ASSURANT INC
For the period ended Mar 31, 2025. Filed May 8, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 8, 2025
AIZ$307.00+0.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0001267238-24-000047
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001267238-25-000026
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 138 previous paragraphs and 126 current paragraphs.
63 unchanged; 50 reworded; 12 added; 25 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Global Lifestyle Adjusted EBITDA decreased $9.9 million, or 5%, to $197.8 million for First Quarter 2025 from $207.7 million for First Quarter 2024, driven primarily by lower results in Connected Living. Excluding a previously disclosed one-time client contract benefit in the First Quarter 2024 of $6.9 million and the impact of unfavorable foreign exchange of $5.7 million, underlying growth was driven by Connected Living, including contributions from a new financial services program, partially offset by lower results in mobile. Global Automotive results were largely stable, as lower investment income and the impact of unfavorable foreign exchange was offset by improved loss experience.
Current report
Net income decreased $89.8 million, or 38%, to $146.6 million for First Quarter 2025 from $236.4 million for First Quarter 2024, primarily due to $113.7 million of higher after-tax reportable catastrophes, lower Global Lifestyle earnings and higher net realized losses on investments. The decrease in net income was partially offset by higher Global Housing earnings, excluding the impact of reportable catastrophes.
Current report
Adjusted EBITDA decreased $9.9 million, or 5%, to $197.8 million for First Quarter 2025 from $207.7 million for First Quarter 2024, primarily driven by declines in Connected Living from lower domestic device protection results in mobile, a one-time client contract benefit in extended service contracts of $6.9 million in First Quarter 2024 and the unfavorable impact of foreign exchange. The decrease was partially offset by higher contributions from a newly launched financial services program.
Current report
Total benefits, losses and expenses increased $122.5 million, or 6%, to $2.19 billion for First Quarter 2025 from $2.07 billion for First Quarter 2024. Selling and underwriting expenses increased $83.3 million, or 7%, primarily due to an increase in commission expenses in Connected Living, mainly related to the growth from global mobile device protection programs, and Global Automotive. Policyholder benefits increased $24.7 million, or 6%, primarily due to a newly launched program in financial services. General expenses increased $15.7 million, or 6% primarily due to higher employee-related and information technology expenses to support growth initiatives.
Current report
Adjusted EBITDA decreased $80.1 million, or 42%, to $112.4 million for First Quarter 2025 from $192.5 million for First Quarter 2024, mainly due to $143.8 million of higher pre-tax reportable catastrophes (of which approximately $125 million were from the California wildfires, inclusive of estimated recoveries from subrogation), higher expenses to support growth and higher catastrophe reinsurance premiums. The decrease in Adjusted EBITDA was partially offset by continued growth from higher policies in-force, premium rates and average insured values within Homeowners, favorable non-catastrophe loss experience, growth in Renters and Other, and higher net investment income.
Current report
Adjusted EBITDA increased $1.5 million, or 5%, to $(28.0) million for First Quarter 2025 from $(29.5) million for First Quarter 2024. The change in results was primarily due to lower third-party expenses.
Current report
Total benefits, losses and expenses decreased $1.1 million, or 3%, to $34.2 million for First Quarter 2025 from $35.3 million for First Quarter 2024, primarily driven by lower third-party expenses.
Current report
Net investment income decreased $1.9 million, or 1%, to $124.8 million for First Quarter 2025 from $126.7 million for First Quarter 2024. The decrease was primarily driven by reduced partnership income and lower yields on cash and short-term investments, partially offset by an increase in fixed maturity securities related to higher yields and assets.
Current report
Net realized losses on investments and fair value changes to equity securities increased $7.2 million, or 82%, to $16.0 million for First Quarter 2025 from $8.8 million for First Quarter 2024. The increase was primarily driven by sales of fixed maturity securities at a loss and lower fair value changes from equity securities due to reduced investments in common stocks, partially offset by fewer impairments recorded in First Quarter 2025.
Current report
Net cash provided by operating activities was $392.4 million for First Quarter 2025 compared to net cash provided by operating activities of $82.5 million for First Quarter 2024. The change in net operating cash flows was largely attributable to business growth in Homeowners, growth in global mobile device protection programs and a newly launched program in financial services. Also contributing to the increase was the timing of vendor payments. This was partially offset by higher net paid claims.
Current report
Limited Recourse Note
Current report
In 2024, we entered into a financing arrangement pursuant to which we are able to issue a $100 million limited recourse note and, in return, obtain a $100 million asset-backed note from a Delaware master trust. As of March 31, 2025, no notes have been issued under this arrangement.
Removed paragraphs (25)
Previous report
Global Lifestyle Adjusted EBITDA decreased $7.5 million, or 4%, to $184.3 million for Third Quarter 2024 from $191.8 million for Third Quarter 2023, primarily driven by unfavorable foreign exchange and modestly lower results within Global Automotive, where elevated losses within select ancillary products were partially offset by higher investment income. Excluding the impact of foreign exchange, Connected Living was flat as investments in new client programs and capabilities to support future growth were offset by growth in mobile device protection programs from increased subscribers, particularly in the U.S.
Previous report
In fourth quarter 2024, Hurricane Milton is expected to be a reportable catastrophe event with losses in the range of $75.0 million to $110.0 million pre-tax. There is inherent variability in estimates of early loss projections and claims severity, particularly in high-damage regions, and therefore, the estimate may change as additional information emerges. For more information, see Note 15 to the Consolidated Financial Statements included elsewhere in this Report.
Previous report
Net income decreased $56.3 million, or 30%, to $133.8 million for Third Quarter 2024 from $190.1 million for Third Quarter 2023, primarily due to $88.3 million of higher after-tax reportable catastrophes and $10.3 million of higher after-tax depreciation expense mainly related to the previously disclosed implementation of the integrated global financial systems and infrastructure and other internally developed software. The decrease in net income was partially offset by higher Global Housing earnings, excluding the impact of reportable catastrophes, and $11.3 million of lower after-tax restructuring costs (see Note 13 to the Consolidated Financial Statements included elsewhere in this Report).
