Assurant : Q3 2020 Investor Presentation 2020

Assurant : Q3 2020 Investor Presentation 2020

Assurant, Inc.

Equities

AIZ

US04621X1081

Multiline Insurance & Brokers

Company Profile

Analysts' Consensus

Latest news about Assurant, Inc.

Chart Assurant, Inc.

Income Statement Evolution

Ratings for Assurant, Inc.

EPS Revisions

Quarterly earnings - Rate of surprise

Sector Other Multiline Insurance & Brokers

November 10, 2020 at 05:25 am EST

Assurant Investor Overview

Third Quarter 2020

Cautionary Statement

Some of the statements included in this presentation, particularly those with respect to the proposed HYLA Mobile acquisition and process to explore strategic alternatives for our Global Preneed segment, including our financing plans and any statements regarding our anticipated future financial performance, business prospects, growth and operating strategies and other similar matters, including performance outlook, financial objectives and drivers, are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.

Refer to Exhibit 1 in the Appendix for factors that could cause our actual results to differ materially from those currently estimated by management and information on where you can find a more detailed discussion of these factors in our SEC filings.

Assurant uses non-GAAP financial measures to analyze the company's operating performance. Because Assurant's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing Assurant's non-GAAP financial measures to those of other companies.

Refer to Exhibit 2 in the Appendix for a reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures.

Investment Highlights

Multiple Levers To Drive Long-Term Shareholder Value

Profitable growth in attractive markets where we have leadership positions

Specialty risk businesses with superior returns and cash flows

Capital-light businesses with continued growth in the connected world

More diversified earnings with lower catastrophe exposure and a countercyclical hedge Track record of disciplined capital deployment

We are a leading provider of lifestyle and housing solutions

Protecting	In partnership
major consumer	with leading
purchases …	brands that …
•	Home and Rental	•	Make
•	Car	•	Sell
•	Mobile Devices	•	Finance

Appliances

Through innovative offerings …

Device lifecycle management
Premium tech support
Integrated point-of- lease billing and tracking

Assurant is more than a traditional insurance company.

Further Aligning Strategic Focus on Market-leading Lifestyle and Housing Businesses

HYLA Mobile Acquisition

HYLA Mobile is a leading provider of smartphone software and trade-in and upgrade services

Scales our trade-in and upgrade offerings, adds new capabilities and provides a complementary client base, including the largest mobile carriers, retailers and OEMs in North America and Japan

HYLA has delivered double-digit growth during the past three years by leveraging a unique software-as-a-service (SaaS) approach and patented technology to drive device trade-in and upgrade programs, processing and disposition

Combined businesses will further sustainability practices by extending the life of mobile devices, servicing more than 30 trade-in or upgrade programs globally and 14 million devices annually

Exploring Strategic Alternatives for Global Preneed

On October 28, 2020, Assurant announced that it has started exploring a range of strategic alternatives, including the possible sale of the business

Allows us to put an even sharper focus on growth opportunities across our lifestyle and housing solutions that are driving the highest returns at a time when the world is connecting at an accelerating pace

We Partner with Industry-Leading Clients Across Global Lifestyle and Global Housing

GLOBAL LIFESTYLE

Connecting and protecting consumer devices, appliances, cards and transactions.

Connected Living
Global Automotive
Global Financial Services

Revenue(1)

9-Months 2020 = $5.5 Billion

Full-Year 2019 = $7.1 Billion

GLOBAL HOUSING

Helping customers protect their properties.

Multifamily Housing
Lender-PlacedInsurance
Specialty & Other

Revenue(1)

9-Months 2020 = $1.5 Billion

Full-Year 2019 = $2.0 Billion

GLOBAL PRENEED(2)

Helping ease the financial and emotional burden associated with end-of-life planning.

Prearranged Funeral Funding
Senior Lifestyle Planning Solutions

Revenue(1)

9-Months 2020 = $156 Million

Full-Year 2019 = $201 Million

Revenue equals net earned premiums, fees and other income.
On October 28, 2020, the company announced that it is exploring a range of strategic alternatives for Global Preneed, including the possible sale of the business.

