Q2 2026 Assurant Inc Earnings Call Transcript
Key Points
- Record second-quarter 2026 results with adjusted EBITDA and EPS growth of 18% and 19%, respectively, excluding reportable catastrophes, marking the second consecutive quarter of record earnings.
- Global Lifestyle segment delivered strong performance with adjusted EBITDA up 21% in Q2, driven by 29% growth in Connected Living, including a 22% increase when normalized for non-run rate items.
- Connected Living added over 4 million new protected devices year-over-year and serviced 7 million devices in Q2, up 1.8 million, reflecting strong subscriber growth and expansion of reverse logistics programs.
- Global Housing secured a new lender-placed partnership with Freedom Mortgage, a top 10 U.S. mortgage servicer with 2.6 million loans, enhancing market position and supporting future growth.
- Company raised full-year 2026 outlook, now expecting mid-single-digit adjusted EBITDA and EPS growth (excluding cats), with underlying growth of approximately 10% when excluding prior year reserve development.
- Strong capital position with $911 million in liquidity, allowing for increased share repurchases to the upper end of the $300-$350 million range, with $230 million already repurchased year-to-date.
- Global Housing results were impacted by $12 million of reportable catastrophes in Q2, and the non-cat loss ratio benefited from lower-than-typical weather events, which may not be sustainable.
- Lender-placed placement rate declined sequentially to 2.02% due to a client transferring a portion of their loan portfolio to a non-Assurant servicer, affecting gross written premium in the quarter.
- Full-year 2026 outlook includes $71 million of lower favorable prior year reserve development compared to 2025, which will pressure earnings growth.
- Connected Living growth included $10 million in non-run rate benefits from a client adjustment and an international tax benefit, which may not recur in future periods.
- Global Housing's year-to-date non-cat loss ratio is only relatively consistent with 2025, and the favorable Q2 loss ratio was partly due to reduced claims frequency from fewer weather events, indicating potential volatility.
- The company faces tougher year-over-year comparisons in the back half of 2026, particularly in Connected Living, which may moderate growth rates.
Welcome to Assurant's second-quarter 2026 conference call and webcast. (Operator Instructions)
It is now my pleasure to turn the floor over to Sean Moshier, Vice President of Investor Relations. You may begin.
Thank you, operator, and good morning, everyone. We look forward to discussing our second-quarter results with you today. Joining me for Assurant's conference call are Keith Demmings, our President and Chief Executive Officer; and Keith Meier, our Chief Financial Officer. Yesterday, after the market closed, we issued an earnings release announcing our results for the second quarter 2026. The release and corresponding financial supplement are available on assurant.com.
Also on our website is a slide presentation for our webcast participants. Some of the statements made today are forward-looking. Forward-looking statements are based upon our historical and current expectations and subject to risks, uncertainties, and other factors that may cause actual results to differ
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