Previous report
Net income increased $98.9 million, or 22%, to $558.9 million for Nine Months 2024 from $460.0 million for Nine Months 2023, primarily driven by higher earnings in Global Housing, excluding the impact of reportable catastrophes, $24.4 million of lower after-tax losses from our non-core operations, mainly from sharing economy, a lower annualized effective tax rate, mainly due to transferable tax credits and a favorable mix of foreign business, and a $21.1 million favorable change in after-tax foreign exchange related gains (losses) (including gains (losses) from foreign exchange transactions and derivatives and from the remeasurement of net monetary assets in Argentina). The increase in net income was partially offset by $84.3 million of higher after-tax reportable catastrophes and $17.3 million of higher after-tax depreciation expense, as described above.
Previous report
Adjusted EBITDA decreased $7.5 million, or 4%, to $184.3 million for Third Quarter 2024 from $191.8 million for Third Quarter 2023, primarily driven by ongoing elevated losses within select ancillary products in Global Automotive, higher expenses for investments in new client programs and capabilities in Connected Living and the unfavorable impact of foreign exchange. The decrease was partially offset by higher net investment income and growth from mobile device protection programs in Connected Living from increased subscribers, particularly in the U.S.
Previous report
Total revenues increased $146.0 million, or 7%, to $2.34 billion for Third Quarter 2024 from $2.19 billion for Third Quarter 2023. Fees and other income increased $114.6 million, or 41%, primarily due to contributions from newly launched mobile trade-in programs. Net earned premiums increased $29.1 million, or 2%, primarily driven by Connected Living growth from global mobile device protection programs, partially offset by a decline in U.S. extended service contracts and the unfavorable impact of foreign exchange. Net investment income increased $2.3 million, or 3%, primarily due to higher yields and asset balances in fixed maturity securities, partially offset by lower cash and cash equivalents and short-term investments.
Previous report
Total benefits, losses and expenses increased $153.5 million, or 8%, to $2.15 billion for Third Quarter 2024 from $2.00 billion for Third Quarter 2023. Underwriting, selling, general and administrative expenses increased $127.1 million, or 8%, primarily due to an increase in Connected Living expenses, mainly from higher cost of sales from newly launched mobile trade-in programs and higher commission expenses due to growth from global mobile device protection programs, partially offset by the favorable impact of foreign exchange and lower commission expenses for Global Automotive and U.S. extended service contracts in Connected Living. Policyholder benefits increased $26.4 million, or 6%, primarily due to ongoing elevated claims costs in Global Automotive, as described above, and an increase in global mobile device protection subscribers in Connected Living, partially offset by lower losses for extended service contracts in line with the decrease in net earned premiums.
Previous report
Adjusted EBITDA decreased $6.0 million to $581.7 million for Nine Months 2024 from $587.7 million for Nine Months 2023, primarily due to ongoing elevated claims costs in Global Automotive, mainly from elevated losses in select ancillary products, as well as higher labor and parts costs due to inflation, higher expenses for investments in new client programs and capabilities in Connected Living and the unfavorable impact of foreign exchange. The decrease in Adjusted EBITDA was partially offset by higher net investment income, as well as higher U.S. financial services profitability and growth in domestic mobile device protection programs in Connected Living.
Previous report
Total benefits, losses and expenses increased $392.4 million, or 7%, to $6.30 billion for Nine Months 2024 from $5.91 billion for Nine Months 2023. Underwriting, selling, general and administrative expenses increased $309.8 million, or 7%, primarily due to an increase in Connected Living expenses, mainly from higher cost of sales from newly launched mobile trade-in programs and higher commission expenses due to growth from global mobile device protection programs, partially offset by the favorable impact of foreign exchange and lower commission expenses for U.S. extended service contracts in Connected Living and Global Automotive. Policyholder benefits increased $82.6 million, or 7%, primarily due to ongoing elevated claims costs in Global Automotive, as described above, and from higher claims in the global mobile device protection business in Connected Living, partially offset by lower losses for extended service contracts in Connected Living in line with the decrease in net earned premiums.
Previous report
Adjusted EBITDA decreased $72.7 million, or 44%, to $92.4 million for Third Quarter 2024 from $165.1 million for Third Quarter 2023, mainly due to $110.6 million of higher pre-tax reportable catastrophes and a $27.5 million non-run rate adjustment related to a change in earnings pattern assumptions. The decrease in Adjusted EBITDA was partially offset by continued growth within Homeowners, primarily from higher policies in-force from new lender-placed programs and portfolios and increased voluntary insurance market pressure, higher premium rates and average insured values, and $30.1 million of favorable year-over-year non-catastrophe prior period reserve development. Third Quarter 2024 had $44.7 million of favorable non-catastrophe prior period reserve development compared to $14.6 million in Third Quarter 2023.
Previous report
Adjusted EBITDA increased $57.7 million, or 15%, to $445.8 million for Nine Months 2024 from $388.1 million for Nine Months 2023, mainly due to continued growth from higher policies in-force, average insured values and rates within Homeowners and $44.7 million of favorable year-over-year net impact to non-catastrophe prior year reserve development. Nine Months 2024 had $85.1 million of favorable non-catastrophe prior year reserve development compared to $40.4 million in Nine Months 2023. The increase in Adjusted EBITDA was also driven by ongoing expense leverage from scale and operating efficiencies and higher net investment income. The increase in Adjusted EBITDA was partially offset by $106.1 million of higher reportable catastrophes and a $27.5 million non-run rate adjustment related to a change in earnings pattern assumptions.
Previous report
Total revenues increased $226.6 million, or 14%, to $1.90 billion for Nine Months 2024 from $1.67 billion for Nine Months 2023. Net earned premiums increased $176.6 million, or 12%, primarily driven by Homeowners from higher lender-placed policies in-force and average insured values, as well as higher premium rates and growth across various specialty products, partially offset by the non-run rate adjustment described above and exits from certain international markets. Fees and other income increased $35.9 million, or 38%, mainly driven by the reclassification described above. Net investment income increased $14.1 million, or 19%, primarily due to higher yields and asset balances on fixed maturity securities, cash and cash equivalents and short-term investments.
