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Q1 for Q1 2023 Financial Supplement 2023

Assurant, Inc. (AIZ)

Financial Supplement as of March 31, 2023

ASSURANT, INC.

FINANCIAL SUPPLEMENT

(UNAUDITED)

As of March 31, 2023

INDEX TO FINANCIAL SUPPLEMENT

Page:

SUMMARY FINANCIAL HIGHLIGHTS

1

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

2

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME AND ADJUSTED EARNINGS

3

SEGMENT STATEMENTS OF OPERATIONS AND SELECTED DATA

4

SEGMENT CONDENSED BALANCE SHEETS

9

INVESTMENTS

10

INVESTMENT RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS

12

RATINGS SUMMARY

13

REGULATION G - NON-GAAP FINANCIAL MEASURES

14

CONTACT INFORMATION

Corporate Headquarters Address:

Investor Inquiries:

260 Interstate North Circle SE

Suzanne Shepherd

Sean Moshier

Atlanta, Georgia 30339

Senior Vice President

Vice President

770-763-1000

Investor Relations and Sustainability

Investor Relations

201-788-4324

914-204-2253

Website Address:

[email protected]

[email protected]

www.assurant.com

Assurant, Inc. (NYSE: AIZ) is a leading global business services company that supports, protects and connects major consumer purchases. A Fortune 500 company with a presence in 21 countries, Assurant supports the advancement of the connected world by partnering with the world's leading brands to develop innovative solutions and to deliver an enhanced customer experience through mobile device solutions, extended service contracts, vehicle protection services, renters insurance, lender- placed insurance products and other specialty products. Leamore at assurant.com or on Twitter @Assurant.

Assurant, Inc.

Summary Financial Highlights (Unaudited)

2023

2022

1Q23-1Q22

1Q23-4Q22

($ in millions, except per share amounts and closing stock price)

% Change

% Change

1Q

4Q

3Q

2Q

1Q

KEY FINANCIAL METRICS

Segment net earned premiums, fees and other income(1)

Total segment revenues(1)

Net income

Adjusted EBITDA(2)

Adjusted EBITDA, excluding reportable catastrophes(3)(4)

Per share:

Net income, per diluted share Adjusted earnings, per diluted share(3)

Adjusted earnings, excluding reportable catastrophes, per diluted share(3)(4)

Debt to total capital ratio

Debt to total capital ratio, excluding AOCI(3)

Dividends from subsidiaries, net of capital infusions

Share repurchases:

Shares repurchased

Average repurchase price per share

Total cost of share repurchase(5)

Common stock dividends:

Dividend per share

Total paid

Yield(6)

AIZ closing stock price (NYSE)

Share Data:

Weighted average basic common shares outstanding Incremental common shares from:

Performance share units and employee stock purchase plan Weighted average diluted common shares outstanding

