Assurant Q4’22 earnings call

Assurant hosted its Q4 2022 earnings call on Feb 8, 2023. The highlights:

• In Global Housing – exited certain noncore businesses, such as sharing economy and international cat-exposed businesses
• Expects to realize $55 million of annualized gross savings by the end of 2024 through the simplification of its organizational structure, and its real estate consolidation program given its increasingly hybrid workforce
• Key partner renewals include T-Mobile and XFINITY
• In mobile protection business – it now protects around 62 million global devices, driven by the 25 new protection programs it has added since 2015
• It serviced over 28 million devices in 2022, mainly from its mobile trade-in business
• Added several new trading clients and now Assurant has over 40 trade-in programs globally
• In its newly combined Leased and Financed business – partnered with CNH Industrial (the third largest agriculture and construction equipment company in the world) in the US and Canada to provide service contracts and physical damage insurance
• In Global Housing – expects higher rates to roll through its book into 2023 and beyond, while it manages ongoing elevated claims costs
• In Multifamily Housing – Assurant has over 2.6 million renters policies
• Multifamily Housing – “While we’ve seen slower growth from our affinity partnerships, our volume with property management companies continues to expand as we signed several new partnerships, including 2 top PMCs with over 100,000 combined units. We also successfully completed multiyear renewals with 6 key client relationships.” – CEO Keith Demmings.
• Continuing to convert clients to Cover360 platform
• M&A – “Our M&A strategy will continue to focus on compelling deals in Global Lifestyle. However, the hurdle rate for M&A will be high given the attractiveness of our stock.” – Keith Demmings.