Previous report
Total benefits, losses and expenses increased $168.9 million, or 13%, to $1.45 billion for Nine Months 2024 from $1.29 billion for Nine Months 2023. Policyholder benefits increased $118.1 million, or 17%, primarily due to higher reportable catastrophe losses and non-catastrophe losses from exposure growth, partially offset by the favorable year-over-year non-catastrophe prior year reserve development. Underwriting, selling, general and administrative expenses increased $50.8 million, or 8%, primarily due to the reclassification described above and higher costs associated with growth.
Previous report
Adjusted EBITDA was $(29.8) million for Third Quarter 2024 compared to $(26.2) million for Third Quarter 2023. The change in results was primarily due to higher third-party consulting expenses to support enterprise growth initiatives and higher employee-related expenses, partially offset by higher net investment income from higher asset balances in fixed maturity securities.
Previous report
Total benefits, losses and expenses increased $4.1 million, or 12%, to $37.7 million for Third Quarter 2024 from $33.6 million for Third Quarter 2023, primarily driven by higher third-party consulting expenses to support enterprise growth initiatives and higher employee-related expenses.
Previous report
Adjusted EBITDA was $(86.5) million for Nine Months 2024 compared to $(79.1) million for Nine Months 2023. The change in results was primarily due to higher third-party consulting expenses to support enterprise growth initiatives and higher employee-related expenses, partially offset by higher net investment income.
Previous report
Total revenues increased $5.1 million, or 32%, to $20.9 million for Nine Months 2024 from $15.8 million for Nine Months 2023, primarily driven by an increase in net investment income of $4.9 million, or 31%, mostly due to higher yields and asset balances in fixed maturity securities.
Previous report
Total benefits, losses and expenses increased $12.5 million, or 13%, to $107.4 million for Nine Months 2024 from $94.9 million for Nine Months 2023, primarily driven by higher third-party consulting expenses to support enterprise growth initiatives and higher employee-related expenses.
Previous report
Net investment income increased $4.2 million, or 3%, to $129.7 million for Third Quarter 2024 from $125.5 million for Third Quarter 2023. The increase was primarily driven by higher yields and asset balances in fixed maturity securities.
Previous report
Net realized losses on investments and fair value changes to equity securities decreased $0.8 million, or 4%, to $18.3 million for Third Quarter 2024 from $19.1 million for Third Quarter 2023. The decrease was primarily driven by realized gains from changes in fair value of equity securities, which was partially offset by realized losses on sales of fixed maturity securities.
Previous report
Net investment income increased $37.5 million, or 11%, to $381.1 million for Nine Months 2024 from $343.6 million for Nine Months 2023. The increase was primarily driven by higher yields and asset balances in fixed maturity securities.
Previous report
Net realized losses on investments and fair value changes to equity securities decreased $3.0 million, or 6%, to $46.7 million for Nine Months 2024 from $49.7 million for Nine Months 2023. The decrease was primarily driven by unrealized gains from changes in fair value of equity securities and realized gains on sales of equity securities, which was partially offset by realized losses on sales of fixed maturity securities.
Previous report
As of September 30, 2024, we owned $ $17.4 million of securities guaranteed by financial guarantee insurance companies. Included in this a mount was $15.8 million of municipal securities, whose credit rating was A+ with the guarantee, but would have had a rating AA- without the guarantee.
Previous report
For more information on our investments, see Notes 6 and 7 to the Consolidated Financial Statements included elsewhere in this Report.
Previous report
Net cash provided by operating activities was $1.23 billion for Nine Months 2024 compared to net cash provided by operating activities of $775.5 million for Nine Months 2023. The change in net operating cash flows was largely attributable to the timing of collections of premiums and fees in our mobile business operations and timing of tax payments as we received a refund in 2024 related to prior year tax returns as compared to a payment in 2023. This was partially offset by the timing of payments to various vendors for the acquisition of mobile devices used to meet insurance claims or generate profits through sales to third parties, higher net paid claims and an increase in employee incentive-based payments largely based on the performance of the Company.
Reworded paragraphs (50)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) and the annual audited consolidated financial statements for the year ended December 31, 2023 and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”) filed with the U.S. Securities and Exchange Commission (the “SEC”) and the unaudited consolidated financial statements for the three and nine months ended September 30, 2024 and accompanying notes (the “Consolidated Financial Statements”) included elsewhere in this Quarterly Report on Form 10-Q (this “Report”). The following discussion and analysis covers the three and nine months ended September 30, 2024 (“Third Quarter 2024” and “Nine Months 2024”) and the three and nine months ended September 30, 2023 (“Third Quarter 2023” and “Nine Months 2023”).
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) and the annual audited consolidated financial statements for the year ended December 31, 2024 and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”) filed with the U.S. Securities and Exchange Commission (the “SEC”) and the unaudited consolidated financial statements for the three months ended March 31, 2025 and accompanying notes (the “Consolidated Financial Statements”) included elsewhere in this Quarterly Report on Form 10-Q (this “Report”). The following discussion and analysis covers the three months ended March 31, 2025 (“First Quarter 2025”) and the three months ended March 31, 2024 (“First Quarter 2024”).
