Assurant Reports First Quarter 2025 Financial Results
AIZ
Published on 05/06/2025 at 16:22
Reaffirming 2025 Enterprise Outlook
Assurant, Inc. (NYSE: AIZ), a premier global protection company that safeguards and services connected devices, homes and automobiles in partnership with the world’s leading brands, today announced results for the first quarter ended March 31, 2025.
“We are pleased with our first quarter results, supported by strong performance in Global Housing and improved loss experience in Global Automotive within Global Lifestyle. In the quarter, we made progress against our strategic priorities to deliver for our clients, generate efficiencies across our operations and continue our focus on growth,” said Assurant President and CEO Keith Demmings.
“As we look ahead in 2025, we are reaffirming our outlook for earnings growth, demonstrating the position of strength from which we continue to operate. As we navigate through a dynamic macroeconomic environment, we believe we are well positioned to deliver over the long term, leveraging our commercial momentum with existing clients and key prospects, and differentiated products and services that we offer on behalf of the world’s leading brands. Assurant is financially strong, with a robust capital position. We continue to prioritize investing in our people, technology and solutions to deliver long-term growth and meaningful shareholder value,” Demmings added.
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.
(Unaudited)
Q1'25
Q1'24
Change
$ in millions, except per share data
GAAP net income
146.6
236.4
(38)%
Adjusted EBITDA1
282.2
370.7
(24)%
Adjusted EBITDA, ex. reportable catastrophes2
439.2
383.7
14%
GAAP net income per diluted share
2.83
4.47
(37)%
Adjusted earnings per diluted share3
3.39
4.78
(29)%
Adjusted earnings, ex. reportable catastrophes, per diluted share4
5.79
4.97
16%
Some of the metrics throughout this press release are non-GAAP measures of performance. A full reconciliation of each non-GAAP measure to the most comparable GAAP measure can be found in the Non-GAAP Financial Measures section.
First Quarter Consolidated Results
(Unaudited)
Q1'25
Q1'24
Change
$ in millions
GAAP net income
146.6
236.4
(38)%
Adjusted EBITDA
Global Lifestyle
197.8
207.7
(5)%
Global Housing
112.4
192.5
(42)%
Corporate and Other
(28.0)
(29.5)
5%
Adjusted EBITDA1
282.2
370.7
(24)%
Reportable catastrophes
157.0
13.0
Adjusted EBITDA, ex. reportable catastrophes
Global Lifestyle2
198.1
207.8
(5)%
Global Housing2
269.1
205.4
31%
Corporate and Other
(28.0)
(29.5)
5%
Adjusted EBITDA, ex. reportable catastrophes2
439.2
383.7
14%
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
First Quarter 2025 Consolidated Results
Global Lifestyle
$ in millions
Q1'25
Q1'24
Change
Adjusted EBITDA
197.8
207.7
(5)%
Net earned premiums, fees and other income
2,306.6
2,187.8
5%
Global Housing
$ in millions
Q1'25
Q1'24
Change
Adjusted EBITDA
112.4
192.5
(42)%
Reportable catastrophes
156.7
12.9
Adjusted EBITDA, ex. reportable catastrophes2
269.1
205.4
31%
Net earned premiums, fees and other income
656.8
572.2
15%
Corporate and Other
$ in millions
Q1'25
Q1'24
Change
Adjusted EBITDA
(28.0)
(29.5)
5%
Holding Company Liquidity Position
2025 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 macroeconomic conditions, the company continues to expect the following:
$ in millions, except per share data
2024
2025 Outlook6
Adjusted EBITDA, ex. reportable catastrophes2
$1,569
Modest growth
Adjusted earnings, ex. reportable catastrophes, per diluted share4
$20.35
Modest growth
Earnings Conference Call
The first quarter 2025 earnings conference call and webcast will be held on Wednesday, May 7, 2025 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
About Assurant
Assurant, Inc. (NYSE: AIZ) is a premier global protection company that partners with the world’s leading brands to safeguard and service connected devices, homes, and automobiles. As a Fortune 500 company operating in 21 countries, Assurant leverages data-driven technology solutions to provide exceptional customer experiences.
Learn more at assurant.com
Safe Harbor Statement
Some of the statements in this news release and its exhibits, including our business and financial plans and any statements regarding the company’s anticipated future financial performance, business prospects, growth, operating strategies, valuation and similar matters, such as performance outlook, financial objectives, business drivers, our ability to gain market share, and the strength, diversity, predictability and resiliency of enterprise and segment earnings, cash flows and other results, may constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.
