In **Q3 2024**, the Policyholder benefits were notably higher due to several factors. The increase of **$132.2 million** (or **20.5%**) was primarily driven by **higher reportable catastrophe losses**—specifically, an extra **$110.6 million** in the Global Housing segment.  **[0001267238-24-000047_aiz-20240930.htm:36]** **[0001267238-24-000047_aiz-20240930.htm:39]**  Additionally, **elevated claims costs** in select ancillary products within the Global Automotive segment, a rise in **global mobile device protection subscribers** in the Connected Living business of the Global Lifestyle segment, and **exposure growth in homeowners** (stemming from higher lender-placed policies in-force, increased premium rates, and larger average insured values) all contributed to this significant increase.  **[0001267238-24-000047_aiz-20240930.htm:37]** **[0001267238-24-000047_aiz-20240930.htm:39]** 

Why were Policyholder benefits notably higher in Q3 2024?

The spike in underwriting and administrative expenses in Q4 2023 was driven by **higher commission expenses** amid growth in the Global Lifestyle segment—particularly in the Global Automotive business—and **increased cost of sales** stemming from the global mobile business. Additionally, **higher employee-related and IT expenses** were incurred to support growth initiatives and strategic investments in technology and talent, although these were partially offset by a mobile program contract change related to in-store mobile service and repair operations.  **[0001267238-24-000005_aiz-20231231exx991pressrel.htm:12]** **[0001267238-24-000008_aiz-20231231.htm:97]** 

What drove the spike in underwriting and administrative expenses in Q4 2023?

The sharp drop in income before tax in Q3 2024 was primarily due to **increased reportable catastrophes**, which added **$111.8 million** to the losses, along with a **$13.1 million rise in depreciation expenses**. These negative factors outweighed the benefits from improved Global Housing performance—reflected in a **20% increase in adjusted EBITDA excluding catastrophes**—and **$11.3 million lower restructuring costs**, resulting in a net decline of **$77.3 million (34%)** compared to Q3 2023.  **[0001267238-24-000044_aiz-20240930exx991pressrel.htm:0]** **[0001267238-24-000044_aiz-20240930exx991pressrel.htm:1]** **[0001267238-24-000047_aiz-20240930.htm:36]** 

Why did income before tax drop so sharply in Q3 2024?

The **decline in net income in Q3 2024** was primarily driven by **higher reportable catastrophes**, with the Global Housing segment experiencing an increase of **$110.6 million** in pre-tax reportable events. This negative impact was partially offset by **higher top-line growth in the Homeowners business**, driven by increased policies in-force and higher average premiums, as well as a **favorable prior period reserve development of $30.1 million**.  **[0001267238-24-000047_aiz-20240930.htm:33]** **[0001267238-24-000044_aiz-20240930exx991pressrel.htm:1]** 

What factors contributed to the decline in net income in Q3 2024?

EPS in Q3 2024 fell significantly because the company experienced **higher reportable catastrophes**—adding **$111.8 million** in pre-tax expenses—and a **30% decline in GAAP net income** (from **$190.1 million** to **$133.8 million**), which directly impacted its profitability. Although share repurchases reduced the number of outstanding shares, this benefit was not enough to offset the lower net income, resulting in the steep drop in basic earnings per common share.  **[0001267238-24-000044_aiz-20240930exx991pressrel.htm:0]** **[0001267238-24-000044_aiz-20240930exx991pressrel.htm:1]** **[0001267238-24-000044_aiz-20240930exx991pressrel.htm:0]** **[AIZ_3406017_4]** 

Why did EPS fall significantly in Q3 2024?

7933883180be6b7c517a56846ed1d8ddd6ca41a7bef5eaba481ced9334b55f79

Assurant, Inc.'s operating cash flow was significantly lower in Q1 2024 primarily due to a combination of factors. The company experienced **higher payments to vendors** for mobile device acquisitions required for insurance claims or resale, **increased net paid claims**, and **higher incentive-based payments** related to performance, all of which considerably reduced the net cash provided by operating activities. These outflows were only partially offset by **higher collections of premiums and fees** in the mobile business operations.  **[0001267238-24-000026_aiz-20240331.htm:41]** 

Why was Operating Cash Flow so low in Q1 2024?

The significant jump in operating cash flow in FY 2023 was driven by **higher collections of premiums and fees**, largely due to the company’s **mobile business operations**, and a **decrease in payments to vendors** for acquiring mobile devices. These factors helped boost operating cash flows, despite being partially offset by **higher net paid claims** and the absence of a **tax refund** that benefited FY 2022.  **[0001267238-24-000008_aiz-20231231.htm:105]** **[0001267238-23-000052_aiz-20230930.htm:49]** 

What drove the significant jump in Operating Cash Flow in FY 2023?

The **net cash used in investing activities** became more negative in FY 2023 because the company reinvested proceeds from the sales of maturities of investments in higher yielding fixed maturity securities, used more net cash provided by operating activities, and increased purchases of short-term investments due to the timing of working capital needs.  **[0001267238-24-000008_aiz-20231231.htm:105]** **[0001267238-24-000008_aiz-20231231.htm:104]** 

Why did Investing Cash Flow become much more negative in FY 2023?