Previous wording
(xiii)the impact of general economic, financial market and political conditions (including the Israel-Hamas war) and conditions in the markets in which we operate, including the current inflationary environment;
Current wording
(i)the impact of general economic, financial market and political conditions and conditions in the markets in which we operate, including inflation, tariff policies in the United States and abroad, global supply chain impacts and recessionary pressures;
Previous wording
(i)the loss of significant clients, distributors or other parties with whom we do business, or if we are unable to renew contracts with them on favorable terms, or if they disintermediate us, or if those parties face financial, reputational or regulatory issues;
Current wording
(ii)the loss of significant clients, distributors or other parties with whom we do business, or if we are unable to renew contracts with them on favorable terms, or if they disintermediate us, or if those parties face financial, reputational or regulatory issues;
Previous wording
(ii)significant competitive pressures, changes in customer preferences and disruption;
Current wording
(iii)significant competitive pressures, changes in customer preferences and disruption;
Previous wording
(iii)the failure to execute our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce;
Current wording
(iv)the failure to execute our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce;
Previous wording
(iv)the failure to find suitable acquisitions at attractive prices, integrate acquired businesses or divest of non-strategic businesses effectively or achieve organic growth;
Current wording
(v)the failure to find suitable acquisitions at attractive prices, integrate acquired businesses or divest of non-strategic businesses effectively or achieve organic growth;
Previous wording
(v)our inability to recover should we experience a business continuity event;
Current wording
(vi)our inability to recover should we experience a business continuity event;
Previous wording
(vi)the failure to manage vendors and other third parties on whom we rely to conduct business and provide services to our clients;
Current wording
(vii)the failure to manage vendors and other third parties on whom we rely to conduct business and provide services to our clients;
Previous wording
(vii)risks related to our international operations;
Current wording
(viii)risks related to our international operations;
Previous wording
(viii)declines in the value and availability of mobile devices, and regulatory compliance or other risks in our mobile business;
Current wording
(ix)declines in the value and availability of mobile devices, and regulatory compliance or other risks in our mobile business;
Previous wording
(ix)our inability to develop and maintain distribution sources or attract and retain sales representatives and executives with key client relationships;
Current wording
(x)our inability to develop and maintain distribution sources or attract and retain sales representatives and executives with key client relationships;
Previous wording
(x)risks associated with joint ventures, franchises and investments in which we share ownership and management with third parties;
Current wording
(xi)risks associated with joint ventures, franchises and investments in which we share ownership and management with third parties;
Previous wording
(xi)the impact of catastrophe and non-catastrophe losses, including as a result of the current inflationary environment and climate change;
Current wording
(xii)the impact of catastrophe and non-catastrophe losses, including as a result of the current inflationary environment and climate change;
Previous wording
(xii)negative publicity relating to our business, industry or clients;
Current wording
(xiii)negative publicity relating to our business, industry or clients;
Previous wording
As of September 30, 2024, we had two reportable operating segments which are defined based on the manner in which the Company’s chief operating decision maker, our Chief Executive Officer (“CEO”), reviews the business to assess performance and allocate resources, and which align to the nature of the products and services offered:
Current wording
As of March 31, 2025, we had two reportable operating segments which are defined based on the manner in which the Company’s chief operating decision maker, our CEO, reviews the business to assess performance and allocate resources, and which align to the nature of the products and services offered:
Previous wording
•Global Lifestyle: includes mobile device solutions (including extended service contracts, insurance policies and related services), extended service contracts and related services for consumer electronics and appliances, and credit and other insurance products (referred to as “Connected Living”); and vehicle protection services, commercial equipment services and other related services (referred to as “Global Automotive”); and
Current wording
•Global Lifestyle: includes mobile device solutions (including extended service contracts, insurance policies and related services), extended service contracts and related services for consumer electronics and appliances, and financial services and other insurance products (referred to as “Connected Living”); and vehicle protection services, commercial equipment services and other related services (referred to as “Global Automotive”); and
Previous wording
We define Adjusted EBITDA, our segment measure of profitability, as net income, excluding net realized gains (losses) on investments and fair value changes to equity securities, non-core operations (which consists of certain businesses which we have fully exited or expect to fully exit, including the long-tail commercial liability businesses (sharing economy and small commercial businesses), certain legacy long-duration insurance policies and our operations in mainland China (not Hong Kong)), restructuring costs related to strategic exit activities (outside of normal periodic restructuring and cost management activities), Assurant Health runoff operations, interest expense, provision (benefit) for income taxes, depreciation expense, amortization of purchased intangible assets, as well as other highly variable or unusual items.
Current wording
We define Adjusted EBITDA, our segment measure of profitability, as net income, excluding net realized gains (losses) on investments and fair value changes to equity securities, interest expense, provision (benefit) for income taxes, depreciation expense, amortization of purchased intangible assets, as well as other highly variable or unusual items.
Previous wording
Consolidated net income decreased $56.3 million, or 30%, to $133.8 million for Third Quarter 2024 from $190.1 million for Third Quarter 2023, primarily due to higher reportable catastrophes within Global Housing. This was partially offset by higher top-line growth in Homeowners within Global Housing.
Current wording
Consolidated net income decreased $89.8 million, or 38%, to $146.6 million for First Quarter 2025 from $236.4 million for First Quarter 2024, primarily due to higher reportable catastrophes within Global Housing. The decrease was partially offset by growth within Global Housing, excluding the impact of reportable catastrophes.
Previous wording
Global Lifestyle net earned premiums, fees and other income increased $143.7 million, or 7%, to $2.25 billion for Third Quarter 2024 from $2.11 billion for Third Quarter 2023, primarily driven by Connected Living from mobile growth, including contributions from newly launched trade-in programs and global device protection programs.
Current wording
Global Lifestyle net earned premiums, fees and other income increased $118.8 million, or 5%, to $2.31 billion for First Quarter 2025 from $2.19 billion for First Quarter 2024, primarily driven by Connected Living from growth in global mobile device protection and a new financial services program.
Previous wording
Global Housing Adjusted EBITDA decreased $72.7 million, or 44%, to $92.4 million for Third Quarter 2024 from $165.1 million for Third Quarter 2023, primarily due to $110.6 million of higher pre-tax reportable catastrophes. Excluding reportable catastrophes, Adjusted EBITDA increased $37.9 million, or 20%, primarily from continued top-line growth within Homeowners, including higher policies in-force from new lender-placed programs and portfolios and increased voluntary insurance market pressure, and $30.1 million of favorable year-over-year prior period reserve development. The increase was partially offset by a $27.5 million non-run rate adjustment related to a change in earnings pattern assumptions.
