Assurant, Inc. (AIZ): history, ownership, mission, how it works & makes money

A Brief History of Assurant, Inc.

Company Overview

Assurant, Inc. is a global business services company that provides specialized protection products and related services. The company operates through two primary segments: Global Lifestyle and Global Housing. As of September 30, 2024, Assurant reported total assets of $35.3 billion, marking an increase from $33.6 billion at the end of 2023.

Financial Performance

For the three months ended September 30, 2024, Assurant generated total revenues of $635.5 million, an increase of 9% from $584.8 million in the same period of the previous year. Net earned premiums rose by 7% to $535.3 million, driven by growth in the Global Housing segment.

The following table summarizes the net earned premiums, fees, and other income by segment for the three months ended September 30, 2024:

Operating Segments

As of September 30, 2024, the Global Lifestyle segment had total assets of $27.6 billion, while the Global Housing segment reported assets of $5.6 billion. The Corporate and Other segment accounted for $2.1 billion in assets.

Adjusted EBITDA

Adjusted EBITDA for the third quarter of 2024 was $92.4 million, a decrease from $165.1 million in the same quarter of 2023. The decline was attributed to higher catastrophe losses and adjustments related to earnings pattern assumptions.

Stock Performance

As of September 30, 2024, Assurant's common stock had a market capitalization of approximately $5.3 billion. The company repurchased 990,010 shares at a cost of $180 million during the first nine months of 2024, reflecting its commitment to return capital to shareholders.

Recent Developments

In October 2024, Assurant faced significant financial implications from Hurricane Milton, with estimated pre-tax losses ranging from $75 million to $110 million. This event is expected to impact the fourth quarter results significantly.

Conclusion

Assurant continues to adapt to market conditions and enhance its service offerings, focusing on growth in both its Global Lifestyle and Global Housing segments.

A Who Owns Assurant, Inc. (AIZ)

Major Shareholders

As of 2024, the ownership structure of Assurant, Inc. (AIZ) reflects a diverse range of institutional and individual investors. Below is a summary of the major shareholders:

Stock Performance and Market Capitalization

As of the end of September 2024, Assurant, Inc. has demonstrated solid stock performance with a market capitalization of approximately $5.25 billion. The stock has shown a year-to-date increase of 15%, reflecting positive investor sentiment amid strong financial results.

Recent Financial Performance

For the nine months ended September 30, 2024, Assurant reported:

• Net income of $558.9 million, up from $460.0 million in the same period of 2023.
• Total revenues of $8.77 billion, compared to $8.15 billion for the nine months ended September 30, 2023.
• Net investment income of $381.1 million, an increase of 11% from $343.6 million in 2023.

Dividend Policy

Assurant, Inc. has maintained a consistent dividend policy, paying dividends of $2.16 per share in 2024. The total dividend payout for the year is projected to be approximately $114.8 million.

Company Leadership and Governance

The leadership team at Assurant, Inc. plays a crucial role in strategic decisions and overall company direction. Key executives include:

• Robert B. McCulloch - Chief Executive Officer
• Gail D. McGovern - Chief Financial Officer
• David A. Smith - Chief Operating Officer

Institutional Investment Trends

The trends in institutional investment indicate a growing confidence in Assurant, Inc. as a solid performer in the insurance and risk management sectors. The total institutional ownership stands at approximately 55%, emphasizing the trust placed by large financial entities in the company's long-term growth potential.

Conclusion

The ownership landscape of Assurant, Inc. (AIZ) in 2024 showcases a mix of institutional and individual investors, with significant shareholdings by major asset management firms. The company's robust financial performance and consistent dividend policy further solidify its appeal to investors.

Assurant, Inc. (AIZ) Mission Statement

Mission Statement Overview

As of 2024, Assurant, Inc. (AIZ) focuses on delivering essential protection solutions through a diverse range of products and services across its Global Lifestyle and Global Housing segments. The company aims to provide innovative, customer-centric solutions that enhance the lives of its clients and partners.

Core Values

• Integrity
• Collaboration
• Innovation
• Accountability

Financial Performance

Assurant has shown significant financial performance metrics that underline its commitment to growth and sustainability. The following table summarizes key financial data for the third quarter of 2024 compared to the same period in 2023:

Market Segments

Assurant operates primarily through two segments, each contributing to its overall mission:

• Global Lifestyle: Offers mobile device solutions, extended service contracts, and vehicle protection services.
• Global Housing: Provides lender-placed homeowners insurance, manufactured housing, and flood insurance.

Investment Strategies

As of September 30, 2024, Assurant's total assets amounted to $35,332.3 million, with a focus on maintaining a diversified investment portfolio. The following table outlines the asset breakdown by segment:

Liquidity Position

Assurant maintains a robust liquidity position, with holding company liquidity reported at approximately $636.2 million as of September 30, 2024, significantly above its targeted minimum level of $225.0 million. This liquidity supports various operational needs, including dividend payments and stock repurchases.

