per diluted share⁶, to increase mid- to high-teens.
  
  Note: The metrics included within the company’s outlook are non-GAAP financial measures and the company believes that it cannot, without unreasonable efforts, forecast certain information needed to reconcile to the GAAP measures, the probable significance of which cannot be determined. More information can be found in the Non-GAAP Financial Measures section.

Third Quarter 2024 Consolidated Results

Note: Adjusted EBITDA of the Global Lifestyle, Global Housing and Corporate and Other segments is the segment measure of profitability in our GAAP financial statements and includes reportable catastrophes. Additional details regarding key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website: https://ir.assurant.com/investor/default.aspx

Third Quarter 2024 Consolidated Results

• GAAP net income decreased to $133.8 million, compared to third quarter 2023 of $190.1 million, primarily due to higher reportable catastrophes within Global Housing. This was partially offset by higher top-line growth in Homeowners within Global Housing.

• GAAP net income per diluted share decreased to $2.55 compared to third quarter 2023 of $3.54. The decrease was primarily driven by the factors noted above.

• Adjusted EBITDA¹ decreased to $246.9 million compared to the prior year period of $330.7 million. Results included $111.8 million of higher pre-tax reportable catastrophes. Excluding reportable catastrophes, Adjusted EBITDA² increased 8 percent, or 9 percent on a constant currency basis⁵, to $385.1 million, primarily from higher earnings in Global Housing.

• Adjusted earnings, excluding reportable catastrophes, per diluted share⁴, increased 9 percent to $5.08 compared to the prior year period of $4.68, mainly from higher Global Housing earnings and the impact of share repurchases, partially offset by higher depreciation expense.

• Net earned premiums, fees and other income from the Global Lifestyle and Global Housing segments totaled $2.85 billion compared to $2.66 billion in third quarter 2023, up 7 percent, or 8 percent on a constant currency basis⁵, driven by growth across both segments.

Global Lifestyle

• Adjusted EBITDA decreased 4 percent compared to third quarter 2023, or 1 percent on a constant currency basis⁵. The decline was primarily driven by unfavorable foreign exchange and modestly lower results within Global Automotive, where elevated losses within select ancillary products were partially offset by higher investment income. On a constant currency basis, Connected Living⁵ was flat as investments in new client programs and capabilities to support future growth were offset by growth in mobile device protection programs from increased subscribers, particularly in the U.S.

• Net earned premiums, fees and other income increased 7 percent compared to third quarter 2023, or 8 percent on a constant currency basis⁵, primarily driven by Connected Living from mobile growth, including contributions from newly launched trade-in programs and global device protection programs.

Global Housing

• Adjusted EBITDA decreased 44 percent compared to third quarter 2023. Results included $110.6 million of higher pre-tax reportable catastrophes. Excluding reportable catastrophes, Adjusted EBITDA² increased 20 percent, primarily from continued top-line growth within Homeowners, including higher policies in-force from new lender-placed programs and portfolios and increased voluntary insurance market pressure, and $30.1 million of favorable year-over-year prior period reserve development. The increase was partially offset by a $27.5 million non-run rate adjustment related to a change in earnings pattern assumptions.

• Net earned premiums, fees and other income increased 9 percent compared to third quarter 2023, mainly driven by Homeowners top-line growth, including growth in policies in-force and higher average premiums within lender-placed as well as growth across various specialty products, partially offset by the non-run rate adjustment mentioned above.

Corporate and Other

• Adjusted EBITDA loss increased in third quarter 2024 compared to the prior year period, primarily driven by higher third-party and employee-related expenses.

Holding Company Liquidity Position

• Holding company liquidity totaled $636 million as of September 30, 2024, or $411 million above the company’s targeted minimum level of $225 million.
  
  Dividends paid by the operating segments to the holding company in third quarter 2024 totaled $161 million.

• Share repurchases and common stock dividends totaled $138 million in third quarter 2024. During third quarter 2024, Assurant repurchased approximately 530 thousand shares of common stock for $100 million and paid $38 million in common stock dividends. From October 1 through November 1, 2024, the company repurchased approximately 103 thousand shares for $20 million, for a total of $200 million in share repurchases year-to-date. $475 million remains under the current repurchase authorization.

2024 Company Outlook⁶

Note: Some of the metrics included within the company’s outlook are non-GAAP financial measures and the company believes that it cannot, without unreasonable efforts, forecast certain information needed to reconcile to the GAAP measures, the probable significance of which cannot be determined. More information can be found in the Non-GAAP Financial Measures section.

Based on current market conditions, for full year 2024, the company now expects:

• Adjusted EBITDA, excluding reportable catastrophes⁶, to increase by low double-digits, led by strong growth in Global Housing and modest growth in Global Lifestyle.

  • Global Housing Adjusted EBITDA, excluding reportable catastrophes⁶, to deliver strong growth, mainly driven by top-line growth in Homeowners, favorable non-catastrophe loss experience, benefits from expense leverage and lower catastrophe reinsurance premiums. Year-to-date 2024 included $85 million of favorable prior year reserve development. In fourth quarter 2024, Hurricane Milton is expected to be a reportable catastrophe event with losses in the range of $75 to $110 million pre-tax.

  • Global Lifestyle Adjusted EBITDA to increase modestly. The company continues to expect organic growth and improved profitability in Connected Living programs, partially offset by investments to support growth, including new client and program implementation expenses. We now expect Global Automotive to be down due to continued loss pressure from inflation and elevated losses in select ancillary products. Implemented rate actions are expected to drive improvement over time. We continue 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.

  • Corporate and Other Adjusted EBITDA loss to now approximate $115 million.

• Adjusted earnings, excluding reportable catastrophes, per diluted share⁶ growth rate to increase by mid- to high-teens. The company now expects an effective tax rate of approximately 18 to 20 percent and depreciation expense of approximately $135 million, and continues to expect interest expense of approximately $107 million and amortization of purchased intangible assets of approximately $70 million.

• Business segment dividends are now expected to be below two-thirds of segment Adjusted EBITDA, including reportable catastrophes⁶. This is subject to the business and investment portfolio performance, and rating agency and regulatory capital requirements.

• 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.

Earnings Conference Call

The third quarter 2024 earnings conference call and webcast will be held on Wednesday, November 6, 2024 at 8:00 a.m. E.T. The slide presentation used by management during the webcast includes supplemental information and will be available on Assurant’s Investor Relations website prior to the conference call. The live and archived webcast, along with supplemental information, will also be available on Assurant’s Investor Relations website:
https://ir.assurant.com/investor/default.aspx