Current wording
Global Housing Adjusted EBITDA decreased $80.1 million, or 42%, to $112.4 million for First Quarter 2025 from $192.5 million for First Quarter 2024, primarily due to $143.8 million of higher pre-tax reportable catastrophes, of which approximately $125 million was from the California wildfires, inclusive of estimated recoveries from subrogation. Excluding reportable catastrophes, Adjusted EBITDA increased $63.7 million, or 31%, primarily from continued top-line growth within Homeowners, including higher policies in-force from voluntary insurance market pressure, and favorable non-catastrophe loss experience from lower claims frequency. Results included $26.4 million of favorable prior year reserve development, compared to $22.0 million in first quarter 2024.
Previous wording
Global Housing net earned premiums, fees and other income increased $48.6 million, or 9%, to $603.8 million for Third Quarter 2024 from $555.2 million for Third Quarter 2023, mainly driven by Homeowners top-line growth, including growth in policies in-force and higher average premiums within lender-placed insurance as well as growth across various specialty products, partially offset by the non-run rate adjustment mentioned above.
Current wording
Global Housing net earned premiums, fees and other income increased $84.6 million, or 15%, to $656.8 million for First Quarter 2025 from $572.2 million for First Quarter 2024, mainly driven by Homeowners top-line growth, including growth in policies in-force and higher average premiums within lender-placed, as well as growth across various specialty products.
Previous wording
Corporate and Other Adjusted EBITDA was $(29.8) million for Third Quarter 2024 compared to $(26.2) million for Third Quarter 2023, primarily driven by higher third-party and employee-related expenses.
Current wording
Corporate and Other Adjusted EBITDA increased $1.5 million, or 5% to $(28.0) million for First Quarter 2025 from $(29.5) million for First Quarter 2024, primarily driven by lower third-party expenses.
Previous wording
Our results depend on, among other things, the appropriateness of our product pricing, underwriting, the accuracy of our reserving methodology for future policyholder benefits and claims, the frequency and severity of reportable and non-reportable catastrophes, returns on and values of invested assets, our investment income, and our ability to realize greater operational efficiencies and manage our expenses. Our results also depend on our ability to profitably grow our businesses, including our Connected Living and Global Automotive businesses, and the performance of our Homeowners business. Factors affecting these items, including conditions in the financial markets, the global economy, political conditions and the markets in which we operate, fluctuations in exchange rates, interest rates and inflation, including the current period of inflationary pressures which have impacted claims costs primarily in the Homeowners and the Global Automotive businesses, may have a material adverse effect on our results of operations or financial condition. For more information on these and other factors that could affect our results, see “Item 1A—Risk Factors” below and in our 2023 Annual Report, and “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Factors Affecting Results” in our 2023 Annual Report.
Current wording
Our results depend on, among other things, the appropriateness of our product pricing, underwriting, the accuracy of our reserving methodology for future policyholder benefits and claims, the frequency and severity of reportable and non-reportable catastrophes, returns on and values of invested assets, our investment income, and our ability to realize greater operational efficiencies and manage our expenses. Our results also depend on our ability to profitably grow our businesses, including our Connected Living, Global Automotive, and Renters and Other businesses, and the performance of our Homeowners business. Factors affecting these items, including tariffs, consumer demand and global supply chain disruptions, conditions in the financial markets, the global economy and recessionary pressures, political conditions and the markets in which we operate, fluctuations in exchange rates, interest rates and inflation (which have impacted claims costs), may have a material adverse effect on our results of operations or financial condition. Tariff policies in the U.S. and abroad could impact claims costs and may affect consumer demand for certain products. For more information on these and other factors that could affect our results, see “Item 1A—Risk Factors” below and in our 2024 Annual Report, and “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Factors Affecting Results” in our 2024 Annual Report.
Previous wording
Our results may be impacted by our ability to continue to grow in the markets in which we operate, which will be impacted by our ability to provide a superior digital-first customer experience, including from our investments in technology and digital initiatives, capitalize on the connected home opportunity and investments to onboard and ramp-up new business. Our mobile business is subject to volatility in mobile device trade-in volumes and margins based on the actual and anticipated timing of the release of new devices, carrier promotional programs and sales prices for used devices, as well as to changes in consumer preferences. Our Homeowners revenues are impacted by changes in the housing and voluntary insurance markets. In addition, across many of our businesses, we must respond to competitive pressures, including the threat of disruption and competition for talent, which has increased due to labor shortages and wage inflation. See “Item 1A—Risk Factors—Business, Strategic and Operational Risks—Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations”, “—Our mobile business is subject to the risk of declines in the value and availability of mobile devices, and to regulatory compliance and other risks” and “—The success of our business depends on the execution of our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce” in our 2023 Annual Report.
Current wording
Our results may also be impacted by our ability to continue to grow in the markets in which we operate, which will be impacted by our ability to provide a superior customer experience, including from our investments in technology and digital initiatives, capitalize on the connected home opportunity and investments to onboard and ramp-up new business. Our mobile business is subject to volatility in mobile device trade-in volumes and margins based on the actual and anticipated timing of the release of new devices, carrier promotional programs and sales prices for used devices, as well as to changes in consumer preferences. Our Homeowners revenue is impacted by changes in the housing market, as well as the voluntary insurance market. In addition, across many of our businesses, we must respond to competitive pressures, including the threat of disruption and competition for talent, which has increased due to labor shortages and wage inflation. See “Item 1A—Risk Factors—Business, Strategic and Operational Risks—Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations”, “—Our mobile business is subject to the risk of declines in the value and availability of mobile devices, and to regulatory compliance and other risks” and “—The success of our business depends on the execution of our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce” in our 2024 Annual Report.
