Assurant Files Q2 2024 10-Q with Financial Details

TL;DR

Assurant's Q2 10-Q is in! Shows financial details for H1 2024 vs H1 2023.

AI Summary

Assurant, Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers financial activities from January 1, 2024, to June 30, 2024, and includes comparative data for the same period in 2023. Key financial statement items such as common stock, senior subordinated notes, and retained earnings are detailed for various reporting dates within these periods.

Why It Matters

This filing provides investors and analysts with the latest financial performance and position of Assurant, Inc., crucial for understanding the company's health and making investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags or significant new risks indicated.

Key Numbers

• 20240630 — Period End Date (Financial reporting period)
• 2023-12-31 — Prior Year End Date (Comparative financial data)
• 2024-01-01 — Current Year Start Date (Financial reporting period)

Key Players & Entities

• ASSURANT, INC. (company) — Filer
• 20240630 (date) — Period of Report
• 20240808 (date) — Filed as of Date
• 0001267238 (company) — Central Index Key

FAQ

Key Financial Figures

• $0.01 — ange on Which Registered Common Stock, $0.01 Par Value AIZ New York Stock Exchange

Filing Documents

• aiz-20240630.htm (10-Q) — 2132KB
• aiz-20240630ex31110q.htm (EX-31.1) — 8KB
• aiz-20240630ex31210q.htm (EX-31.2) — 8KB
• aiz-20240630ex32110q.htm (EX-32.1) — 5KB
• aiz-20240630ex32210q.htm (EX-32.2) — 5KB
• 0001267238-24-000037.txt ( ) — 11608KB
• aiz-20240630.xsd (EX-101.SCH) — 54KB
• aiz-20240630_cal.xml (EX-101.CAL) — 126KB
• aiz-20240630_def.xml (EX-101.DEF) — 305KB
• aiz-20240630_lab.xml (EX-101.LAB) — 754KB
• aiz-20240630_pre.xml (EX-101.PRE) — 531KB
• aiz-20240630_htm.xml (XML) — 2525KB

Notes to Consolidated Financial Statements (unaudited) 9

Notes to Consolidated Financial Statements (unaudited) 9 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 32 3. Quantitative and Qualitative Disclosures About Market Risk 46 4. Controls and Procedures 46 PART II OTHER INFORMATION 1. Legal Proceedings 48 1A. Risk Factors 48 2. Unregistered Sales of Equity Securities and Use of Proceeds 48 5. Other Information 48 6. Exhibits 49 Signatures 50 1 Assurant, Inc. Consolidated Balance Sheets (unaudited) June 30, 2024 December 31, 2023 (in millions, except number of shares and per share amounts) Assets Investments: Fixed maturity securities available for sale, at fair value (amortized cost - $ 7,644.1 and $ 7,292.4 at June 30, 2024 and December 31, 2023, respectively) $ 7,208.5 $ 6,912.1 Equity securities at fair value 226.3 223.0 Commercial mortgage loans on real estate, at amortized cost (net of allowances for credit losses of $ 6.2 and $ 4.0 at June 30, 2024 and December 31, 2023, respectively) 330.2 328.7 Short-term investments 254.0 258.1 Other investments 505.9 499.0 Total investments 8,524.9 8,220.9 Cash and cash equivalents 1,713.1 1,627.4 Premiums and accounts receivable (net of allowances for credit losses of $ 6.7 and $ 9.0 at June 30, 2024 and December 31, 2023, respectively) 1,814.8 2,265.6 Reinsurance recoverables (net of allowances for credit losses of $ 4.6 and $ 4.8 at June 30, 2024 and December 31, 2023, respectively) 6,727.9 6,649.2 Accrued investment income 119.9 97.0 Deferred acquisition costs 10,041.0 9,967.2 Property and equipment, net 732.6 685.8 Goodwill 2,618.4 2,608.8 Value of business acquired 20.8 83.9 Other intangible assets, net 555.1 567.1 Other assets (net of allowances for credit losses of $ 0.7 at June 30, 2024 and December 31, 2023) 904.5 862.3 Total assets $ 33,773.0 $ 33,635.2 Liabilities Future policy benefits and expenses $ 511.5 $ 487.2 Unearned premiums 20,245.3 20,110.4 Claims and bene

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) (in millions, except number of shares and per share amounts) INDEX OF NOTES Note Page Number 1. Nature of Operations 9 2. Basis of Presentation 9 3. Recent Accounting Pronouncements 10 4. Segment Information 12 5. Contract Revenues 14 6. Investments 15 7. Fair Value Disclosures 19 8. Deferred Acquisition Costs 22 9. Reserves 23 10. Accumulated Other Comprehensive Income 26 11. Earnings Per Common Share 28 12. Retirement and Other Employee Benefits 29 13. Restructuring and Related Impairment Charges 30 14. Commitments and Contingencies 31 1. Nature of Operations Assurant, Inc. (the "Company") is a leading global business services company that supports, protects and connects major consumer purchases. The Company 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. The Company operates in North America, Latin America, Europe and Asia Pacific through two operating segments: Global Lifestyle and Global Housing. Through its Global Lifestyle segment, the Company provides mobile device solutions, 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"). Through its Global Housing segment, the Company provides lender-placed homeowners, manufactured housing and flood insurance, as well as voluntary manufactured housing, condominium and homeowners insurance (referred to as "Homeowners"); and renters insurance and other products (referred to as "Renters and Other"). The Company's common stock is traded on the New York Stock Exchange under the symbol "AIZ". 2. Basis of Presentation The accompanying unaudited interim cons

