Company expected to deliver significant
earnings growth and continued strong cash generation through
2024
Assurant, Inc. (NYSE: AIZ), a leading global business services
company that supports, protects and connects major consumer
purchases, today will host its virtual Investor Day where it will
share its company vision and provide its financial outlook for 2022
and financial objectives for 2023-2024.
“Our long track record of outperformance gives us confidence in
our ability to deliver on our stated financial objectives over the
next three years,” said Keith Demmings, President and CEO,
Assurant. “Our global business is well-positioned to achieve our
vision to become the leading business services company supporting
the advancement of the connected world.”
Assurant expects to deliver sustained 8-10 percent growth in
adjusted EBITDA, excluding reportable catastrophes(1,2), and nearly
$3 billion in segment cash generation(2,3) over the next three
years. In addition to adjusted EBITDA, the company will also now
include adjusted earnings per diluted share as a key performance
metric for the company.
2022 Outlook
2023-2024 Financial
Objectives
Adjusted EBITDA, excluding reportable
catastrophes(1,2)
8 percent to 10 percent
growth
10 percent average annual
growth
Adjusted earnings, excluding reportable
catastrophes, per diluted share(1,2)
16 percent to 20 percent
growth
12 percent or higher average
annual growth
Segment cash generation
~$2.9 billion(2,3)
Demmings will be joined by four senior executives to highlight
how the company’s market leadership and competitive advantages,
along with favorable market and consumer trends, position Assurant
to meet evolving needs and to thrive in a connected world.
Management will showcase the company’s progress since its last
Investor Day in 2019, including successfully delivering against its
enterprise financial objectives while outperforming the S&P
500(4). Presenters include:
- Keith Demmings, President & Chief Executive Officer
- Richard Dziadzio, EVP, Chief Financial Officer
- Bob Lonergan, EVP, Chief Strategy & Risk Officer
- Biju Nair, EVP, President of Global Connected Living
- Suzanne Shepherd, SVP, Investor Relations and
Sustainability
“As Assurant continues to evolve into a more fee-based,
capital-light and service-oriented enterprise, sustained earnings
growth and cash flow generation are expected to continue to provide
us with the flexibility to target strategic investments to drive
long-term growth while at the same time returning capital to
shareholders and maintaining our investment grade and financial
strength ratings,” said Demmings. “We have a proven track record of
making high-return, strategic investments in our businesses, backed
by a long history of returning capital to our shareholders, which
we believe in combination will maximize value creation going
forward.”
In the eighteen years since going public, Assurant has raised
its common stock dividend every year and repurchased 66 percent of
its common stock.
Given its ongoing shift to more fee-based businesses, beginning
in first quarter 2022, Assurant will introduce adjusted earnings,
excluding reportable catastrophes, per diluted share, in addition
to adjusted EBITDA, excluding reportable catastrophes, as its
performance metric for the enterprise. In addition, the company
introduced a new metric within its Connected Living business,
global mobile devices serviced, which includes the number of
devices for which it provides value to its consumers and partners
through trade-in, repair and broader dynamic fulfillment services.
To provide investors with an opportunity to review the updated
presentation prior to the publication of Assurant’s first quarter
2022 results, the financial supplement as of December 31, 2021 has
been revised to reflect these and other changes. The revised
financial supplement is available on Assurant’s Investor Relations
website: https://ir.assurant.com/investor/default.aspx.
(1) Reportable catastrophes represent
individual catastrophic events that generate losses in excess of
$5.0 million, pre-tax, net of reinsurance and client profit sharing
adjustments and including reinstatement and other premiums.
(2) The company outlook and financial
objectives for adjusted EBITDA, excluding reportable catastrophes,
adjusted earnings, excluding reportable catastrophes, per diluted
share, and segment cash generation each constitute forward-looking
information and the company believes that it cannot reconcile such
forward-looking information to the most comparable GAAP measure
without unreasonable efforts. Many of the GAAP components cannot be
reliably quantified due to the combination of variability and
volatility of such components and may, depending on the size of the
components, have a significant impact on the reconciliation. For
2022, the company is able to quantify a full-year estimate of
interest expense, depreciation expense and amortization of
purchased intangible assets, each on a pre-tax basis, which are
expected to be approximately $109 million, $85 million and $70
million, respectively. The interest expense estimate assumes no
additional debt is incurred or extinguished in the forecast period
and excludes after-tax interest expenses included in debt
extinguishment and other related costs.