Previous wording
Our 2023 Annual Report describes the accounting policies and estimates that are critical to the understanding of our results of operations, financial condition and liquidity. The accounting policies and estimation process described in the 2023 Annual Report were consistently applied to the unaudited interim Consolidated Financial Statements for Third Quarter 2024.
Current wording
Our 2024 Annual Report describes the accounting policies and estimates that are critical to the understanding of our results of operations, financial condition and liquidity. The accounting policies and estimation process described in the 2024 Annual Report were consistently applied to the unaudited interim Consolidated Financial Statements for First Quarter 2025.
Previous wording
Total revenues increased $386.4 million, or 6%, to $6.89 billion for Nine Months 2024 from $6.50 billion for Nine Months 2023. Fees and other income increased $269.2 million, or 34%, primarily due to contributions from newly launched mobile trade-in programs. Net earned premiums increased $96.6 million, or 2%, primarily driven by growth from global mobile device protection programs in Connected Living and from prior period sales in Global Automotive, partially offset by a decline in U.S. extended service contracts in Connected Living and the unfavorable impact of foreign exchange. Net investment income increased $20.6 million, or 8%, primarily due to higher yields and asset balances in fixed maturity securities.
Current wording
Total revenues increased $112.6 million, or 5%, to $2.39 billion for First Quarter 2025 from $2.28 billion for First Quarter 2024. Net earned premiums increased $111.3 million, or 6%, primarily driven by growth from global mobile device protection programs, and a newly launched program within financial services in Connected Living, and growth within Global Automotive, partially offset by the unfavorable impact of foreign exchange and a decline in U.S. extended service contracts. Fees and other income increased $7.5 million, or 2%, primarily due to contributions from a newly launched program in financial services. Net investment income decreased $6.2 million, or 7%, primarily due to lower income from real estate and alternatives, and lower cash and short-term investments income.
Previous wording
Total revenues increased $50.7 million, or 9%, to $635.5 million for Third Quarter 2024 from $584.8 million for Third Quarter 2023. Net earned premiums increased $35.1 million, or 7%, primarily driven by Homeowners from higher lender-placed policies in-force, premium rates and average insured values as described above and growth across various specialty products, partially offset by a non-run rate adjustment described above. Fees and other income increased $13.5 million, or 41%, driven by reclassification of certain service fees to fee income from an expense account. Net investment income increased $2.1 million, or 7%, primarily due to higher yields and asset balances in fixed maturity securities.
Current wording
Total revenues increased $89.8 million, or 15%, to $690.5 million for First Quarter 2025 from $600.7 million for First Quarter 2024. Net earned premiums increased $74.7 million, or 14%, primarily driven by Homeowners from higher lender-placed policies in-force, higher premium rates and average insured values, growth across various Specialty products, and growth in Renters and Other primarily from a block of newly acquired renters policies, partially offset by higher catastrophe reinsurance premiums from the 2024 program restructuring. Fees and other income increased $9.9 million, or 31%, primarily driven by the reclassification of certain service fees from an expense account. Net investment income increased $5.2 million, or 18%, primarily due to higher yields and invested asset balances.
Previous wording
Total benefits, losses and expenses increased $123.4 million, or 29%, to $543.1 million for Third Quarter 2024 from $419.7 million for Third Quarter 2023. Policyholder benefits increased $104.6 million, or 48%, primarily due to higher reportable catastrophe losses, partially offset by lower non-catastrophe losses from favorable year-over-year prior period reserve development. Underwriting, selling, general and administrative expenses increased $18.8 million, or 9%, primarily due to the reclassification described above, as well as higher costs associated with growth.
Current wording
Total benefits, losses and expenses increased $169.9 million, or 42%, to $578.1 million for First Quarter 2025 from $408.2 million for First Quarter 2024. Policyholder benefits increased $132.7 million, or 66%, primarily due to higher reportable catastrophe losses, partially offset by $22.9 million of lower non-catastrophe losses and $4.4 million of favorable year-over-year non-catastrophe prior year reserve development. First Quarter 2025 had $26.4 million of favorable prior year reserve development compared to $22.0 million in First Quarter 2024. General expenses increased $35.8 million, or 21%, primarily due to higher costs associated with growth, the reclassification described above, and one-time assessment expenses for the California FAIR Plan associated with the California wildfires.
Previous wording
Total revenues increased $0.5 million, or 7%, to $7.9 million for Third Quarter 2024 from $7.4 million for Third Quarter 2023, primarily driven by an increase in net investment income of $0.5 million, or 7%, mostly due to higher asset balances in fixed maturity securities.
Current wording
Total revenues increased $0.4 million, or 7%, to $6.2 million for First Quarter 2025 from $5.8 million for First Quarter 2024, primarily driven by an increase in net investment income of $0.2 million, or 4%, mostly due to higher invested assets.
Previous wording
We had total investments of $8.97 billion and $8.22 billion as of September 30, 2024 and December 31, 2023, respectively. Net unrealized losses on our fixed maturity securities portfolio decreased by $210.0 million during Nine Months 2024, from $380.3 million as of December 31, 2023 to a net unrealized loss of $170.3 million as of September 30, 2024, primarily due to a decrease in Treasury yields.
Current wording
We had total investments of $9.04 billion and $8.54 billion as of March 31, 2025 and December 31, 2024, respectively. Net unrealized losses on our fixed maturity securities portfolio decreased $95.0 million during First Quarter 2025, from a $349.7 million unrealized loss at December 31, 2024 to a $254.7 million unrealized loss as of March 31, 2025, primarily due to a decrease in interest rates.
Previous wording
We consolidated our main reinsurance purchases into a single placement date of April 2024. Coverage was placed with more than 40 reinsurers that are all rated A- or better by A.M. Best. 2024 reinsurance premiums for the total program are estimated to be $191.4 million pre-tax, as of September 30, 2024, compared to $207.2 million pre-tax for 2023, reflecting impacts from changing the timing of program placement in this initial year of transition to a single placement date, as well as favorable underlying rates from improved reinsurance market conditions. Actual reinsurance premiums will vary if exposure changes significantly from estimates or if reinstatement premiums are required due to catastrophe events.