The documents indicate that exchange rate changes had a **positive effect** in Q3 2024 (with a change of **11.80 USD million**  **[0001267238-24-000047_aiz-20240930.htm:47]** ), and for the nine months ended September 30, 2024, there was a **positive effect of USD 2.7 million** compared to a negative impact of **(4.2) million** in the prior period.  **[0001267238-24-000047_aiz-20240930.htm:6]** **[0001267238-24-000047_aiz-20240930.htm:47]**  However, the documents do not provide specific reasons or detailed factors that led to this positive impact.

What led to a positive impact from exchange rate changes in Q3 2024?

The drastic swing in net cash change in Q2 2024 was driven by several factors. **Operating activities** saw a significant boost with net cash provided increasing to **$793.4 million** (up from **$445.0 million** in Q2 2023), largely due to higher collections of premiums and fees in the mobile business and a tax refund received in 2024 rather than a tax payment. This was partly offset by increases in **investing activities**, where cash used grew to **$(521.6) million** largely because proceeds from investment sales and maturities were reinvested into higher-yielding fixed maturity securities alongside a reduction in sales of short-term investments. Additionally, there was a larger outflow from **financing activities** with cash used increasing to **$(177.0) million** due mainly to higher share repurchases, and the overall effect of **exchange rate changes** further contributed negatively with a swing to **$(9.1) million** compared to a positive **$4.2 million** in the prior period.  **[0001267238-24-000037_aiz-20240630.htm:44]** 

What factors contributed to the drastic swing in Net Cash Change in Q2 2024?

c48bc67fdccf6935dff8825d4b36dce6e3e8bc7021eb475163fc5679c0640083

The lower **cash and cash equivalents** in Q1 2024 resulted from several factors. **Operating activities** generated significantly less cash—**$82.5 million** compared to previous levels—due to the timing of payments, higher net claims, and increased incentive-based payouts. Meanwhile, **investing activities** consumed more cash at **$328.2 million** because of reinvestment strategies and higher sales of short-term investments, and **financing activities** increased their cash usage to **$96.2 million** with higher share repurchases. Additionally, adverse **exchange rate changes** contributed a negative impact of **$3.6 million**. Collectively, these factors led to a net decrease in cash of **$345.5 million** in Q1 2024.  **[0001267238-24-000026_aiz-20240331.htm:41]** 

Why was Cash and cash equivalents so low in Q1 2024?

The jump in **Total assets** was driven by several factors. **Investments and cash growth** played a significant role, with **investments** rising from **$8,220.9 million** to **$8,971.2 million** and **cash and cash equivalents** increasing from **$1,627.4 million** to **$1,813.4 million**. In addition, **reinsurance recoverables** saw a substantial increase from **$6,649.2 million** to **$7,631.8 million**, and **deferred acquisition costs** grew from **$9,967.2 million** to **$10,083.8 million**, along with a minor uptick in **goodwill** from **$2,608.8 million** to **$2,625.2 million**. These elements collectively contributed to a **$1,697.1 million** increase in total assets as of Q3 2024.  **[0001267238-24-000047_aiz-20240930.htm:2]** 

What drove the jump in Total assets in Q3 2024?

The debt dropped in Q4 2023 mainly because **Assurant repaid $225 million** of its 4.20% Senior Notes that were due in September 2023, which was partially offset by the **issuance of $175 million** of new 6.10% Senior Notes due February 2026. This combination resulted in a net decrease of **$49.3 million** in total debt over the period.  **[0001267238-24-000008_aiz-20231231.htm:103]** 

Why did Debt drop in Q4 2023?

1b659afa6e4cf98fa34809175b11602f7bedccb2e9240e1311bb2a489bb41fea

c50db8c39ac50a704c2638ca205653ae22bc436b4b8464d221ec65184398d91b

Net cash provided by (used in) Operating activities (USD, millions)

Net cash provided by (used in) Investing activities (USD, millions)

Net cash provided by (used in) Financing activities (USD, millions)

Effect of exchange rate changes on cash and cash equivalents (USD, millions)

Net change in cash (USD, millions)

2e3143fdbc40f2c50f756197289d5c0b3f93ec7d3b0db0718a9d9278343c4166

Net earned premiums (USD, millions)

Fees and other income (USD, millions)

Net investment income (USD, millions)

Net realized losses on investments and fair value changes to equity securities (USD, millions)

Total revenues (USD, millions)

Policyholder benefits (USD, millions)

Underwriting, selling, general and administrative expenses (USD, millions)

Interest expense (USD, millions)

Gain on extinguishment of debt (USD, millions)

Total benefits, losses and expenses (USD, millions)

Income before income tax expense (USD, millions)

Income tax expense (USD, millions)

Net income (USD, millions)

Basic earnings per common share (USD)

Diluted earnings per common share (USD)

Weighted average common shares outstanding used in basic per common share calculations (number)

Plus: Dilutive securities (number)

Weighted average common shares outstanding used in diluted per common share calculations (number)

e95af8b4f4514b7128a20a43340e9089c9da663c5ccc1e6a4e693718f2b34c8f

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

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24756b92245e37e3ee4606b997787ff557c7eaba574c8e5e43d3bebeee21ebd8

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Impact of reportable catastrophes (USD millions)

Favorable non-catastrophe prior period reserve development (USD millions)

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74562d0c3f2d14ec967e4c9b288c6fc222cf8f36f2d467db06de45b4e9b91aa3

United States

Foreign countries

- Domestic

- International

Total Revenue

5c2e436a58ad37dd989d35cc8cf6c687ddc01c6ee8f8b7741f9a8007008f7eb2

ASSURANT (AIZ)

Financials