Summary of Assurant's Q2 2026 Earnings Call

1Key Financial Results and Metrics

Record Earnings: Assurant reported its second consecutive quarter of record earnings, with adjusted EBITDA growth of 18% and adjusted EPS growth of 19%, both excluding reportable catastrophes (cats).

Year-to-Date Performance: For the first half of 2026, adjusted EBITDA grew by 12% and adjusted EPS by 14%, both excluding cats.

Segment Performance:

Global Lifestyle: Adjusted EBITDA increased by 21% in Q2, driven by strong growth in Connected Living (up 24% year-to-date).

Global Automotive: Adjusted EBITDA rose 6% in Q2, supported by global partnerships and improving loss experience.

Global Housing: Adjusted EBITDA was $275 million in Q2, with an 18% increase excluding cats, benefiting from a lower loss ratio and new partnerships.

2Strategic Updates and Business Highlights

Investment in Technology: Assurant is focusing on data, automation, and AI to enhance operational efficiency and client support.

Partnership Expansion: Significant partnerships were highlighted, including a new relationship with Freedom Mortgage in the lender-placed business and ongoing collaborations with major mobile carriers and retailers.

Global Lifestyle Growth: The Connected Living segment is evolving from a protection provider to a comprehensive business partner, with a focus on mobile and technology solutions.

Market Positioning: Assurant is positioned as a trusted partner in B2B2C markets, emphasizing operational excellence and shared outcomes with clients.

3Forward Guidance and Outlook

Increased Full-Year Guidance: Assurant expects mid-single-digit growth in adjusted EBITDA and adjusted EPS for 2026, excluding cats. The company anticipates approximately 10% underlying growth when excluding the impact of prior year reserve development.

Segment Growth Projections:

Global Lifestyle: Expected to lead growth with low double-digit growth rates.

Global Automotive: Anticipated growth from higher investment income and continued loss improvements.

Global Housing: Modest growth expected, with a strong pipeline from new partnerships.

4Bad News, Challenges, or Points of Concern

Lender-Placed Business Dynamics: The placement rate was affected by a client transferring a loan portfolio to another servicer, which may impact growth in the short term.

Market Conditions: The housing insurance market is moderating, which could lead some policyholders back to traditional insurance, potentially affecting future growth.

Claims Inflation: While claims inflation is currently manageable, there are ongoing concerns about its potential impact on both auto and housing segments.

5Notable Q&A Insights

Pipeline and Future Growth: Management expressed confidence in the ongoing momentum from previous investments, with a strong pipeline for 2027. They noted that current growth is benefiting from programs launched in prior years.

Global Automotive Optimism: There is increased optimism regarding international partnerships and the potential for growth with large dealers in the U.S.

Claims Management: The company is actively managing claims costs and has mechanisms in place to mitigate inflationary pressures.

Capital Allocation: Assurant maintains a strong liquidity position, with plans to increase share repurchases towards the upper end of the $300 million to $350 million range, while also exploring M&A opportunities. Overall, Assurant demonstrated strong financial performance and strategic positioning, with a positive outlook for continued growth despite some challenges in the housing insurance market and lender-placed business dynamics.