You can identify forward-looking statements by the use of words such as “outlook,” “objective,” “will,” “may,” “can,” “anticipates,” “expects,” “estimates,” “projects,” “intends,” “plans,” “believes,” “targets,” “forecasts,” “potential,” “approximately,” and the negative version of those words and other words and terms with a similar meaning. Any forward-looking statements contained in this news release or its exhibits are based upon our historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that our future plans, estimates or expectations will be achieved. Our actual results might differ materially from those projected in the forward-looking statements. We undertake no obligation to update or review any forward-looking statement, whether as a result of new information, future events or other developments. The following factors could cause our actual results to differ materially from those currently estimated by management, including those projected in the company outlook:
i.
the impact of general economic, financial market and political conditions and conditions in the markets in which we operate, including inflation, tariff policies in the United States and abroad, global supply chain impacts and recessionary pressures;
ii.
the loss of significant clients, distributors or other parties with whom we do business, or if we are unable to renew contracts with them on favorable terms, or if they disintermediate us, or if those parties face financial, reputational or regulatory issues;
iii.
significant competitive pressures, changes in customer preferences and disruption;
iv.
the failure to execute our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce;
v.
the failure to find suitable acquisitions at attractive prices, integrate acquired businesses or divest of non-strategic businesses effectively or achieve organic growth;
vi.
our inability to recover should we experience a business continuity event;
vii.
the failure to manage vendors and other third parties on whom we rely to conduct business and provide services to our clients;
viii.
risks related to our international operations;
ix.
declines in the value and availability of mobile devices, and regulatory compliance or other risks in our mobile business;
x.
our inability to develop and maintain distribution sources or attract and retain sales representatives and executives with key client relationships;
xi.
risks associated with joint ventures, franchises and investments in which we share ownership and management with third parties;
xii.
the impact of catastrophe and non-catastrophe losses, including as a result of climate change and the current inflationary environment;
xiii.
negative publicity relating to our business, practices, industry or clients;
xiv.
the adequacy of reserves established for claims and our inability to accurately predict and price for claims and other costs;
xv.
a decline in financial strength ratings of our insurance subsidiaries or in our corporate senior debt ratings;
xvi.
fluctuations in exchange rates, including in the current environment;
xvii.
an impairment of goodwill or other intangible assets;
xviii.
the failure to maintain effective internal control over financial reporting;
xix.
unfavorable conditions in the capital and credit markets;
xx.
a decrease in the value of our investment portfolio, including due to market, credit and liquidity risks, and changes in interest rates;
xxi.
an impairment in the value of our deferred tax assets;
xxii.
the unavailability or inadequacy of reinsurance coverage and the credit risk of reinsurers, including those to whom we have sold business through reinsurance;
xxiii.
the credit risk of some of our agents, third-party administrators and clients;
xxiv.
the inability of our subsidiaries to pay sufficient dividends to the holding company and limitations on our ability to declare and pay dividends or repurchase shares;
xxv.
limitations in the analytical models we use to assist in our decision-making;
xxvi.
the failure to effectively maintain and modernize our technology systems and infrastructure, or the failure to integrate those of acquired businesses;
xxvii.
breaches of our technology systems or those of third parties with whom we do business, or the failure to protect the security of data in such systems, including due to cyberattacks and as a result of working remotely;
xxviii.
the costs of complying with, or the failure to comply with, extensive laws and regulations to which we are subject, including those related to privacy, data security, data protection and tax;
xxix.
the impact of litigation and regulatory actions;
xxx.
reductions or deferrals in the insurance premiums we charge;
xxxi.
changes in insurance, tax and other regulations;
xxxii.
volatility in our common stock price and trading volume; and
xxxiii.
employee misconduct.
For additional information on factors that could affect our actual results, please refer to the factors identified in the reports we file with the U.S. Securities and Exchange Commission, including the risk factors identified in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Non-GAAP Financial Measures
Assurant uses the following non-GAAP financial measures to analyze the company’s operating performance. Assurant’s non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. Because Assurant’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing Assurant’s non-GAAP financial measures to those of other companies.