Repositioned For Continued Profitable Growth

Earnings expansion, outpacing market declines in lender-placed
Double-digitgrowth in rest of portfolio driven by Connected Living, Multifamily Housing and Global Automotive
Year-to-date2020:
- Net operating income, excluding catastrophes(1), of $527 million, up 21% from 2019
- Earnings per diluted share, excluding catastrophes(1), of $8.69, up 25% from 2019

Net operating income and earnings per diluted share both exclude catastrophes, which throughout this presentation refer to reportable catastrophes as defined in Exhibit 2 in the Appendix. Refer to Exhibit 2 in the Appendix for information regarding non-GAAP financial measures, including reconciliations to the most directly comparable GAAP measures.
Beginning June 1, 2018, net operating income includes TWG earnings, per the acquisition.

Net Operating Income(1,2) ($ millions)

			$515	$574
			2015-2019(2)


$418	$379	$413			8% CAGR
				Net Operating

					Income

2015 2016 2017 2018 2019

Earnings Per Diluted Share(1,2)

		$8.65	$9.21
	$7.46
		2015-2019(2)

$6.06	$6.12			11% CAGR


				Earnings Per
				Diluted Share

2015 2016 2017 2018 2019

Long-Term Drivers of Outperformance

MARKET-	INNOVATIVE
LEADING
OFFERINGS
POSITIONS

MACRO &

CONSUMER

TRENDS

LEADING BRANDS	BROAD,
DIFFERENTIATED
& DISTRIBUTION
CAPABILITIES
PARTNERS

GREATER

DIVERSIFICATION

DISCIPLINED

CAPITAL

DEPLOYMENT

STRONG

EARNINGS &

CASH FLOW

Portfolio of Market-Leading Businesses with Attractive Growth Prospects

Mobile

Auto

Multifamily

Lender-placed

Preneed(1)

Housing

Insurance

Favorable

Refurbed

devices,

Stable

overall

Household

Mortgage

Favorable

Industry

Internet of

Things

car sales in U.S.

formation

originations

demographics driven

Trends

and 5G upgrades

over long-term

growing again

by baby boomers

Attachment

Higher device

Mix of new and

Policy penetration

U.S. economic

Improved point-of-

used cars and

and

Rate Drivers

prices

and persistency

sale technology

global expansion

housing cycle

Assurant

Industry

Combined

PMC and affinity

Partnering with

Alignment with

consolidation;

strength of

Positioning

channel growth

industry leaders

industry leader

global growth

Assurant and TWG

On October 28, 2020, the company announced that it is exploring a range of strategic alternatives for Global Preneed, including the possible sale of the business.

Partnerships with Leading Global Brands and Broad Distribution Channels

HOUSING	AUTO	MOBILE

7 of the Top 10	8 of the Top 10	4 of the Top 5
largest mortgage	global auto	global connected
servicers in the U.S.	manufacturers	living brands

	Mortgage
Small PMCs	Servicers

LARGE PMCs

BANKS

Dealers,

Agents,

National E-tailers

Accounts

MULTIFAMILY HOUSING

8 of the Top 10

largest multifamily housing

property management

companies (PMCs) in the U.S.

PRENEED(1)

The largest funeral home

and cemetery service provider

in the U.S. and Canada

AUTO TPA	RETAILERS

OEMs	MOBILE
	CARRIERS
Automotive,	Cable
Mobile Device

Refer to Exhibit 3 in the Appendix for list of sources. Information listed as of September 30, 2020, unless otherwise noted.

On October 28, 2020, the company announced that it is exploring a range of strategic alternatives for Global Preneed, including the possible sale of the business.

