Assurant, Inc. Earnings
Assurant, Inc. (NYSE: AIZ), a prominent global protection enterprise, recently disclosed its financial outcomes for the fourth quarter and the entirety of the fiscal year concluded on December 31, 2024. Despite challenging market conditions, Assurant showcased an impressive financial performance, further solidifying its position in the protection services industry. Below is a snapshot of the key financial metrics that define the company's robust quarterly and annual achievements:
| Metric | Q4 2024 | Q4 2023 | YoY Change (%) |
|---|---|---|---|
| GAAP Net Income ($ million) | 201.3 | 182.5 | 10 |
| GAAP Net Income per Diluted Share ($) | 3.87 | 3.42 | 13 |
| Adjusted EBITDA ($ million) | 381.4 | 360.8 | 6 |
| Adjusted Earnings per Diluted Share ($) | 5.54 | 4.90 | 13 |
| Net Earned Premiums, Fees, and Other Income | 2.99 billion | 2.85 billion | 5 |
The company's remarkable growth in GAAP net income and earnings per share is attributed to the strong performance of the Global Housing segment, complemented by a strategic share repurchase program. Adjusted EBITDA also saw an uplift, even in the face of heightened reportable catastrophes.
Assurant, Inc. Results
In the fourth quarter of 2024, Assurant delivered exceptional financial performance, marked by both resilience and strategic growth. Total revenue for the quarter reached $2.99 billion, reflecting a 5% year-over-year increase driven by net earned premiums, fees, and other pertinent income. GAAP net income showcased a significant 10% rise, reaching $201.3 million, which translates to $3.87 per diluted share, representing a 13% increase. Adjusted earnings per diluted share also climbed by 13%, standing at $5.54.
Upon closer inspection, the Global Housing unit emerged as a star performer with a notable year-over-year increase of 21%, propelled by strong gains in the Homeowners portfolio. On the contrary, the Global Lifestyle segment experienced a downturn due to diminished real estate joint venture income.
Revenue Breakdown
The performance of Assurant's various segments demonstrates a diverse and strategic approach to generating revenue. The Global Housing segment was particularly pivotal, showing a robust 21% growth. This segment benefited from a surge in the Homeowners line and a reduction in non-catastrophe losses, which attested to Assurant’s astute risk management and operational proficiency.
| Segment | Q4 2024 | YoY Change (%) |
|---|---|---|
| Global Lifestyle | -6% | - |
| Global Housing | +21% | - |
| Corporate & Other | Decrease | - |
Conversely, the Global Lifestyle segment lagged, grappling with a 6% decline due to weakened income from real estate joint ventures associated with Global Automotive operations. The Corporate & Other segments also faced challenges, depicted by a further decline.
Key Developments
During the quarter, Assurant retained liquidity of $673 million at the holding company, far exceeding the base target of $225 million. This liquidity position affords Assurant the flexibility to pursue growth initiatives and address potential uncertainties.
A substantive portion of capital was allocated to shareholder returns, with $456 million distributed in share repurchases and common stock dividends over the course of the year. Consequently, a healthy $351 million remains under the authorized share repurchase program, signaling future opportunities for capital return to shareholders.
Comments from Company Officers
Keith Demmings, CEO of Assurant, emphasized the efficacy of the company’s business model, highlighting standout performances from the Global Housing segment and burgeoning connected living divisions. He voiced optimism for 2025, underscoring the strategic focus on new growth partnerships and continued product innovation in a dynamic market landscape.
Dividends and Share Repurchases
In fiscal 2024, Assurant repurchased a total of 1.5 million shares amounting to $300 million while disbursing $156 million in common stock dividends. In the fourth quarter alone, the firm repurchased 559,000 shares while disbursing $41 million in dividends, affirming Assurant’s commitment to delivering shareholder value.
Assurant, Inc. Stock Forecast
Based on the financial performance and strategic initiatives from this quarter, Assurant's stock is poised for appreciable volatilities. With an observed after-event percentage change of 0.127% in trading sessions, and a current stock price of $212.8, Assurant can anticipate a stock price range between $202 and $225 in the near-to-medium term. This forecast integrates projected modest growth in adjusted EBITDA, strategic focus on sustained financial stewardship, and effective capital deployment strategies.
Assurant, Inc remains steadfast in fortifying its financial foundation through innovative growth strategies, disciplined execution, and delivering valuable shareholder returns. This earnings report marks a promising trajectory as Assurant marches forward into 2025.
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