Double-Digit Growth in Global Lifestyle from Connected Living and Global Automotive

Reaffirm 2022 Outlook for Adjusted EBITDA and Adjusted EPS, Both Ex. Catastrophes

Assurant, Inc. (NYSE: AIZ), a leading global business services company that supports, protects and connects major consumer purchases, today reported results for the first quarter ended March 31, 2022.

“Our first quarter results were led by strong performance from our fee-based and capital-light offerings within Global Lifestyle, which came in ahead of our expectations,” said Assurant President and CEO Keith Demmings. “While Global Housing results were weaker in the first quarter, we continue to believe we are well-positioned to deliver on our financial objectives for 2022 as we focus on driving profitable growth while delivering market-leading innovation for our clients and their customers,” Demmings added.

First Quarter 2022 Summary:

• GAAP net income decreased 2 percent versus prior year period, while net income per diluted share increased 7 percent
• Adjusted EBITDA, excluding reportable catastrophes², was in-line with the prior year period at $302.0 million
• Adjusted earnings, excluding reportable catastrophes, per diluted share⁴, increased 17 percent to $3.80
• Holding company liquidity was $738 million, including the remaining Global Preneed sale proceeds
• Share repurchases and common stock dividends totaled $280 million

2022 Outlook

In 2022, the company continues to expect:

• 8 to 10 percent growth in Adjusted EBITDA, excluding reportable catastrophes⁵, driven by profitable growth across Global Lifestyle and Global Housing
• 16 to 20 percent growth in Adjusted earnings, excluding reportable catastrophes, per diluted share⁵, driven by continued profitable growth and share buybacks
  
  
  
  Note: References to net income, including in net income per diluted share, throughout this press release refer to net income from continuing operations. 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

First Quarter 2022 Consolidated Results

• GAAP net income was $145.5 million, compared to first quarter 2021 of $148.5 million. The decline was primarily driven by a decrease in net unrealized gains from changes in fair value of equity securities, partially offset by lower reportable catastrophes.

• GAAP net income per diluted share was $2.59, compared to first quarter 2021 of $2.41. The increase was primarily driven by ongoing share repurchases.

• Adjusted EBITDA¹ increased 16 percent compared to the prior year period, primarily due to a $40.6 million pre-tax decrease in reportable catastrophes. Excluding reportable catastrophes, Adjusted EBITDA² was in-line with the prior year period. Double-digit growth in Global Lifestyle and a lower Corporate and Other loss were offset by higher non-cat loss experience in Global Housing mainly within specialty products.

• Adjusted earnings, excluding reportable catastrophes, per diluted share⁴, increased 17 percent to $3.80, primarily driven by ongoing share repurchases and a $9.0 million one-time tax benefit.

• Revenue from the Global Lifestyle and Global Housing segments totaled $2.46 billion compared to $2.36 billion in first quarter 2021, up 4 percent, primarily due to Global Automotive growth within Global Lifestyle.
  
  
  
  Note: Throughout this press release, revenue refers to net earned premiums, fees and other income. GAAP revenue is equal to net earned premiums, fees and other income, net investment income and net realized gains (losses) on investments.

Global Lifestyle

• Adjusted EBITDA increased compared to the prior year period, due to strong results across Connected Living and Global Automotive. In Connected Living, mobile increased primarily from device protection performance in North America, including more favorable loss experience and subscriber growth, as well as an increase in global mobile devices serviced, mainly from higher trade-in volumes. Global Automotive increased from higher investment income, favorable loss experience in select ancillary products and expansion across distribution channels.

• Revenue increased compared to the prior year period, led by Global Automotive premium increases from strong prior period sales. Connected Living increased modestly as mobile fee income growth from service and repair and trade-in was partially offset by premium declines in runoff mobile programs.