Robust and Diversified Cash Flow Creates Significant Flexibility to Drive Shareholder Value

Robust cash flow with over $5.7B in segment dividends over the past 10 years(1)
On average, ~100% of segment earnings distributed to holding company
$460 million holding company liquidity available as of Q3 2020
More balanced portfolio creates diversified source of cash flows
- Risk businesses generate strong cash flows and provide capital to support growth
- Growth in less capital-intensive businesses generates more predictable cash flows over time

Conversion Percentage of

Segment Earnings(2)

$5.7B Total

Dividends

(3)

(3,4)

(3,5)

Consists of dividends from operating subsidiaries to the holding company, net of infusions, and excluding acquisitions and divestitures.
Conversion percentage equals segment dividends (defined above) divided by segment operating earnings. Segment operating earnings exclude Corporate and Other losses, interest expense and preferred dividends.
2015-2018exclude dividends and infusions relating to Assurant Health and Assurant Employee Benefits.
2016-2017exclude $1.5 billion proceeds received from sale of Assurant Employee Benefits and Assurant Health wind-down.
2018 includes $237 million in proceeds received from a reduction in deferred tax liabilities from U.S. tax reform. Also includes $148 million in dividends from The Warranty Group.

Capital Deployment Strategy Creates Balance Between Shareholder Returns and Growth

Capital Management Principles

Invest in business to drive sustained innovation and growth
Select tuck-in acquisitions
Target to maintain investment grade rating
Return excess capital to shareholders
- Repurchased 64% of shares since IPO(1)
- In 2019, returned $426 million to shareholders

Balanced Capital

Deployment Strategy

12% 11%

2004 -

33% 2019

44%

Dividends

(1) As of September 30, 2020.

High Quality and Diversified Investment Portfolio

				Fixed Maturity
		Preferred	Securities by
	Other 4%	Credit Quality	(1)
	Real Estate 1%	Equity 2%
• Total portfolio market value of			09/30/20
Commercial

$17.4 billion(2)	Mortgages 4%			AAA / Aa / A


				62%

Fixed maturity investments, cash and short-term investments represent 89% of the portfolio
95% of fixed maturity investments are investment grade
Average duration of approximately 7 years(3)

	Cash and
	Short-term
	14%	Investment
U.S. Govt /
Agency 1%		Portfolio
		Breakdown(1) Corporate 55%
Foreign Govt		09/30/20

6%

Municipals 1%

RMBS 7%

CMBS 2%

ABS 3%

Baa 33%

Ba and Lower

Expressed as a percentage of total investments and cash and cash equivalents
Includes total investments and cash and cash equivalents
Average duration excludes Real Estate and Other investments and includes cash and cash equivalents held at Corporate

Long-Term Strategy to Deliver Sustained Outperformance

MARKET-	INNOVATIVE
LEADING
OFFERINGS
POSITIONS

Executing strategy should result in:

Even stronger portfolio of businesses with leadership positions and attractive growth prospects

Deeper partnerships with leading brands to sustain innovation, drive better customer experience

LEADING BRANDS	BROAD,
DIFFERENTIATED
& DISTRIBUTION
CAPABILITIES
PARTNERS

Broader offerings beyond insurance to meet evolving consumer needs
Leader in innovation for the connected world - across devices, cars and home
Continue to advance thinking and implement best practices in governance and social responsibility approach

Financial Update

Third Quarter 2020 Results

Q3 2020 Net Operating Income ex. CATs(1,2) ($M)

225.0	13.2	(23.5)(1)
200.0	100.1	(19.9)

175.0		(4.7)	171.8

150.0
125.0
100.0	106.6

75.0
50.0
25.0
-

Refer to Exhibit 2 in the Appendix for information regarding non-GAAP financial measures, including reconciliations to the most directly comparable GAAP measures.
Reportable catastrophes include catastrophe losses, net of reinsurance and client profit sharing adjustments, as well as reinstatement and other premiums.

Total Assurant

Net operating income, excluding CATs(1,2), increased 22% compared to prior year period, primarily due to more favorable non-catastropheloss experience in Global Housing and continued growth in Connected Living within Global Lifestyle
Earnings per diluted share, excluding CATs(1,2), increased 25% compared to prior year period, driven primarily by the factors noted above

Global Lifestyle

Earnings increased from prior year period, driven primarily by Connected Living mainly due to mobile from continued subscriber growth in North America and Asia Pacific, as well as improved profitability from extended service contracts
Results were partially offset by lower investment income and unfavorable foreign exchange, as well as lower volumes and unfavorable loss experience in Global Financial Services, including impacts from COVID-19