$

2,545.6

$

2,643.5

$

113.6

$

242.9

$

293.3

$

2.12

$

2.75

$

3.49

32.6 %

28.7 %

$

112.0

-

$

-

$

-

$

0.70

$

37.0

2.33 %

$

120.07

53,492,413

205,749

53,698,162

$

2,547.2

$

2,474.4

$

2,479.0

$

2,445.9

4.1 %

(0.1)%

$

2,640.8

$

2,550.2

$

2,562.7

$

2,522.2

4.8 %

0.1 %

$

68.1

$

7.3

$

52.2

$

149.0

(23.8)%

66.8 %

$

274.2

$

116.0

$

257.1

$

308.9

(21.4)%

(11.4)%

$

296.3

$

239.6

$

277.4

$

315.0

(6.9)%

(1.0)%

$

1.27

$

0.14

$

0.95

$

2.65

(20.0)%

66.9 %

$

3.23

$

1.01

$

2.95

$

3.89

(29.3)%

(14.9)%

$

3.56

$

2.81

$

3.25

$

3.98

(12.3)%

(2.0)%

33.5 %

34.2 %

32.3 %

30.6 %

200

bps

(90) bps

29.0 %

29.1 %

28.7 %

28.7 %

-

bps

(30) bps

$

89.1

$

142.5

$

188.8

$

129.1

(13.2)%

25.7 %

89,887

492,615

1,285,056

1,480,000

(100.0)%

(100.0)%

$

144.63

$

163.34

$

180.38

$

163.80

(100.0)%

(100.0)%

$

13.0

$

80.4

$

231.8

$

242.4

(100.0)%

(100.0)%

$

0.70

$

0.68

$

0.68

$

0.68

2.9 %

- %

$

37.5

$

36.7

$

38.6

$

37.4

(1.1)%

(1.3)%

2.24 %

1.87 %

1.57 %

1.50 %

83 bps

9 bps

$

125.06

$

145.27

$

172.85

$

181.83

(34.0)%

(4.0)%

53,415,238

53,717,373

54,607,321

55,779,362

(4.1)%

0.1 %

358,624

349,232

407,626

401,042

(48.7)%

(42.6)%

53,773,862

54,066,605

55,014,947

56,180,404

(4.4)%

(0.1)%
  1. Includes net earned premiums, fees and other income and total revenues of the Global Lifestyle and Global Housing operating segments.
  2. Refer to page 3 for a reconciliation of Adjusted EBITDA to its most comparable GAAP measure, net income.
  3. Refer to the Footnotes in Regulation G - Non GAAP Financial Measures for reconciliations of non-GAAP measures to the most comparable GAAP measure.
  4. Represents individual catastrophic events that generate losses in excess of $5.0 million, pre-tax, net of reinsurance and client profit sharing adjustments and including reinstatement and other premiums.
  5. As of March 31, 2023, there was $274.5 million remaining under the total repurchase authorization.
  6. Common stock dividend yield is calculated by annualizing the quarterly common stock dividend per share and dividing by the quarter's closing stock price.

1

Assurant, Inc.

Consolidated Condensed Statements of Operations (Unaudited)

2023

2022

1Q23-1Q22

1Q23-4Q22

($ in millions)

1Q

4Q

3Q

2Q

1Q

% Change

% Change

Revenues:

Net earned premiums

$

2,265.5

$

2,262.9

$

2,197.1

$

2,168.9

$

2,136.4

6.0 %

0.1 %

Fees and other income

282.7

301.1

294.6

325.2

322.4

(12.3)%

(6.1)%

Total net earned premiums, fees and other income

2,548.2

2,564.0

2,491.7

2,494.1

2,458.8

3.6 %

(0.6)%

Net investment income

105.2

102.3

83.5

92.0

86.3

21.9 %

2.8 %

Net realized losses on investments and fair value changes to equity securities

(10.6)

(13.5)

(27.4)

(76.4)

(62.4)

83.0

%

21.5 %

Total revenues

2,642.8

2,652.8

2,547.8

2,509.7

2,482.7

6.4

%

(0.4)%

Benefits, losses and expenses:

Policyholder benefits

645.6

599.3

670.5

600.0

490.0

31.8

%

7.7 %

Underwriting, selling, general and administrative expenses

1,823.2

1,921.5

1,842.5

1,811.7

1,790.6

1.8

%

(5.1)%

Goodwill impairment

-

7.8

-

-

-

N/A

(100.0)%

Interest expense

27.0

27.9

26.3

27.2

26.9

0.4

%

(3.2)%

(Gain) loss on extinguishment of debt

(0.1)

-

-

0.9

-

N/A

N/A

Total benefits, losses and expenses

2,495.7

2,556.5

2,539.3

2,439.8

2,307.5

8.2

%

(2.4)%

Income before provision for income taxes

147.1

96.3

8.5

69.9

175.2

(16.0)%

52.8 %

Provision for income taxes

33.5

28.2

1.2

17.7

26.2

27.9

%

18.8 %

Net income

$

113.6

$

68.1

$

7.3

$

52.2

$

149.0

(23.8)%

66.8 %

Pre-tax income margin(1)

5.8 %

3.8 %

0.3 %

2.8 %

7.1 %

(130) bps

200

bps

Net income margin(2)

4.5 %

2.7 %

0.3 %

2.1 %

6.1 %

(160) bps

180

bps

Effective tax rate for net income

22.8 %

29.3 %

14.1 %

25.3 %

15.0 %

780

bps

(650) bps

Investment yield

4.34 %

4.27 %

3.57 %

3.93 %

3.46 %

88

bps

7

bps

Real estate joint venture partnerships (loss) income from sales and

$

(4.4)

$

9.2

$

(2.9)

$

12.2

$

(0.6)

(633.3)%

(147.8)%

depreciation expense, pre-tax
  1. Equals income before provision for income taxes divided by total net earned premiums, fees and other income.
  2. Equals net income divided by total net earned premiums, fees and other income.

