Assurant Inc (AIZ) Reports Significant Earnings Growth in Q3 2023
Assurant Inc (NYSE:AIZ) reported a GAAP net income of $190.1 million in Q3 2023, a significant increase from $7.3 million in Q3 2022.
Adjusted EBITDA for Q3 2023 stood at $330.7 million, marking an 185% increase from $116.0 million in Q3 2022.
GAAP net income per diluted share increased to $3.54 from $0.14 in the prior year period.
The company returned $87 million to shareholders via share repurchases and common stock dividends in Q3 2023.
Assurant Inc (NYSE:AIZ), a leading global business services company, released its Q3 2023 earnings report on October 31, 2023. The company reported significant earnings and EPS growth, driven by strong performance in Global Housing and Global Lifestyle. The company has also increased its 2023 outlook, expecting mid- to high-teens growth in Adjusted EBITDA, with Adjusted EPS growth to exceed Adjusted EBITDA.
Financial Highlights
Assurant Inc (NYSE:AIZ)'s GAAP net income for Q3 2023 was $190.1 million, a substantial increase from $7.3 million in Q3 2022. The GAAP net income per diluted share increased to $3.54 from $0.14 in the prior year period. Adjusted EBITDA, excluding reportable catastrophes, increased to $357.1 million from $239.6 million in Q3 2022. Adjusted earnings, excluding reportable catastrophes, per diluted share, increased to $4.68 from $2.81 in Q3 2022.
Results for the third quarter were exceptionally strong and outperformed our expectations," said Assurant President and CEO Keith Demmings. "Global Housings top-line momentum and improving loss experience combined with Global Lifestyles growing U.S. mobile business produced significant year-over-year earnings growth."
Performance Analysis
The Global Lifestyle segment reported an Adjusted EBITDA of $191.8 million, a 7% increase from Q3 2022. The Global Housing segment reported an Adjusted EBITDA of $165.1 million, a significant increase from -$38.5 million in Q3 2022. The Corporate and Other segment reported an Adjusted EBITDA loss of $26.2 million, a 5% increase from the loss of $24.9 million in Q3 2022.
Net earned premiums, fees, and other income from the Global Lifestyle and Global Housing segments totaled $2.66 billion, up 8% from $2.47 billion in Q3 2022. The increase was mainly due to an increase in Homeowners within Global Housing and prior period sales in Global Automotive within Global Lifestyle.
2023 Outlook
Assurant Inc (NYSE:AIZ) has increased its 2023 outlook, expecting mid- to high-teens growth in Adjusted EBITDA, with Adjusted EPS growth to exceed Adjusted EBITDA. The company expects Adjusted EBITDA, excluding reportable catastrophes, to increase by mid- to high-teens, driven by significant growth in Global Housing, partially offset by a modest decline in Global Lifestyle.
The company also expects the Adjusted earnings, excluding reportable catastrophes, per diluted share growth rate to exceed the growth rate in Adjusted EBITDA, excluding reportable catastrophes, due to higher earnings growth, a lower effective tax rate, and the impact of share repurchases.
Explore the complete 8-K earnings release (here) from Assurant Inc for further details.
This article first appeared on GuruFocus.