Global Housing

Earnings, excluding catastrophes, increased mainly due to more favorable non- catastrophe loss experience across specialty products and lender-placed driven by lower claims frequency, reserve releases related to run-off business and previously implemented underwriting initiatives
Growth in multifamily housing and specialty products also contributed to the increase

Global Preneed

Earnings increased in third quarter 2020 compared to the prior year period. Third quarter 2019 included a charge of $9.9 million for an accounting adjustment. Excluding this adjustment, underlying results decreased primarily due to lower investment income compared to the prior year period

Appendix

Transformed for Sustained Outperformance

2015	2016	2017	2018	2019-2020
				Deepened Client
				Relationships &
Portfolio	New	Returned to	Strategic TWG	Strong Global
		Lifestyle Growth
Realignment	Organizational	Profitable	Acquisition

	Model	Growth		Exploring Options

				for Global Preneed

Embedded expense discipline to fund growth and innovation

Investments in technology, AI and data analytics to support better customer experience Deployed key talent across enterprise to support greater cross-selling and innovation

Repositioned for

long-term,continued profitable growth..

while deploying capital to drive

shareholder value

Connected Living

Connected Living: Track Record of Double-Digit
Earnings Expansion	Growth in Mobile Covered Devices

	(millions)
Key Drivers:	53 14% CAGR
• Favorable market trends driving higher	32
attachment rates

Continued share gains through alignment

	with market leaders and new entrants	2015	2019
•	New clients and offerings driving subscriber
Connected Living Net Operating Income
	growth and creating new profit pools
			($ in millions)

•	Embedded value as new programs scale,			$233 38% CAGR
	particularly in key markets like North
	America and Asia	$64


		2015	2019

Differentiated Products and Evolving Consumer Dynamics Driving Demand for Mobile Protection Services

Increasing smartphone prices driving demand for device protection products and services
Longer customer ownership and upgrade cycle drives higher attachment rates
Consumer dependency and device complexity drive incremental value for consumers

Evolution of Mobile Protection Bundle

(Illustrative)

201020152019

				$12 - $15
				per month

				AppleCare


				Personal
		$10		TechPro


		Pocket Geek
		per month

		Upgrade		Upgrade


$7 - 8		Data		Data
per month	Protection		Protection

Mobile		Mobile		Mobile
Protection		Protection		Protection

Continue to Expand Offerings and Profit Pools

Beyond Insurance

Since 2015:

Strengthened core capabilities and		Expanded our		Developing next
enhanced customer experience	product offerings		generation of solutions

Program	Repair	Trade-In/	Asset	AppleCare	Personal TechPro	Digital ID	Connected
Administration	and	Upgrade	Disposition	Related Products	and Pocket Geek		Home
	Logistics

Global Automotive

Leading Global Automotive Franchise Driving

Above-Market Growth

Protected Vehicles(1)

(millions)

Leader with strong track record of growth supported by 2018 acquisition of The Warranty Group
Broad set of innovative and differentiated product offerings and capabilities
Superior growth with leading brands across all key distribution channels

20152019

Deep capabilities and scale that drive superior client performance and growth

Well-positioned for continued outperformance through product innovation, new capabilities and embedded earnings

Note: Automotive market represents global new and used auto sales as sourced from BMI Research, NADA and Mannheim.

(1) Beginning June 1, 2018, net operating income and protected vehicles include TWG, per the acquisition.

Global Automotive Net Operating Income(1)

($ in millions)

$153

$39

20152019

Increasing Demand for Vehicle Service Contracts

• Increased demand for vehicle service contracts

(VSC) driven by longer ownership and loan

terms

Increasing Vehicle Service Contract Attachment Rates(1)

• Auto technology and complexity drives

increasing value of protection products

• Finance & Insurance products represent a

greater portion of dealers' economics

- 26% of total dealership gross profit in 2018(1)

• F&I products and services enhance customer

loyalty and retention

(New and Used Autos %)

39 40

• VSC sales resilient in slower economy with

growing penetration rates for both new and

used cars

20112018

New Used

(1) National Auto Dealers Association (NADA).

