Assurant Q3 Earnings Beat on Solid Global Housing Growth, View Raised

Assurant, Inc. AIZ reported third-quarter 2024 net operating income of $3.00 per share, which beat the Zacks Consensus Estimate by 20%. However, the bottom line declined 30.7% year over year.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The quarterly results reflected solid performance at Global Housing with growing revenues and expense discipline. Global Lifestyle performed in line with expectations, as AIZ prioritized strategic investments for growth in new and expanded Connected Living partnerships and saw further signs of stabilization within Global Automotive.Total revenues increased 7.6% year over year to nearly $3 billion, driven by higher net earned premiums, fees and other income and net investment income. The top line beat the Zacks Consensus Estimate by 2.6%. Assurant, Inc. Price, Consensus and EPS Surprise Assurant, Inc. price-consensus-eps-surprise-chart | Assurant, Inc. QuoteNet earned premiums, fees and other income increased 7% year over year to $2.9 billion, driven by growth across both segments. Our estimate was $2.8 billion.Net investment income was down 10.9% year over year to $129.7 million. Our estimate was $130.7 million. The Zacks Consensus Estimate was pegged at $127 million.Total benefits, loss and expenses increased 2.2% to $2.8 billion, mainly due to higher policyholders benefit. Our estimate was $2.5 billion.Adjusted EBITDA, excluding reportable catastrophes, increased 31.6% to $ 246.9 million. Our estimate was $397.7 million.Segmental PerformanceRevenues at Global Housing increased 9.7% year over year to $635.5 million, primarily driven by higher net earned premiums and net investment income. The figure was higher than our estimate of $577 million. The Zacks Consensus Estimate was $621 million.Net earned premiums, fees and other income increased 9% year over year, driven by Homeowners’ top-line growth, including growth in policies in force and higher average premiums within lender-placed.Adjusted EBITDA, excluding catastrophes, increased 10.2% year over year to $229.2 million on continued top-line growth within Homeowners, including higher policies in force from new lender-placed programs and portfolios. The figure was higher than our estimate of $167.7 million. The Zacks Consensus Estimate was $169 million.Revenues at Global Lifestyle declined 3% year over year to $2.3 billion, owing to a drop in net investment income. Revenues matched the Zacks Consensus Estimate and our estimate.Adjusted EBITDA, excluding catastrophes, of $184.3 million decreased 10% year over year, attributable to unfavorable foreign exchange and modestly lower results within Global Automotive, where elevated losses within select ancillary products. The figure was lower than our estimate of $258 million. The Zacks Consensus Estimate was pegged at $229 million.Adjusted EBITDA loss at Corporate & Other was $29.8 million, narrower than the year-ago quarter’s adjusted EBITDA loss of $29.9 million. The narrower loss was attributable to higher net investment income from higher asset levels and yields. The Zacks Consensus Estimate was pegged at a loss of $27 million.Financial PositionLiquidity was $638 million as of Sept. 30, 2024, which was $411 million higher than the company’s current targeted minimum level of $225 million.Total assets increased 5.1% to $35.3 billion as of Sept. 30, 2024, from the end of 2023.Total shareholders’ equity came in at $5.3 billion, up 9.3% year over year.Debt-to-total capital ratio of 28.4 improved 180 bps from the 2023 end level.Share Repurchase and Dividend UpdateIn the third quarter, Assurant returned $138 million to shareholders, comprising $100 million in buybacks and $38 million in dividends. Through Nov. 2, the insurer bought back another $20 million worth of shares and now has $475 million remaining under the current repurchase authorization.2024 Guidance RaisedAssurant expects adjusted EBITDA to increase in low double digits, led by strong growth in Global Housing and modest growth in Global Lifestyle. It expected the same to increase in high single digits earlier.Global Housing adjusted EBITDA, excluding reportable catastrophes, is expected to increase and 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.Global Lifestyle adjusted EBITDA is expected 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. It now expects Global Automotive to be down due to continued loss pressure from inflation and elevated losses in select ancillary products.Corporate and Other adjusted EBITDA loss is expected to approximate $115 million.The company now expects a lower effective tax rate of approximately 18% to 20%. It continues to expect depreciation expense of approximately $135 million, interest expense of approximately $107 million and amortization of purchased intangible assets of approximately $70 million.Adjusted earnings per share are expected to grow in mid- to high-teens, excluding reportable catastrophes. It earlier expected adjusted earnings per share, excluding reportable catastrophes, to grow in low double digits.The insurer expects share repurchases worth $300 million, reflecting a strong capital position and a comprehensive catastrophe reinsurance program.Zacks RankAIZ currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other Multiline InsurersMetLife, Inc. MET reported third-quarter 2024 adjusted operating earnings of $1.93 per share, which missed the Zacks Consensus Estimate by 10.7%. The bottom line declined 1% year over year. Adjusted operating revenues of $17.6 billion decreased 3.4% year over year. The top line missed the consensus mark by 4.7%.Earlier, management estimated a variable investment income of $1.5 billion for 2024. Corporate & Other adjusted losses are anticipated between $750 million and $850 million.  The effective tax rate is projected to be in the range of 24-26%.MetLife Holdings segment’s adjusted PFOs are expected to witness a year-over-year decline of 13-15%. The unit’s adjusted earnings are forecast to be $700-$900 million.Adjusted earnings in the Asia segment are anticipated to grow 20%. Adjusted earnings in the EMEA unit are likely to be in the range of $60-$65 million for the remaining quarters of 2024.Prudential Financial, Inc. PRU reported third-quarter 2024 adjusted operating income of $3.48 per share, which beat the Zacks Consensus Estimate by 0.2%. However, the bottom line decreased 3.8% year over year.  Total revenues of $19.5 billion surged 94% year over year and beat the Zacks Consensus Estimate by 33.7%. The increase in revenues was due to higher premiums, policy charges and fee income and net investment income.The Hartford Financial Services Group, Inc. HIG reported third-quarter 2024 adjusted operating earnings of $2.53 per share, which beat the Zacks Consensus Estimate by 1.6%. The bottom line increased 10.5% year over year.Operating revenues of HIG amounted to $4.7 billion, which improved 10.9% year over year in the quarter under review. The top line beat the consensus mark by 1.1%.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Hartford Financial Services Group, Inc. (HIG): Free Stock Analysis Report MetLife, Inc. (MET): Free Stock Analysis Report Prudential Financial, Inc. (PRU): Free Stock Analysis Report Assurant, Inc. (AIZ): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks