PMC distribution channel witnessed strong renters’ policy growth of 14%
Assurant hosted its Q2’23 earnings call on Aug 2, 2023. Select highlights:
- Q2 results exceeded expectations with adjusted EBITDA (excluding cats) growing 21% YoY and 6% YTD.
- Strong performance driven by momentum in Global Housing from higher top-line growth and improved loss experience.
- Focus on product lines with a strong competitive advantage, reducing non-core areas, and deploying digital solutions for enhanced customer experience and operational efficiency.
- Homeowners business top-line performance increased 18% YoY, with higher insured values and state-approved rate increases.
- Renters business – property management company distribution channel saw strong policy growth of 14% YTD, driven by the rollout of Cover360.
- Global Lifestyle segment shows steady improvement from the second half of last year.
- Lifestyle earnings for the first 6 months increased by $34 million or 9% compared to the second half of last year, driven by improved Connected Living results.
- Investment in technology platforms to enhance product innovation and service delivery for an improved customer experience.
- Strong interest from existing and potential mobile partners due to innovation and global trade-in capabilities.
- Implemented expense actions to mitigate macroeconomic headwinds in global operations.
- Positive impact of actions in Europe, stabilizing earnings and enabling focus on top-line growth.
- Significant progress with partners in executing large-scale protection and administration programs for extended service contracts.
- Improvement in the second-quarter loss ratio in extended service contracts due to rate increases with several clients, after several quarters of elevated claim severity.
- Mobile segment earnings declined due to soft results in Japan and Europe, as anticipated.
- In Japan, subscriber declines continue as the 4-year protection product runs off.
- In Europe, despite benefiting from previous expense actions, lower volumes impacted year-over-year results.
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