Greater Predictability with Significant Embedded Earnings

Embedded Value

Significant unearned premium reserves that will flow through revenue and earnings over the service contract period

Growing Revenues

2019 net earned premium is ~83% of our 2019 net written premium - demonstrating business growth

Unearned Embedded Revenue of $7.8 Billion

is ~4x 2018 Global Automotive Revenue

Global Automotive 2018 Unearned Premium

by Vintage Year(1)

				38%
			29%
		18%
	9%
6%
2014 and	2015	2016	2017	2018
Prior

(1) Net of ceded unearned premium of $2.4 billion. At end of second quarter 2020, unearned premium was approximately $8.5 billion.

Multifamily Housing

Vertically Integrated Capabilities Address Unique Customer Needs

Drives differentiation and value to clients and end-consumers

Underwriting	Legal and	Product	Systems	Customer	Client Marketing	Client Sales
	Compliance	Development	Integration	Service and		Optimization
				Claims

• Risk management expertise	•	Superior customer experience	•	Deep compliance expertise
• Products and services tailored		across entire policy lifecycle		across all 50 states

to unique customer needs	•	Seamless integration with	•	National account
		leasing platform and staff		management team optimizes
				program performance

Integrated Solutions Across Resident Lifecycle

Move In

P A Y

Move Out

Tenant

Renters

Tracking And

Receivables

Bonds

Insurance

Verification

Management

Increase

Occupancy;

Reduce Risk

Exposure

Leasing

Office

Client

and Guaranteed

Efficiency

Minimize

Reduce

Benefits

Acceptance

Eliminate

Bad Debt

Administrative Tasks

via PMC Channel

Coverage Gaps

Resident

Lower

Easy, Convenient

Maintain

Accommodating

Move-in Cost

Purchase

Protection

Process and

Benefits

Payment Options

Delivering Outperformance in Multifamily Housing

High-growth, strong return offerings

Benefitted from continued growth as rental households grew(1)
Aligned with long-tenured PMC and affinity clients with expanding share
Expanded offerings to provide end-to- end solutions
Invested in digital platform to deliver superior customer experience

Strong Growth in Multifamily Housing

18% Revenue CAGR

Net Earned Premiums and Fee Income

($M)

$429

$406

$366

$321

$283

$232

$190

$150

$115

2011 2012 2013 2014 2015 2016 2017 2018 2019

(1) Source: U.S. Census.

Lender-placed Insurance

Successfully Navigated Lender-placed Market Normalization

Continue to play valuable role in homeownership
Navigated market normalization
- Industry delinquency rates below historic averages(1)
- Assurant placement rate decline moderating: 1.58% in Q4 2019
- Seriously delinquent policies less than 20% of overall portfolio as of year-end 2019

Lender-placed Net Operating Income(2)

and Placement Rate %

$2502.5%

Income		$200					2.0%
	$150							1.5%
Operating	($M)
$100					1.0%

Net		$50					0.5%

		$0						0.0%

		2015	2016	2017	2018	2019

Incremental reinsurance purchase

Placement Rate

Mortgage Bankers Association.
Lender-placednet operating income excludes after-tax reportable catastrophes of $4M in 2019, $93M in 2018, $131M in 2017, $67M in 2016 and $12M in 2015.

Well-Positioned to Meet Policyholder Needs Should U.S. Housing Market Weaken

Revenue

Net Operating

Income,

Excluding CATs

Global Housing GAAP Equity

Stabilization in 2019

Placement rate declines moderating
Premium rates to reflect loss experience and expenses
Lender-placedincome down slightly, excluding additional 2019 catastrophe reinsurance costs
Majority of excess already released to holding company

In Housing Downturn,

Global Housing Expects…

Placement rate to increase
Well-positionedto protect policyholders
Leverage more efficient operating platform to support higher volumes with less incremental costs than last downturn
No expected change if geographic exposure remains constant

Exhibit 1: Safe Harbor Statement

Some of the statements included in this presentation and its exhibits, particularly those with respect to the proposed HYLA Mobile acquisition and process to explore strategic alternatives for Global Preneed, including the company's financing plans and any statements regarding the company's anticipated future financial performance, business prospects, growth and operating strategies and similar matters, may constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The company does not have a definitive timetable to complete its review of strategic alternatives for Global Preneed and there can be no assurance that any such process will result in a transaction.