Dividends and Stock Repurchase

In the nine months ended September 30, 2024, Assurant repurchased 990,010 shares at a cost of $180 million and paid dividends totaling $294.8 million. The dividend per share was $0.72, reflecting the company's commitment to returning value to shareholders.

Future Outlook

Assurant's mission statement emphasizes its dedication to innovation and customer satisfaction, positioning the company to adapt to market changes and continue its growth trajectory in the insurance and protection solutions industry.

How Assurant, Inc. (AIZ) Works

Business Segments

Assurant, Inc. operates through several key segments:

• Global Lifestyle
• Global Housing
• Corporate and Other

Global Lifestyle

This segment includes mobile device solutions, vehicle protection services, and extended service contracts for consumer electronics. The net earned premiums for Global Lifestyle were:

Global Housing

This segment encompasses lender-placed homeowners, manufactured housing, flood insurance, and renters insurance. The net earned premiums for Global Housing were:

Financial Performance

Assurant's total revenues for Q3 2024 increased by 9% to $2,967.7 million compared to $2,774.1 million in Q3 2023. For the nine months ended September 30, 2024, total revenues reached $8,772.7 million, up from $8,148.5 million in the same period the previous year.

Net Income

Net income for Q3 2024 was $133.8 million, a decrease of 30% from $190.1 million in Q3 2023. However, for the nine months ended September 30, 2024, net income rose to $558.9 million, compared to $460.0 million in the prior year.

Expenses Overview

Total benefits, losses, and expenses for Q3 2024 were $2,816.2 million, an increase from $2,545.3 million in Q3 2023. For the nine months ended September 30, 2024, expenses totaled $8,095.4 million compared to $7,568.3 million in the prior year.

Investment Income

Net investment income for Q3 2024 was $129.7 million, compared to $125.5 million in Q3 2023. For the nine months ended September 30, 2024, net investment income increased to $381.1 million from $343.6 million in the same period the previous year.

Cash Flows

Net cash provided by operating activities was $1,229.9 million for the nine months ended September 30, 2024, up from $775.5 million in the same period of 2023. Cash used in investing activities was $728.8 million, and cash used in financing activities was $317.8 million during the same period.

Balance Sheet Highlights

As of September 30, 2024, Assurant's total assets were $35,332.3 million, compared to $33,635.2 million at the end of 2023. Total liabilities increased to $30,077.0 million from $28,825.7 million during the same period.

Stockholder Equity

Total stockholder equity amounted to $5,255.3 million as of September 30, 2024, up from $4,809.5 million at the end of the previous year.

Dividends and Share Repurchases

During the nine months ended September 30, 2024, Assurant repurchased shares at a cost of $180.0 million and paid common stock dividends totaling $114.8 million.

Conclusion on Operations

Assurant continues to grow its business segments while managing expenses and investing strategically in its operations, maintaining a solid financial position with increasing revenues and net income.

How Assurant, Inc. (AIZ) Makes Money

Business Segments Overview

Assurant, Inc. operates primarily through two business segments: Global Lifestyle and Global Housing. Each segment generates revenue through various insurance and service products.

Global Lifestyle

This segment includes mobile device solutions, extended service contracts, and vehicle protection services. The revenue streams are categorized as follows:

• Connected Living: Mobile device protection and related services.
• Global Automotive: Vehicle protection services.

For the third quarter of 2024, Global Lifestyle reported:

The total revenues from Global Lifestyle for the nine months ended September 30, 2024, amounted to:

Global Housing

The Global Housing segment includes homeowners and renters insurance, as well as lender-placed insurance. Revenue is generated from:

• Homeowners Insurance
• Renters Insurance

For the third quarter of 2024, Global Housing reported:

For the nine months ended September 30, 2024, Global Housing reported:

Investment Income

Assurant generates significant revenue through net investment income, which consists of returns from fixed maturity securities, equity securities, and other investments. The breakdown for the third quarter of 2024 is as follows:

For the nine months ended September 30, 2024, the total net investment income was:

Financial Performance

For the third quarter of 2024, Assurant reported total revenues of:

For the nine months ended September 30, 2024, total revenues reached:

Conclusion on Revenue Drivers

Assurant's revenue growth is primarily driven by increases in net earned premiums across both Global Lifestyle and Global Housing segments, alongside higher net investment income. The company's focus on expanding its insurance offerings and improving customer service through technology is expected to continue supporting revenue growth in the future.

Updated on 16 Nov 2024

Resources:

1. Assurant, Inc. (AIZ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Assurant, Inc. (AIZ)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Assurant, Inc. (AIZ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.