Current wording
Effective April 2025, coverage was placed with various reinsurers that are all rated A- or better by A.M. Best. 2025 reinsurance premiums for the total program are estimated to be $222.7 million pre-tax, compared to $188.9 million pre-tax for 2024, reflecting exposure changes, expected Florida Hurricane Catastrophe Fund (“FHCF”) program, impacts from changing the timing of program placement to a single placement date (with a premium benefit in 2024), and favorable underlying rates from improved reinsurance market conditions. Actual reinsurance premiums will vary if exposure changes significantly from estimates or if reinstatement premiums are required due to catastrophe events.
Previous wording
The U.S. per-occurrence catastrophe coverage includes a main reinsurance program providing $1.48 billion of coverage in excess of a $150.0 million retention for a first event. Layers 1 through 7 of the program allow for one automatic reinstatement. When combined with the Florida Hurricane Catastrophe Fund, the U.S. program protects against gross Florida losses of up to approximately $1.69 billion, in excess of retention.
Current wording
The U.S. per-occurrence catastrophe coverage includes a main reinsurance program providing $1.76 billion of coverage in excess of a $160.0 million retention. Layers 1 through 6 of the program allow for one automatic reinstatement. When combined with the FHCF, the U.S. program protects against gross Florida losses of up to approximately $2.04 billion, in excess of retention.
Previous wording
Management believes that we will have sufficient liquidity to satisfy our needs over the next twelve months, including the ability to pay interest on our debt and dividends on our common stock.
Current wording
The following section discusses our ability to generate cash flows from each of our subsidiaries, borrow funds at competitive rates and raise new capital to meet our operating and growth needs. Management believes that we will have sufficient liquidity to satisfy our needs over the next twelve months, including the ability to pay interest on our debt and dividends on our common stock.
Previous wording
We are in the process of negotiating an agreement to sell our Miami, Florida property to a potential buyer. If the transaction is consummated pursuant to the terms of the agreement, we expect to record a gain above the current carrying value of $46.0 million as of September 30, 2024. We do not anticipate that any such gain will impact our capital deployment priorities. There can be no assurance that a definitive agreement will be executed or that a transaction will be approved or consummated.
Current wording
On January 22, 2025, we entered into an agreement to sell our Miami, Florida property for a purchase price of $126.0 million, subject to the buyer receiving the requisite development approvals, which could take 18 to 24 months. If the transaction is consummated pursuant to the terms of the agreement, we expect to record a gain above the current carrying value of $46.0 million as of March 31, 2025, less estimated costs to sell. We do not anticipate that any such gain will impact our capital deployment priorities. There can be no assurance that the transaction will be consummated.
Previous wording
Assurant, Inc. is a holding company and, as such, has limited direct operations of its own. Our assets consist primarily of the capital stock of our subsidiaries. Accordingly, our future cash flows depend upon the availability of dividends and other statutorily permissible payments from our subsidiaries, such as payments under our tax allocation agreement and under management agreements with our subsidiaries. Our subsidiaries’ ability to pay such dividends and make such other payments is regulated by the states and territories in which our subsidiaries are domiciled. These dividend regulations vary from jurisdiction to jurisdiction and by type of insurance provided by the applicable subsidiary, but generally require our insurance subsidiaries to maintain minimum solvency requirements and limit the amount of dividends these subsidiaries can pay to the holding company. See “Item 1—Business—Regulation—U.S. Insurance Regulation” and “Item 1A—Risk Factors—Legal and Regulatory Risks—Changes in insurance regulation may reduce our profitability and limit our growth” in our 2023 Annual Report. Along with solvency regulations, the primary driver in determining the amount of capital used for dividends from insurance subsidiaries is the level of capital needed to maintain desired financial strength ratings from A.M. Best Company (“A.M. Best”). For the year ending December 31, 2024, the maximum amount of dividends our regulated U.S. domiciled insurance subsidiaries could pay us, under applicable laws and regulations currently in effect and without prior regulatory approval, is approximately $592.4 million. In addition, our international and non-insurance subsidiaries provide additional sources of dividends.
Current wording
Assurant, Inc. is a holding company and, as such, has limited direct operations of its own. Our assets consist primarily of the capital stock of our subsidiaries. Accordingly, our future cash flows depend upon the availability of dividends and other statutorily permissible payments from our subsidiaries, such as payments under our tax allocation agreement and under management agreements with our subsidiaries. Our subsidiaries’ ability to pay such dividends and make such other payments is regulated by the states and territories in which our subsidiaries are domiciled. These dividend regulations vary from jurisdiction to jurisdiction and by type of insurance provided by the applicable subsidiary, but generally require our insurance subsidiaries to maintain minimum solvency requirements and limit the amount of dividends they can pay to the holding company. See “Item 1—Business—Regulation—U.S. Insurance Regulation” and “Item 1A—Risk Factors—Legal and Regulatory Risks—Changes in insurance regulation may reduce our profitability and limit our growth” in our 2024 Annual Report. Along with solvency regulations, the primary driver in determining the amount of capital used for dividends from insurance subsidiaries is the level of capital needed to maintain desired financial strength ratings from A.M. Best Company (“A.M. Best”). For the year ending December 31, 2025, the maximum amount of dividends our regulated U.S. domiciled insurance subsidiaries could pay us, under applicable laws and regulations without prior regulatory approval, is approximately $524.2 million. Our international and non-insurance subsidiaries provide additional sources of dividends.
Previous wording
As of September 30, 2024, we had approximately $636.2 million in holding company liquidity, which was $411.2 million above our targeted minimum level of $225.0 million. The target minimum level of holding company liquidity, which can be used for unforeseen capital needs at our subsidiaries or liquidity needs at the holding company, is calibrated based on approximately one year of corporate operating losses and interest expenses. We use the term “holding company liquidity” to represent the portion of cash and other liquid marketable securities held at Assurant, Inc. (out of a total of $723.6 million as of September 30, 2024) which we are not otherwise holding for a specific purpose as of the balance sheet date. We can use such assets for stockholder dividends, stock repurchases, acquisitions and other corporate purposes.