You can identify forward-looking statements by the use of words such as "outlook," "will," "may," "can," "anticipates," "expects," "estimates," "projects," "intends," "plans," "believes," "targets," "forecasts," "potential," "approximately," and the negative version of those words and other words and terms with a similar meaning. Any forward-looking

statements contained in this presentation or its exhibits are based upon our historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that our future plans, estimates or expectations will be achieved. Our actual results might differ materially from those projected in the forward-looking statements. We undertake no obligation to update or review any forward-looking statement, whether as a result of new information, future events or other developments. The following factors could cause our actual results to differ materially from those currently estimated by management, including those projected in the company outlook: (i) the impact of the COVID-19 pandemic, including the scope and duration of the outbreak, government actions and restrictive measures taken in response, and its effect on the global economic and financial markets; (ii) the loss of significant clients, distributors or other parties with whom we do business, or if we are unable to renew contracts with them on favorable terms, or those parties facing financial, reputational or regulatory issues; (iii) significant competitive pressures, changes in customer preferences and disruption; (iv) the failure to find suitable acquisitions, integrate completed acquisitions, or grow organically, and risks associated with joint ventures and franchise ownership and operations; (v) the impact of general economic, financial market and political conditions, including unfavorable conditions in the capital and credit markets and in the markets in which we operate, including as a result of COVID-19; (vi) risks related to our international operations, including the United Kingdom's withdrawal from the European Union, or fluctuations in exchange rates; (vii) the impact of catastrophic and non-catastrophe losses, including as a result of climate change; (viii) our inability to recover should we experience a business continuity event, including as a result of COVID-19; (ix) our inability to develop and maintain distribution sources or attract and retain sales representatives and executives with key client relationships; (x) the failure to manage vendors and other third parties on whom we rely to conduct business and provide services to our clients; (xi) declines in the value of mobile devices, the risk of guaranteed buybacks or export compliance risk in our mobile business; (xii) negative publicity relating to our products and services or the markets in which we operate; (xiii) the failure to implement our strategy and to attract and retain key personnel, including senior management; (xiv) employee misconduct; (xv) the adequacy of reserves established for claims and our inability to accurately predict and price for claims; (xvi) a decline in financial strength ratings or corporate senior debt ratings; (xvii) an impairment of goodwill or other intangible assets; (xviii) the failure to maintain effective internal control over financial reporting; (xix) a decrease in the value of our investment portfolio, including due to market, credit and liquidity risks, changes in interest rates and COVID-19; (xx) the impact of U.S. tax reform legislation and impairment of deferred tax assets; (xxi) the unavailability or inadequacy of reinsurance coverage and the credit risk of reinsurers, including those to whom we have sold business through reinsurance; (xxii) the credit risk of some of our agents, third-party administrators and clients;

the inability of our subsidiaries to pay sufficient dividends to the holding company and limitations on our ability to declare and pay dividends, including as a result of COVID- 19; (xxiv) changes in the method for determining LIBOR or the replacement of LIBOR; (xxv) the failure to effectively maintain and modernize our information technology systems and infrastructure, or the failure to integrate those of acquired businesses; (xxvi) breaches of our information systems or those of third parties with whom we do business, or the failure to protect data in such systems, including due to cyber-attacks and as a result of working remotely during the COVID-19 pandemic; (xxvii) the costs of complying with, or the failure to comply with, extensive laws and regulations to which we are subject, including those related to privacy, data security and data protection; (xxviii) the impact from litigation and regulatory actions, including those arising from COVID-19; (xxix) reductions or deferrals in the insurance premiums we charge, including as a result of COVID-19; and

changes in insurance and other regulation, including to mitigate the impact of COVID-19.

For additional information on factors that could affect our actual results, please refer to the factors identified in the reports we file with the U.S. Securities and Exchange Commission (the "SEC"), including but not limited to the risk factors identified in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, each as filed with the SEC.