(3) 2022-2024 segment cash generation to
approximate 75% of segment adjusted EBITDA, including a $120M
annual catastrophe load, which represents average actual losses
over the last three years.
(4) Assurant’s total shareholder return
was 107% compared to 80% for the S&P 500 from 12/31/2018
through 3/15/2022. Total shareholder return assumes dividends are
reinvested. Data sourced from Factset.
Investor Day Webcast
A live webcast of the event will be held on March 24, 2022 at
9:00 a.m. E.T. A live Q&A session with management will be
available for the investment community via the webcast platform as
well as phone dial-in. The live and archived replay of the
presentation will be available through the Investor Relations
section of Assurant's website at www.assurant.com. Slides of the
presentation will be posted for viewing before the event
begins.
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, 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, including performance outlook, financial
objectives, business drivers, our ability to gain market share, and
the strength, diversity, predictability and resiliency of
enterprise and segment earnings, cash flows and other results, 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 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 and financial
objectives:
(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
those parties face financial, reputational or regulatory
issues;
(ii)
significant competitive pressures, changes
in customer preferences and disruption;
(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;
(iv)
the failure to find suitable acquisitions
at attractive prices, integrate acquired businesses effectively or
identify new areas for organic growth;
(v)
our inability to recover should we
experience a business continuity event;
(vi)
the failure to manage vendors and other
third parties on whom we rely to conduct business and provide
services to our clients;
(vii)
risks related to our international
operations;
(viii)
declines in the value of mobile devices,
or export compliance or other risks in our mobile business;
(ix)
our inability to develop and maintain
distribution sources or attract and retain sales representatives
and executives with key client relationships;
(x)
risks associated with joint ventures,
franchises and investments in which we share ownership and
management with third parties;
(xi)
the impact of catastrophe and
non-catastrophe losses, including as a result of climate
change;
(xii)
negative publicity relating to our
business or industry;
(xiii)
the impact of general economic, financial
market and political conditions and conditions in the markets in
which we operate;
(xiv)
the impact of the COVID-19 pandemic and
measures taken in response thereto;
(xv)
the adequacy of reserves established for
claims and our inability to accurately predict and price for
claims;
(xvi)
a decline in financial strength ratings of
our insurance subsidiaries or in our corporate senior debt
ratings;
(xvii)
fluctuations in exchange rates;
(xviii)
an impairment of goodwill or other
intangible assets;
(xix)
the failure to maintain effective internal
control over financial reporting;
(xx)
unfavorable conditions in the capital and
credit markets;
(xxi)
a decrease in the value of our investment
portfolio, including due to market, credit and liquidity risks, and
changes in interest rates;
(xxii)
an impairment in the value of our deferred
tax assets;
(xxiii)
the unavailability or inadequacy of
reinsurance coverage and the credit risk of reinsurers, including
those to whom we have sold business through reinsurance;
(xxiv)
the credit risk of some of our agents,
third-party administrators and clients;
(xxv)
the inability of our subsidiaries to pay
sufficient dividends to the holding company and limitations on our
ability to declare and pay dividends or repurchase shares;
(xxvi)
limitations in the analytical models we
use to assist in our decision-making;
(xxvii)
the failure to effectively maintain and
modernize our information technology systems and infrastructure, or
the failure to integrate those of acquired businesses;
(xxviii)
breaches of our information systems or
those of third parties with whom we do business, or the failure to
protect the security of data in such systems, including due to
cyber attacks and as a result of working remotely;
(xxix)
the costs of complying with, or the
failure to comply with, extensive laws and regulations to which we
are subject, including those related to privacy, data security,
data protection or tax;
(xxx)
the impact of litigation and regulatory
actions;
(xxxi)
reductions or deferrals in the insurance
premiums we charge;
(xxxii)
changes in insurance, tax and other
regulations;
(xxxiii)
volatility in our common stock price and
trading volume; and
(xxxiv)
employee misconduct.
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 but not limited to 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220324005032/en/
Media: Linda Recupero Senior Vice President, Global
Enterprise Communications 201.519.9773
linda.recupero@assurant.com
Stacie Sherer Vice President, Corporate Communications
917.420.0980 stacie.sherer@assurant.com
Investor Relations: Suzanne Shepherd Senior Vice
President, Investor Relations and Sustainability 201.788.4324
suzanne.shepherd@assurant.com
Sean Moshier Assistant Vice President, Investor Relations
914.204.2253 sean.moshier@assurant.com
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