ASSURANT, INC. Q1 FY2024 earnings call

• Adjusted EBITDA grew 31% year-over-year to $384 million and adjusted EPS grew 42% year-over-year excluding reportable catastrophes. • Global Housing and Global Lifestyle drove first quarter performance. • Unique business model with market leadership in specialized markets, leveraging scale and B2B2C integration. • Investments in partnerships (e.g., Telstra, Spectrum Mobile) and acquisitions (e.g., iSmash in Europe) to support growth. • Actions to address inflation in Auto, including rate increases and enhanced claims adjudication. • Innovations in Housing like Assurant Tech Pro for multifamily housing and inflation guard updates in homeowners.

Global Lifestyle: Adjusted EBITDA was $208 million in Q1 2024, a year-over-year increase of 4% (5% on constant currency basis). Global Automotive: Adjusted EBITDA declined 9% in Q1 due to persistent inflation impacts on vehicle parts and labor repair costs. Global Housing: Adjusted EBITDA excluding reportable catastrophes increased 74% to $205 million in Q1, driven by strong performance in homeowners and renters/other segments, with over half the increase from improving non-cat loss ratios and higher average premiums.

• Expect Enterprise adjusted EBITDA to grow mid-single digits excluding catastrophes. • Global Housing is expected to lead enterprise growth in 2024. • Global Lifestyle's full-year outlook unchanged, driven by Connected Living growth but offset by incremental investments. • Adjusted EPS growth expected to approximate adjusted EBITDA growth. • 2024 catastrophe reinsurance premiums estimated at ~$190 million, a reduction from 2023, with increased coverage at attractive terms.

• Macroeconomic conditions including inflation, foreign exchange, and interest rates may impact growth. • Client portfolio movements in Global Housing, such as onboarding and offboarding clients, may affect tracked loans and placement rates. • Persistent inflation impacts on Auto claims costs continue to pressure earnings.

Q: In Connected Living, how long can you continue to push top line and profitability with stable covered device count?

A: Bulk of US postpaid business is strong, with some softness in Japan and prepaid, but clients are well-positioned longer term.

Q: When does the inflation guard in homeowners get updated and what's the adjustment?

A: It gets updated July 1, with a very modest adjustment of roughly 1%.

Q: How much weather impact was in Q1 housing non-cat loss experience?

A: Non-cat loss ratio was just under 39%, relatively in line with expectations.

Q: Are onboarding expenses for Bank of America and Telstra largely complete?

A: Bank of America ramping up, with policies expected to come online by end of third quarter; Telstra launch ongoing with more to come.

Q: Thoughts on Auto inflation and future rate actions?

A: Auto earnings expected flat in 2024, with rate actions providing tailwind long term, expecting improvement in 2025.

Q: Bank of America portfolio impact on placement rate and insured values?

A: Portfolio movements may cause ups and downs, but policy counts expected higher by year end.

Q: Current level and expectations for trade-in programs and promotional activity?

A: Margins stable, promotional activity light in Q1, but well-positioned if activity picks up.

Q: Reinsurance costs and per event retention?

A: 2024 catastrophe reinsurance premiums ~$190 million, down from 2023; per event retention at one in five probable maximum loss, with increased top-end coverage.