Exhibit 2: Non-GAAP Financial Measures

Assurant uses the following non-GAAP financial measures to analyze the company's operating performance. Because Assurant's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing Assurant's non-GAAP financial measures to those of other companies.

Net operating income equals net income attributable to common stockholders, excluding the Global Preneed goodwill impairment, net realized gains (losses) on investments (which includes unrealized gains (losses) on equity securities and changes in fair value of direct investments in collateralized loan obligations), COVID-19 direct and incremental expenses, the CARES Act tax benefit, foreign exchange gains (losses) from remeasurement of monetary assets and liabilities, the net charge related to Iké, as well as other highly variable or unusual items other than reportable catastrophes. Net operating income, excluding reportable catastrophes, excludes reportable catastrophes, which represent catastrophe losses net of reinsurance and client profit sharing adjustments and including reinstatement and other premiums. The company believes net operating income, excluding reportable catastrophes, provides investors a valuable measure of the performance of the company's ongoing business because it excludes items that do not represent the ongoing operations of the company and because it excludes reportable catastrophes, which can be volatile. The comparable GAAP measure is net income attributable to common stockholders.

(1) Global Lifestyle excludes reportable catastrophes. Additional details are included in the Financial Supplement.

Additional details about the components of Other adjustments and other key financial metrics are included in the Financial Supplement located on Assurant's Investor Relations website http://ir.assurant.com/investor/default.aspx

Exhibit 2: Non-GAAP Financial Measures (Continued)

(1) Global Lifestyle excludes reportable catastrophes. Additional details are included in the Financial Supplement.

Exhibit 2: Non-GAAP Financial Measures (Continued)

Assurant uses net operating income per diluted share, excluding reportable catastrophes, as another important measure of the company's stockholder value. Net operating income per diluted share equals net operating income (defined in prior slide) divided by weighted average diluted shares outstanding, excluding any dilutive effect from the assumed conversion of the mandatory convertible preferred stock prior to the acquisition date. The company believes this metric provides investors a valuable measure of stockholder value because it excludes items that do not represent the ongoing operations of the company. In addition, it excludes the effect of the mandatory convertible preferred stock, which was used to finance the TWG acquisition, prior to the acquisition date. The comparable GAAP measure is net income attributable to common stockholders per diluted share, defined as net income attributable to common stockholders plus any dilutive preferred stock dividends divided by weighted average diluted shares outstanding.

Exhibit 2: Non-GAAP Financial Measures (Continued)

Corporate and Other net operating loss equals Corporate and Other segment net loss attributable to common stockholders, excluding the Global Preneed goodwill impairment, interest expense, net realized gains (losses) on investments (which includes unrealized gains (losses) on equity securities and changes in fair value of direct investments in collateralized loan obligations), COVID-19 direct and incremental expenses, the CARES Act tax benefit, foreign exchange gains (losses) from remeasurement of monetary assets and liabilities, the net charge related to Iké, as well as other highly variable or unusual items other than reportable catastrophes. The company believes Corporate and Other net operating loss provides investors a valuable measure of the performance of the company's corporate segment because it excludes highly variable items that do not represent the ongoing results of the company's corporate segment. The comparable GAAP measure is Corporate and
Other segment net loss attributable to common stockholders.

Exhibit 3: Data Sources

Global Housing

7 of the top 10 largest mortgage servicers in the U.S.

8 of the top 10 largest multifamily housing PMCs in the U.S.

Source: Internal Management

information

Source: 2020 NMHC 50 Largest Apartment Managers

Global Lifestyle

8 of the top 10 global auto manufacturers

4 of the top 5 global connected living brands

Source: 2020 Best Global Brands

by Interbrand

Source: 2020 Best Global Brands

by Interbrand

Multifamily housing market represents renter-occupied housing units as sourced by U.S. Census data with renters insurance penetration and premium growth estimates according to the Insurance Information Institute.

Mobile (in Connected Living) market represents global smartphone shipments as sourced by IDC data.

Automotive market represents global new and used auto sales as sourced from BMI Research, NADA and Mannheim.

Global Preneed

The largest funeral home and	Source: Internal Management
cemetery service provider in	information
the U.S. & Canada

Note: All data listed as of September 30, 2020, unless otherwise noted.

