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.
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