Global Housing

• Adjusted EBITDA increased compared to the prior year period primarily due to a $40.5 million pre-tax decrease in reportable catastrophes. Excluding reportable catastrophes, Adjusted EBITDA2 decreased due to higher non-cat loss experience, including a $13.8 million year-over-year increase within sharing economy offerings primarily related to a reserve adjustment and adverse development from policies previously written under less favorable terms. Lender-placed also experienced higher non-cat losses mainly from elevated fire claims.

• Revenue increased modestly year-over-year, as growth in lender-placed from higher average insured values and premium rates and multifamily housing was partially offset by a decline in specialty products from client runoff.

Corporate and Other

• Adjusted EBITDA loss decreased in first quarter 2022 compared to the prior year period, primarily driven by lower employee-related expenses and an increase in investment income from higher asset balances.

Holding Company Liquidity Position

• Holding company liquidity totaled $738 million as of March 31, 2022, or $513 million above the company’s current targeted minimum level of $225 million, which includes the remaining proceeds from the sale of Global Preneed.
  
  
  
  Dividends paid by operating segments to the holding company in first quarter 2022 totaled $129 million.

• Share repurchases and common stock dividends totaled $280 million in first quarter 2022. During first quarter 2022, Assurant repurchased 1.5 million shares of common stock for $242 million and paid $37 million in common stock dividends. From April 1 through May 1, 2022, the company repurchased an additional 460 thousand shares for approximately $86 million, with $514 million remaining under the current repurchase authorization.

2022 Company Outlook⁵

For full-year 2022, the company expects:

• Adjusted EBITDA, excluding reportable catastrophes, to grow 8 to 10 percent, driven by growth across Global Lifestyle and Global Housing. Global Lifestyle Adjusted EBITDA is expected to increase by low double-digits, driven mainly by mobile in Connected Living from global expansion in existing and new clients across device protection and trade-in and upgrade programs. This will be partially offset by strategic investments to support new business opportunities, including in-store mobile service and repair capabilities, as well as unfavorable impacts of foreign exchange. Global Automotive is expected to increase, now driven by higher investment income and business performance. Global Housing Adjusted EBITDA, excluding reportable catastrophes, is now expected to increase by mid-single-digits, primarily from growth in lender-placed from expense initiatives and higher average insured values, which are expected to more than offset higher claims and reinsurance costs. Corporate and Other Adjusted EBITDA loss is expected to be approximately $105.0 million, reflecting lower net investment income as compared to 2021.

• Adjusted earnings, excluding reportable catastrophes, per diluted share to increase 16 to 20 percent, driven by continued Global Lifestyle and Global Housing growth as well as share repurchases, including returning the remaining proceeds from the sale of Global Preneed. Assurant’s consolidated effective tax rate is expected to be approximately 22 to 24 percent, which reflects the impact of the first quarter tax benefit.

• Business segment dividends to approximate three quarters of segment Adjusted EBITDA, including reportable catastrophes, which represents roughly the same historical conversion levels to the holding company. This is subject to the growth of the businesses, rating agency and regulatory capital requirements, and investment portfolio performance.

• Capital to be deployed to support business growth by funding investments and M&A, and to return capital to shareholders in the form of share repurchases and dividends, subject to Board approval and market conditions.

Earnings Conference Call

The first quarter 2022 earnings conference call and webcast will be held Wednesday, May 4, 2022 at 8:00 a.m. ET. The live and archived webcast, along with supplemental information, will be available on Assurant’s Investor Relations website:

https://ir.assurant.com/investor/default.aspx

About Assurant

Assurant, Inc. (NYSE: AIZ) is a leading global business services company that supports, protects and connects major consumer purchases. A Fortune 300 company with a presence in 21 countries, Assurant supports the advancement of the connected world by partnering with the world’s leading brands to develop innovative solutions and to deliver an enhanced customer experience through mobile device solutions, extended service contracts, vehicle protection services, renters insurance, lender-placed insurance products and other specialty products.

Learn more at assurant.com or on Twitter @Assurant.

Safe Harbor Statement

Some of the statements included 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 and operating strategies and similar matters, 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:

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 (the “SEC”), including the risk factors identified in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, each as filed with the SEC.

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.

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