Attachments

Original document
Permalink

Disclaimer

Assurant Inc. published this content on 10 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2020 10:24:01 UTC

Market Closed - Nyse Other stock markets 04:00:02 2024-05-08 pm EDT			5-day change	1st Jan Change
176.5 ^USD	-1.14%		+1.08%	+4.78%

May. 08	Transcript : Assurant, Inc., Q1 2024 Earnings Call, May 08, 2024
May. 08	Assurant's first-quarter profit doubles on higher premiums, investment income	RE

Transcript : Assurant, Inc., Q1 2024 Earnings Call, May 08, 2024	May. 08
Assurant's first-quarter profit doubles on higher premiums, investment income	May. 07	RE
Assurant Q1 Adjusted Earnings, Revenue Increases	May. 07	MT
Earnings Flash (AIZ) ASSURANT Reports Q1 EPS $4.78, vs. Street Est of $3.92	May. 07	MT
Earnings Flash (AIZ) ASSURANT Posts Q1 Revenue $2.88B, vs. Street Est of $2.821B	May. 07	MT
Assurant, Inc. Reports Earnings Results for the First Quarter Ended March 31, 2024	May. 07	CI
Assurant, Inc. Announces Device Trade-In Service for Lloyds Banking Group	Apr. 18	CI
Piper Sandler Raises Price Target on Assurant to $205 From $195, Maintains Overweight Rating	Apr. 05	MT
Mr. Robert W. Stein and Mr. Juan N. Cento Not to Stand for Re-Election as Board Members of Assurant, Inc	Apr. 04	CI
Sector Update: Financial Stocks Gain Pre-Bell Thursday	Apr. 04	MT
Assurant Acquires UK Mobile Device Repair Company iSmash	Apr. 04	MT
Assurant, Inc. acquired Ismash Limited.	Apr. 03	CI
Which Powell will we get?	Mar. 20
UBS Adjusts Assurant Price Target to $205 From $191, Maintains Buy Rating	Feb. 12	MT
Keefe Bruyette & Woods Downgrades Assurant to Market Perform From Outperform, Adjusts PT to $182 From $170	Feb. 12	MT
Transcript : Assurant, Inc., Q4 2023 Earnings Call, Feb 07, 2024	Feb. 07
Assurant tops profit estimates on global housing unit strength	Feb. 06	RE
Assurant Q4 Adjusted Earnings, Revenue Rise	Feb. 06	MT
Earnings Flash (AIZ) ASSURANT Reports Q4 Revenue $2.98B, vs. Street Est of $2.80B	Feb. 06	MT
Earnings Flash (AIZ) ASSURANT Reports Q4 EPS $4.58, vs. Street Est of $3.71	Feb. 06	MT
Tranche Update on Assurant, Inc.'s Equity Buyback Plan announced on May 13, 2021.	Feb. 06	CI
Tranche Update on Assurant, Inc.'s Equity Buyback Plan announced on November 9, 2023.	Feb. 06	CI
Assurant, Inc. Reports Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2023	Feb. 06	CI
Is China's stock market ready for a bullish phase?	Jan. 24
ANALYST RECOMMENDATIONS : Accenture, AMD, Easyjet, Fortinet, Netflix...	Jan. 24

	1st Jan change	Capi.
ASSURANT, INC.	+4.78%	9.3B
ALLIANZ SE	+13.08%	114B
CHUBB LIMITED	+11.34%	102B
MARSH & MCLENNAN COMPANIES	+7.45%	100B
HARTFORD FINANCIAL SERVICES GROUP (THE), INC.	+24.01%	29.38B
TALANX AG	+6.26%	19.95B
BB SEGURIDADE PARTICIPAÇÕES S.A.	-3.06%	12.75B
POWSZECHNY ZAKLAD UBEZPIECZE? SPÓLKA AKCYJNA	+12.97%	11.5B
ASR NEDERLAND N.V.	+12.69%	10.9B
ICICI LOMBARD GENERAL INSURANCE COMPANY LIMITED	+21.29%	9.95B

Repurchases