Assurant sees net income increase 21% in Q2 2024

US specialty insurance group Assurant has reported a GAAP net income of $188.7 million for the second quarter of 2024, representing a 21% increase compared to the $156.3 million reported in the same period last year.

According to the company, this increase was mainly due to a lower after-tax loss from non-core operations and a lower effective tax rate.

At the same time, Adjusted EBITDA remained relatively flat at $323.4 million compared to the prior year period of $323.1 million.

Results included $32.3 million of higher pre-tax reportable catastrophes. Excluding reportable catastrophes, Adjusted EBITDA increased 10%, or 11% on a constant currency basis, to $369.1 million, primarily from higher top-line growth in Homeowners within Global Housing.

Adjusted earnings, excluding reportable catastrophes, per diluted share, increased 17% to $4.77 compared to the prior year period of $4.09, primarily from higher Global Housing earnings.

The firm also reported net earned premiums, fees and other income from the Global Lifestyle and Global Housing segments, totaling $2.82 billion compared to $2.65 billion in Q2 2023, up 6%, or 7% on a constant currency basis, driven by growth across both segments.

Net earned premiums, fees and other income from the Global Lifestyle segment for Q2 2024 increased 4%, to $2,183.5 million, compared to the $2,108.9 million reported in Q2 2023.

According to Assurant, this was primarily driven by Connected Living from mobile growth, including contributions from newly launched trade-in programs and global device protection programs.

The Global Housing segment also saw increased net earned premiums in Q2 2024, to $633.6 million form the $536.6 million reported in the same period the year prior.

This increase was mainly driven by Homeowners top-line growth, including growth in policies in-force and higher average premiums within lender-placed, Assurant noted.

Keith Demmings, Assurant President and CEO, stated: “Our second quarter and year-to-date results demonstrate the continued strength of our portfolio of businesses, led by strong performance in Global Housing.

“Our performance highlights the compelling products and services we provide to our clients and end-consumers as well as the attractiveness of Assurant as an investment. As we enter the second half of 2024, we will continue to strengthen our position as a market leader throughout our businesses by investing in new client partnerships and launching innovative solutions.”

Demmings added: “Given our strong year-to-date performance, we are increasing our 2024 enterprise outlook. We now expect Adjusted EBITDA to increase high single-digits and Adjusted earnings per share to grow low double-digits, both excluding reportable catastrophes. In addition, we expect to be on the high end of our $200-$300 million share repurchase range, reflecting our strong capital position and comprehensive catastrophe reinsurance program.”

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