Current wording
As of March 31, 2025, we had approximately $501.2 million in holding company liquidity, $276.2 million above our targeted minimum level of $225.0 million. The target minimum level of holding company liquidity, which can be used for unforeseen capital needs at our subsidiaries or liquidity needs at the holding company, is calibrated based on approximately one year of pre-tax corporate operating losses and interest expenses. We use the term “holding company liquidity” to represent the portion of cash and other liquid marketable securities held at Assurant, Inc. (out of a total of $601.4 million as of March 31, 2025) which we are not otherwise holding for a specific purpose as of the balance sheet date. We can use such assets for stock repurchases, stockholder dividends, acquisitions and other corporate purposes.
Previous wording
Dividends or returns of capital paid by our subsidiaries to the holding company, net of infusions of liquid assets and excluding amounts used for or as a result of acquisitions or received from dispositions, were $556.4 million and $772.6 million for Nine Months 2024 and Twelve Months 2023, respectively. We use these cash inflows primarily to pay holding company operating expenses, to make interest payments on indebtedness, to make dividend payments to our common stockholders, to repurchase our common stock and to fund investments and acquisitions. From time to time, we may also seek to purchase outstanding debt in open market repurchases or privately negotiated transactions.
Current wording
Dividends or returns of capital paid by our subsidiaries, net of infusions of liquid assets and excluding amounts used for or as a result of acquisitions or received from dispositions, were $66.6 million and $804.7 million for First Quarter 2025 and Twelve Months 2024, respectively. We use these cash inflows primarily to pay holding company operating expenses, to make interest payments on indebtedness, to make dividend payments to our common stockholders, to fund investments and acquisitions, and to repurchase our common stock. From time to time, we may also seek to purchase outstanding debt in open market repurchases or privately negotiated transactions.
Previous wording
During Nine Months 2024, we made common stock repurchases and paid common stock dividends of $294.8 million. We paid dividends of $0.72 per common share on September 30, 2024 to stockholders of record as of September 3, 2024. Any determination to pay future dividends will be at the discretion of the Board of Directors (the “Board”) and will be dependent upon various factors, including: our subsidiaries’ payments of dividends and other statutorily permissible payments to us; our results of operations and cash flows; our financial condition and capital requirements; general business conditions and growth prospects; any legal, tax, regulatory and contractual restrictions on the payment of dividends; and any other factors the Board deems relevant. The Credit Facility (as defined below) also contains limitations on our ability to pay dividends to our stockholders and repurchase capital stock if we are in default, or such dividend payments or repurchases would cause us to be in default, of our obligations thereunder. In addition, if we elect to defer the payment of interest on our 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 or our 5.25% Subordinated Notes due January 2061 (refer to “—Senior and Subordinated Notes” below), we generally may not make payments on or repurchase any shares of our capital stock.
Current wording
During First Quarter 2025, we made common stock repurchases and paid dividends to our common stockholders of $103.4 million. We paid dividends of $0.80 per common share on March 31, 2025 to stockholders of record as of February 3, 2025. Any determination to pay future dividends will be at the discretion of the Board of Directors (the “Board”) and will be dependent upon various factors, including: our subsidiaries’ payments of dividends and other statutorily permissible payments to us; our results of operations and cash flows; our financial condition and capital requirements; general business conditions and growth prospects; any legal, tax, regulatory and contractual restrictions on the payment of dividends; and any other factors the Board deems relevant. The Credit Facility (as defined below) also contains limitations on our ability to pay dividends to our stockholders and repurchase capital stock if we are in default, or such dividend payments or repurchases would cause us to be in default, of our obligations thereunder. In addition, if we elect to defer the payment of interest on our 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 or our 5.25% Subordinated Notes due January 2061 (refer to “—Senior and Subordinated Notes” below), we generally may not make payments on or repurchase any shares of our capital stock.
Previous wording
During Nine Months 2024, we repurchased 990,010 shares of our outstanding common stock at a cost of $180.0 million, exclusive of commissions. In November 2023, the Board authorized an additional share repurchase program for up to $600.0 million of our outstanding common stock. As of September 30, 2024, $494.5 million aggregate cost at purchase remained unused under the repurchase authorization. The timing and the amount of future repurchases will depend on various factors, including those listed above.
Current wording
During First Quarter 2025, we repurchased 298,946 shares of our outstanding common stock at a cost of $62.5 million, exclusive of commissions. In November 2023, the Board authorized an additional share repurchase program for up to $600.0 million of our outstanding common stock. As of March 31, 2025, $312.1 million aggregate cost at purchase remained unused under the repurchase authorization. The timing and the amount of future repurchases will depend on various factors, including those listed above.
Previous wording
Generally, our subsidiaries’ premiums, fees and investment income, along with planned asset sales and maturities, provide sufficient cash to pay claims and expenses. However, there may be instances when unexpected cash needs arise in excess of what is available from usual operating sources. In such instances, we have several options to raise needed funds, including selling assets from the subsidiaries’ investment portfolios, using holding company cash (if available), issuing commercial paper, or drawing funds from the Credit Facility.
Current wording
Generally, our subsidiaries’ premiums, fees and investment income, along with planned asset sales and maturities, provide sufficient cash to pay claims and expenses. However, there may be instances when unexpected cash needs arise in excess of that available from usual operating sources. In such instances, we have several options to raise needed funds, including selling assets from the subsidiaries’ investment portfolios, using holding company cash (if available), issuing commercial paper, or drawing funds from the Credit Facility.
Showing the first 40 of 50 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
December 2026, provided we are in compliance with all covenants. The Credit Facility has a sublimit for letters of credit issued thereunder of $50.0 million. The proceeds from these loans may be used for our commercial paper program or for general corporate purposes.