2

Assurant, Inc.

Reconciliation of Adjusted EBITDA to Net Income and Adjusted Earnings (Unaudited)

2023

2022

1Q23-1Q22

1Q23-4Q22

($ in millions)

1Q

4Q

3Q

2Q

1Q

% Change

% Change

GAAP net income

$

113.6

$

68.1

$

7.3

$

52.2

$

149.0

(23.8)%

66.8 %

Less:

Interest expense

27.0

27.9

26.3

27.2

26.9

0.4

%

(3.2)%

Provision for income taxes

33.5

28.2

1.2

17.7

26.2

27.9

%

18.8

%

Depreciation expense

26.4

21.6

22.6

21.8

20.3

30.0

%

22.2 %

Amortization of purchased intangible assets

18.7

17.8

17.3

17.0

17.6

6.2

%

5.1

%

Adjustments, pre-tax:

Net realized losses on investments and fair value changes to equity securities

10.6

13.5

27.4

76.4

62.4

(83.0)%

(21.5)%

Non-core operations

12.2

34.4

2.9

36.7

5.5

121.8

%

(64.5)%

Restructuring costs

6.4

52.9

-

0.2

-

N/A

(87.9)%

Assurant Health runoff operations

(7.5)

-

0.1

0.5

-

N/A

N/A

Other adjustments(1)

2.0

9.8

10.9

7.4

1.0

100.0

%

(79.6)%

Adjusted EBITDA

$

242.9

$

274.2

$

116.0

$

257.1

$

308.9

(21.4)%

(11.4)%

Segment Adjusted EBITDA

Global Lifestyle

$

198.9

$

182.3

$

179.4

$

221.0

$

226.7

(12.3)%

9.1

%

Global Housing

68.4

119.1

(38.5)

61.0

104.4

(34.5)%

(42.6)%

Corporate and Other

(24.4)

(27.2)

(24.9)

(24.9)

(22.2)

(9.9)%

10.3

%

Total

$

242.9

$

274.2

$

116.0

$

257.1

$

308.9

(21.4)%

(11.4)%

Adjusted EBITDA(2)

$

242.9

$

274.2

$

116.0

$

257.1

$

308.9

(21.4)%

(11.4)%

Interest expense

(27.0)

(27.9)

(26.3)

(27.2)

(26.9)

(0.4)%

3.2

%

Provision for income taxes

(41.6)

(50.9)

(12.4)

(45.7)

(43.1)

3.5

%

18.3

%

Depreciation expense

(26.4)

(21.6)

(22.6)

(21.8)

(20.3)

(30.0)%

(22.2)%

Adjusted earnings(2)

147.9

173.8

54.7

162.4

218.6

(32.3)%

(14.9)%

Reportable catastrophes, pre-tax

50.4

22.1

123.6

20.3

6.1

726.2

%

128.1

%

Tax impact of reportable catastrophes

(10.6)

(4.7)

(26.0)

(4.2)

(1.3)

(715.4)%

(125.5)%

Adjusted earnings, excluding reportable catastrophes(2)

$

187.7

$

191.2

$

152.3

$

178.5

$

223.4

(16.0)%

(1.8)%
  1. Refer to the Footnotes in Regulation G - Non GAAP Financial Measures for detail of what is included in Other adjustments.
  2. Refer to the Footnotes in Regulation G - Non GAAP Financial Measures for reconciliations of non-GAAP measures to the most comparable GAAP measure.

3

Disclaimer

Assurant Inc. published this content on 02 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2023 20:37:06 UTC.

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