(1)
(2)
(UNAUDITED)
1Q
1Q
12 Months
($ in millions)
2025
2024
2024
GAAP net income
$
146.6
$
236.4
$
760.2
Less:
Interest expense
26.8
26.8
107.0
Provision for income taxes
37.1
56.5
167.1
Depreciation expense
35.1
30.6
139.4
Amortization of purchased intangible assets
18.4
17.6
69.1
Adjustments, pre-tax:
Net realized losses on investments and fair value changes to equity securities
16.0
8.8
75.8
Other adjustments(1)
2.2
(6.0
)
3.8
Adjusted EBITDA
282.2
370.7
1,322.4
Reportable catastrophes
157.0
13.0
247.0
Adjusted EBITDA, excluding reportable catastrophes
$
439.2
$
383.7
$
1,569.4
(1)
1Q 2025
1Q 2024
Global Lifestyle
Global Housing
Global Lifestyle
Global Housing
($ in millions)
Adjusted EBITDA
$
197.8
$
112.4
$
207.7
$
192.5
Reportable catastrophes
0.3
156.7
0.1
12.9
Adjusted EBITDA, excluding reportable catastrophes
$
198.1
$
269.1
$
207.8
$
205.4
(3)
(4)
(UNAUDITED)
1Q
1Q
12 Months
($ in millions)
2025
2024
2024
GAAP net income
$
146.6
$
236.4
$
760.2
Adjustments, pre-tax:
Net realized losses on investments and fair value changes to equity securities
16.0
8.8
75.8
Amortization of purchased intangible assets
18.4
17.6
69.1
Other adjustments
2.2
(6.0
)
3.8
Benefit for income taxes
(7.7
)
(4.2
)
(34.2
)
Adjusted earnings
175.5
252.6
874.7
Reportable catastrophes, pre-tax
157.0
13.0
247.0
Tax impact of reportable catastrophes
(33.0
)
(2.7
)
(51.8
)
Adjusted earnings, excluding reportable catastrophes
$
299.5
$
262.9
$
1,069.9
(UNAUDITED)
1Q
1Q
12 Months
2025
2024
2024
GAAP net income per diluted share(1)
$
2.83
$
4.47
$
14.46
Adjustments, pre-tax:
Net realized losses on investments and fair value changes to equity securities
0.31
0.17
1.44
Amortization of purchased intangible assets
0.36
0.33
1.31
Other adjustments
0.04
(0.11
)
0.08
Benefit for income taxes
(0.15
)
(0.08
)
(0.65
)
Adjusted earnings, per diluted share
3.39
4.78
16.64
Reportable catastrophes, pre-tax
3.03
0.24
4.70
Tax impact of reportable catastrophes
(0.63
)
(0.05
)
(0.99
)
Adjusted earnings, excluding reportable catastrophes, per diluted share
$
5.79
$
4.97
$
20.35
(1)
(5)
(UNAUDITED)
Constant Currency
1Q 2025
Percentage change in Global Lifestyle and Global Housing net earned premiums, fees and other income:
Including FX impact
7.4
%
FX impact
(1.1
)%
Excluding FX impact
8.5
%
Percentage change in Global Lifestyle net earned premiums, fees and other income:
Including FX impact
5.4
%
FX impact
(1.4
)%
Excluding FX impact
6.8
%
Percentage change in GAAP net income, including FX impact
(38.0
)%
Percentage change in Adjusted EBITDA, including FX impact
(23.9
)%
Percentage change in Adjusted EBITDA, excluding reportable catastrophes:
Including FX impact
14.5
%
FX impact
(1.4
)%
Excluding FX impact
15.9
%
Percentage change in Global Lifestyle Adjusted EBITDA:
Including FX impact
(4.8
)%
FX impact
(2.8
)%
Excluding FX impact
(2.0
)%
(6)
Assurant, Inc.
Consolidated Statement of Operations (unaudited)
Three Months Ended March 31, 2025 and 2024
1Q
2025
2024
($ in millions except number of shares and per share amounts)
Revenues
Net earned premiums
$
2,562.3
$
2,376.5
Fees and other income
402.9
385.7
Net investment income
124.8
126.7
Net realized losses on investments and fair value changes to equity securities
(16.0
)
(8.8
)
Total revenues
3,074.0
2,880.1
Benefits, losses and expenses
Policyholder benefits
779.7
623.1
Underwriting, selling, general and administrative expenses
2,083.8
1,937.3
Interest expense
26.8
26.8
Total benefits, losses and expenses
2,890.3
2,587.2
Income before provision for income taxes
183.7
292.9
Provision for income taxes
37.1
56.5
Net income
$
146.6
$
236.4
Net income per share:
Basic
$
2.86
$
4.50
Diluted
$
2.83
$
4.47
Common stock dividends per share
$
0.80
$
0.72
Share data:
Basic weighted average shares outstanding
51,281,419
52,531,865
Diluted weighted average shares outstanding
51,731,116
52,872,254
Assurant, Inc.
Consolidated Condensed Balance Sheets (unaudited)
At March 31, 2025 and December 31, 2024
March 31,
December 31,
2025
2024
($ in millions)
Assets
Investments and cash and cash equivalents
$
10,713.2
$
10,352.2
Reinsurance recoverables
7,361.4
7,579.5
Deferred acquisition costs
9,959.8
9,992.8
Goodwill
2,620.7
2,616.0
Value of business acquired
6.9
8.0
Other assets
4,326.4
4,472.1
Total assets
$
34,988.4
$
35,020.6
Liabilities
Policyholder benefits and claims payable
$
3,077.2
$
3,450.9
Unearned premiums
20,132.5
20,211.4
Debt
2,083.7
2,083.1
Accounts payable and other liabilities
4,460.8
4,168.5
Total liabilities
29,754.2
29,913.9
Stockholders’ equity
Equity, excluding accumulated other comprehensive loss
5,982.7
5,942.8
Accumulated other comprehensive loss
(748.5
)
(836.1
)
Total equity
5,234.2
5,106.7
Total liabilities and equity
$
34,988.4
$
35,020.6
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