• Adjusted EBITDA Growth: 15% increase to over $1.5 billion, excluding catastrophes.
• Adjusted Earnings Per Share Growth: 19% increase to over $20, excluding catastrophes.
• Global Housing Adjusted EBITDA: More than doubled to over $900 million in 2024, excluding catastrophes.
• Return on Equity: Average of over 22% over the past five years.
• Combined Ratio: 10-year average of 89%, compared to the broader P&C market of 95%.
• Cash Flow Generation: Nearly $250 million upstreamed in Q4 and over $800 million for the full year.
• Capital Return to Shareholders: Over $450 million for the year, including $300 million of share repurchases.
• Liquidity: $673 million at the holding company.
• Dividend Increase: 11% increase, marking the 20th consecutive year of dividend raises.
• Global Lifestyle Adjusted EBITDA: Down 6% in Q4 compared to last year, or 5% on a constant currency basis.
• Global Auto Earnings: Down 11% in Q4 compared to last year, largely due to lower real estate joint venture partnership income.
• Global Housing Q4 Adjusted EBITDA: $225 million, including $50 million of catastrophe losses.
• Share Repurchase Expectation for 2025: Between $200 million to $300 million, subject to conditions.

• Warning! GuruFocus has detected 9 Warning Signs with RGS.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Assurant Inc (NYSE:AIZ) achieved a 15% growth in adjusted EBITDA and a 19% growth in adjusted earnings per share for 2024, excluding reportable catastrophes.
• The company secured significant client wins and renewals in Global Lifestyle, particularly within Connected Living, including a partnership with T-Mobile for the Protection 360 Home Tech product.
• Global Housing delivered double-digit earnings growth for the second consecutive year, with adjusted EBITDA more than doubling since 2022, excluding catastrophes.
• Assurant Inc (NYSE:AIZ) returned over $450 million to shareholders in 2024, including $300 million in share repurchases, and increased its common stock dividend by 11%.
• The company has a strong B2B2C distribution strategy, partnering with leading global brands to provide protection for connected devices, homes, and automobiles, leveraging data-driven technology solutions.

Negative Points

• Global Lifestyle's fourth quarter adjusted EBITDA was down 6% compared to the previous year, impacted by lower US trade-in programs and unfavorable foreign exchange rates.
• Global Auto experienced an 11% decline in results year-over-year, primarily due to lower real estate joint venture partnership income and elevated loss experience in certain products.
• The company faces potential headwinds from foreign exchange rates and incremental investments, which could mute growth by a few percentage points in 2025.
• Assurant Inc (NYSE:AIZ) anticipates a modest decline in Global Housing EBITDA for 2025, excluding catastrophes, due to significant favorable prior year reserve development in 2024.
• The impact of tariffs and potential changes in consumer demand or claims costs could pose challenges, although these factors are not currently included in the 2025 outlook.

Q & A Highlights

Q: On the homeowners business, can you discuss the voluntary versus lender-placed placement rates and the market dislocation's impact on momentum for 2025? A: Keith Demmings, President and CEO, explained that they've seen strong growth in lender-placed policies, with a 16% year-over-year increase in policies in force. This growth is driven by client growth, market hardening in California, and similar dynamics across the country. While growth may not continue at the same level, the momentum in housing remains strong.

Q: How should we think about top-line growth in Global Lifestyle for 2025? A: Keith Demmings highlighted the importance of securing mobile clients in Connected Living, which allows for growth through new products and optimized customer experiences. The addition of Chase in the fourth quarter will drive financial services growth. The company expects consistent top-line growth in Lifestyle, with a focus on loss recovery in Global Auto.

Q: Are insurers leaving California after the fires, and could this impact placement rates in Q1? A: Keith Meier, CFO, noted that a moratorium in California prevents insurers from leaving immediately after the wildfires, which should temper exits in the short term. They do not expect significant insurer exits from the state in the near term.

Q: Are you still seeing elevated losses in the GAAP book in Global Auto, and how does this impact the loss ratio? A: Keith Meier stated that GAAP losses have stabilized, with a slight improvement from the third to the fourth quarter. This stabilization supports their positive outlook for 2025, with expected growth in auto.

Q: Regarding investment spend, are new programs generating $25 million of positive EBITDA in 2025 to offset the 2024 drag? A: Keith Demmings confirmed that the new programs are expected to generate $25 million of positive EBITDA in 2025, fully offsetting the 2024 investment drag. The new investment spend for 2025 involves separate programs with marquee brands and clients.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.