Assurant, Inc. (NYSE:AIZ), a leading global business services company, has reported its financial results for the first quarter of 2024, showcasing impressive performance across its key business segments. The company's net income for the full year 2023 reached $642.5 million, while its annual revenue stood at $11,131.6 million. Additionally, Assurant generated robust annual operating cash flow of $1,138.1 million and free cash flow of $935.6 million.

In the first quarter of 2024, Assurant's consolidated net income increased by $122.8 million to $236.4 million, compared to $113.6 million in the same period of the previous year. This strong performance was primarily driven by higher earnings in the Global Housing segment, a lower annualized effective tax rate, and favorable changes in foreign exchange-related gains and losses, partially offset by the absence of a gain related to Assurant Health runoff operations.

Business Overview

Global Lifestyle Segment Highlights

Assurant's Global Lifestyle segment delivered adjusted EBITDA of $207.7 million in the first quarter of 2024, representing a 4% year-over-year increase, or 5% on a constant currency basis. This growth was led by the strong performance of the Connected Living business, which saw a 14% increase in adjusted EBITDA, driven by continued momentum in the U.S. mobile protection programs and higher investment income. The Global Automotive business, however, experienced a 9% decline in adjusted EBITDA due to higher claims costs from persistent inflation impacts and the normalization of select ancillary products.

Global Lifestyle's net earned premiums, fees, and other income grew by 7% to $2.19 billion in the first quarter of 2024, primarily driven by the Connected Living business, which benefited from mobile growth, including contributions from newly launched trade-in programs and device protection programs in North America, as well as growth in the Global Automotive business from prior period sales.

Global Housing Segment Outperformance

The Global Housing segment was a standout performer, with adjusted EBITDA increasing by 181% to $192.5 million in the first quarter of 2024, excluding reportable catastrophes. This impressive growth was driven by lower non-catastrophe loss experience, including the impact of lower claims severity and favorable prior period reserve development, continued top-line growth in the Homeowners business, and lower catastrophe reinsurance costs.

Global Housing's net earned premiums, fees, and other income increased by 13% to $572.2 million in the first quarter of 2024, mainly driven by the Homeowners business, including higher average premiums and growth in policies in-force within lender-placed, as well as lower catastrophe reinsurance premiums and growth in the Renters and Other business.

Financials

Robust Capital Position and Capital Management

Assurant's strong financial performance has enabled the company to maintain a robust capital position, with $622.3 million in holding company liquidity as of March 31, 2024, which was $397.3 million above the targeted minimum level. This solid capital position has allowed the company to return $77.3 million to shareholders in the first quarter of 2024, including $40.0 million in share repurchases.

Outlook

Looking Ahead: Guidance and Outlook

For the full year 2024, Assurant continues to expect Enterprise adjusted EBITDA to grow by mid-single digits, excluding catastrophes. Based on the strong first quarter performance within the Global Housing segment, the company now anticipates that Global Housing will lead the enterprise growth. In the Global Lifestyle segment, the full-year outlook remains unchanged, with growth in Connected Living expected to be partially offset by incremental investments to support long-term growth.

Assurant's adjusted EPS growth is now expected to approximate adjusted EBITDA growth, reflecting lower expected depreciation expense and higher earnings within the Global Housing segment.

Conclusion

Assurant's impressive first quarter 2024 results demonstrate the strength and resilience of its diversified business model. The company's market leadership positions, competitive advantages, and disciplined capital management have enabled it to navigate the current macroeconomic environment and deliver consistent financial performance. With a solid capital position and a positive outlook for the remainder of 2024, Assurant is well-positioned to continue creating value for its shareholders.