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) (in millions, except number of shares and per share amounts) 3. Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASUs") to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. Adopted There were no ASUs adopted by the Company during the quarterly period ended June 30, 2024. Not Yet Adopted ASUs issued but not yet adopted as of June 30, 2024, that are currently being assessed and may or may not have a material impact on the Company's consolidated financial statements or disclosures are included below. ASUs not listed below were assessed and either determined to be not applicable or are not expected to have a material impact on the Company's consolidated financial statements or disclosures. 10 Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) (in millions, except number of shares and per share amounts) Standard Summary of the Standard Effective date Method of Adoption Impact of the Standard on the Company's Financial Statements ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The guidance improves reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. Key disclosure updates include: On an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss. On an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the significant expenses disclosed and each reported measure of segment profit or loss. All current annual disclosures about a reportable segment's profit or loss and assets currently required by Topic 280, Segment Reporting on an interim basis. Clarify that if the CODM uses more than one measure of a segment's profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit. However, at least one of the reported segment's profit or loss measures (or the single reported measure, if only one is disclosed) should be the measure that is most consistent with the measurement principles used in measuring the corresponding amounts in the public entity's consolidated financial statements. Require the disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. Require that a public entity that has a single rep

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) (in millions, except number of shares and per share amounts) Standard Summary of the Standard Effective date Method of Adoption Impact of the Standard on the Company's Financial Statements ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures The guidance improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. January 1, 2025 (with early adoption permitted) The Company is assessing the adoption of this standard as of January 1, 2025. The amended guidance is expected to have no impact on the Company's consolidated financial statements and insignificant impact on the Company's income tax disclosures. 4. Segment Information As of June 30, 2024, the Company had two reportable operating segments, Global Lifestyle and Global Housing. In addition, the Company reports the Corporate and Other segment, which includes corporate employee-related expenses and activities of the holding company. The Company defines Adjusted EBITDA, the segment measure of profitability, as net income, excluding net realized gains (losses) on investments and fair value changes to equity securities, non-core operations (defined below), 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. 12 Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) (in millions, except number of shares and per share amounts) The following table presents segment Adjusted EBITDA with a reconciliation to net income: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Adjusted EBITDA by segment: Global Lifestyle $ 189.7 $ 197.0 $ 397.4 $ 395.9 Global Housing 160.9 154.6 353.4 223.0 Corporate and Other ( 27.2 ) ( 28.5 ) ( 56.7 ) ( 52.9 ) Reconciling items to consolidated net income: Interest expense ( 26.7 ) ( 27.2 ) ( 53.5 ) ( 54.2 ) Depreciation expense ( 30.0 ) ( 25.4 ) ( 60.6 ) ( 51.8 ) Amortization of purchased intangible assets ( 17.3 ) ( 18.7 ) ( 34.9 ) ( 37.4 ) Net realized losses on investments and fair value changes to equity securities ( 19.6 ) ( 20.0 ) ( 28.4 ) ( 30.6 ) Non-core operations (1) ( 3.7 ) ( 30.2 ) ( 6.3 ) ( 42.4 ) Restructuring costs ( 1.2 ) 1.3 ( 1.2 ) ( 5.1 ) Assurant Health runoff operations (2) — — 0.4 7.5 Other adjustments 8.0 1.4 16.2 ( 0.6 ) Total reconciling items ( 90.5 ) ( 118.8 ) ( 168.3 ) ( 214.6 ) Income before income tax expense 232.9 204.3 525.8 351.4 Income tax expense 44.2 48.0 100.7 81.5 Net income $ 188.7 $ 156.3 $ 425.1 $ 269.9 (1) Consists of certain businesses which the Company has fully exited or expects to fully exit, including the long-tail commercial liability businesses (sharing economy and small commercial businesses), certain legacy long-duration insurance policies and the Company's operations in mainland China (not Hong Kong) (collectively referred to as "non-core operations"). The non-core operations do not qualify as held for sale or discontinued operations under GAAP accounting guidance and are presented as a reconciling item to consolidated net income. (2) In first quarter 2023, the Company recorded income of $ 7.5 million related to a payment it received from Time Insurance Company ("TIC") pursuant to a participation agreement that the Company had with TIC in connection

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) (in millions, except number of shares and per share amounts) The following table presents total assets by segment: June 30, 2024 December 31, 2023 Global Lifestyle (1) $ 27,233.0 $ 27,642.9 Global Housing (1) 4,440.4 4,274.5 Corporate and Other (2) 2,099.6 1,717.8 Segment assets $ 33,773.0 $ 33,635.2 (1) Segment assets for Global Lifestyle and Global Housing do not include net unrealized gains (losses) on securities attributable to those segments, which are all included within Corporate and Other. (2) Corporate and Other includes the Miami, Florida property with a carrying value of $ 46.0 million as of June 30, 2024 and December 31, 2023, which met held-for-sale criteria and was included in other assets. The Company has ceased depreciation of these assets which are recorded at carrying value, which is less than the estimated fair value less estimated costs to sell. During third quarter 2023, the Company submitted an agreement to a potential acquiror, who subsequently withdrew in second quarter 2024. The Company intends to sell the property and, based on current market conditions and interest from multiple potential bidders, the Company has determined that the assets continue to meet held-for-sale criteria. There can be no assurance that a transaction will be entered into or consummated. 5. Contract Revenues The Company partners with clients to provide consumers with a diverse range of protection products and services. The Company's revenues from protection products are accounted for as insurance contracts and are recognized over the term of the insurance protection provided. Revenues from services and sales of products are recognized as the contractual performance obligations are satisfied or the products are delivered. Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for performing the services or transferring products. If payments are received

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View this 10-Q filing on SEC EDGAR