Delivered on 2021 Financial Objectives Through Double-Digit Earnings Growth Led by Global Lifestyle and Significant Capital Return

Expects 8 to 10 percent Growth in Adjusted EBITDA, Ex. Catastrophes, in 2022

Assurant, Inc. (NYSE: AIZ), a leading global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases, today reported results for the fourth quarter ended December 31, 2021.

“In 2021, we delivered our fifth consecutive year of profitable growth with double-digit growth in earnings and earnings per share,” said Assurant President and CEO Keith Demmings. “We also significantly enhanced our value proposition to our clients and their customers, while continuing to innovate to become the leading service provider for consumers’ connected lifestyles.”

“For 2022, our key priorities to support our long-term vision and strategy include developing our diverse talent, strengthening our client partnerships while attracting key prospects globally, and further enhancing our product and service capabilities that differentiate Assurant in the marketplace. This will require an accelerated pace of innovation and prioritizing investments across our operations and technology to advance our market leading positions. And finally, sustainability and inclusivity will continue to be a top priority for the benefit of all stakeholders and the communities in which we operate,” Demmings added.

Full-Year 2021 Summary:

• Net income increased 18 percent versus prior year period, while net income per diluted share increased 24 percent
• Net operating income, excluding reportable catastrophes³, up 11 percent to $672.0 million
• Net operating income, excluding reportable catastrophes, per diluted share⁴, up 14 percent to $11.26
• Adjusted EBITDA, excluding reportable catastrophes⁵, increased 9 percent to $1.11 billion
• Holding company liquidity was $1.05 billion, reflecting the Global Preneed sale proceeds
• Share repurchases and common stock dividends totaled $1.0 billion

2022 Outlook

• In 2022, the company expects 8 to 10 percent growth in Adjusted EBITDA, excluding reportable catastrophes⁶, driven by expansion across Global Lifestyle and Global Housing
  
  
  
  Note: References to net income, including in net income per diluted share, throughout this press release refer to net income from continuing operations. Metrics listed above other than net income and net income per diluted share are non-GAAP measures of performance. A full reconciliation of each non-GAAP measure to the most comparable GAAP measure can be found in the Non-GAAP Financial Measures section beginning on page 11.

Fourth Quarter and Full-Year 2021 Consolidated Results

Note: Some of the metrics above are non-GAAP measures of performance. A full reconciliation of each non-GAAP measure to the most comparable GAAP measure can be found in the Non-GAAP Financial Measures section beginning on page 11. Additional details regarding key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website: https://ir.assurant.com/investor/default.aspx

Fourth Quarter 2021 Consolidated Results

• Net income was $126.7 million, or $2.20 per diluted share, compared to fourth quarter 2020 net income of $119.1 million, or $1.91 per diluted share. The increase was primarily driven by $26.1 million of lower reportable catastrophes within Global Housing and growth in Global Lifestyle, partially offset by lower net realized gains on investments compared to the prior year period.

• Net operating income¹ totaled $142.8 million, or $2.47 per diluted share², compared to fourth quarter 2020 net operating income of $96.6 million, or $1.62 per diluted share. Assurant incurred $1.2 million of reportable catastrophes in fourth quarter 2021, compared to $27.3 million in fourth quarter 2020. Excluding reportable catastrophes, net operating income³ for fourth quarter 2021 increased 16 percent to $144.0 million compared to $123.9 million in the prior year period, which was mainly the result of Global Lifestyle growth from continued expansion in Global Automotive and Connected Living and the absence of preferred dividends. This was partially offset by lower earnings in Global Housing from a decline in specialty products.
  
  
  
  Adjusted EBITDA, excluding reportable catastrophes⁵, increased 8 percent compared to the prior year period, less than the increase in net operating income, excluding reportable catastrophes, primarily due to a modestly lower tax rate in the quarter and preferred stock dividends in the prior year period, which are excluded from Adjusted EBITDA

• Revenue from the Global Lifestyle and Global Housing segments totaled $2.49 billion compared to $2.31 billion in fourth quarter 2020, up 8 percent, primarily due to growth in Global Automotive and higher mobile fee income in Connected Living within Global Lifestyle.
  
  
  
  Note: Throughout this press release, revenue refers to net earned premiums, fees and other income. GAAP revenue is equal to net earned premiums, fees and other income, net investment income and net realized gains (losses) on investments.

Full-Year 2021 Consolidated Results

• Net income was $613.5 million, or $10.20 per diluted share, compared to full-year 2020 net income of $520.4 million, or $8.22 per diluted share. The increase was primarily driven by higher net realized gains on investments, including $67.5 million of fair value changes in unrealized equity positions within Assurant Ventures for companies that went public in 2021, compared to net losses in the prior year period, as well as growth in Global Lifestyle. This was partially offset by the absence of a one-time tax benefit in first quarter 2020.

• Net operating income¹ totaled $557.9 million, or $9.36 per diluted share², compared to full-year 2020 net operating income of $468.2 million, or $7.71 per diluted share. Assurant incurred $23.1 million fewer reportable catastrophes in 2021 compared to the prior year. Excluding reportable catastrophes, net operating income³ for 2021 increased 11 percent to $672.0 million compared to $605.4 million in the prior year period, which was mainly the result of growth across all lines of business within Global Lifestyle, a lower Corporate and Other loss and the absence of preferred dividends, partially offset by lower results in Global Housing.

• Adjusted EBITDA, excluding reportable catastrophes⁵, increased 9 percent compared to the prior year period, less than the increase in net operating income, excluding reportable catastrophes, primarily due to a modestly lower tax rate and preferred stock dividends, which are excluded from Adjusted EBITDA.

• Revenue from the Global Lifestyle and Global Housing segments totaled $9.74 billion compared to $9.31 billion in fourth quarter 2020, up 5 percent. This was primarily driven by strong growth in Global Automotive within Global Lifestyle.

Global Lifestyle

Note: Throughout this press release, references to Adjusted EBITDA within Global Lifestyle exclude reportable catastrophes.

• Net operating income⁷ increased in fourth quarter 2021 compared to the prior year period, primarily due to growth in Global Automotive and mobile within Connected Living. The increase in Global Automotive was mainly from underlying growth from prior period sales across all distribution channels and favorable loss experience in select ancillary products. Mobile growth was driven by strong trade-in volumes, including HYLA Mobile, and improved performance in Europe and Asia Pacific. Results were partially offset by in-store mobile service and repair capability investments.
  
  
  
  Full-year 2021 net operating income⁷ increased compared to 2020, primarily driven by significant growth in Global Automotive, continued expansion in mobile within Connected Living, and greater contributions from Global Financial Services. Global Automotive results included underlying growth from prior period sales driven by expanded and new client relationships globally, favorable loss experience in select ancillary products and $8.2 million of one-time benefits that occurred in first half 2021 that are not expected to repeat. Mobile growth was primarily driven by the same factors noted for fourth quarter 2021.

• Adjusted EBITDA⁵ increased compared to fourth quarter 2020, less than the increase in net operating income, primarily due to a modestly lower tax rate in the quarter which is excluded from Adjusted EBITDA.
  
  
  
  Full-year 2021 Adjusted EBITDA⁵ increased compared to 2020, greater than the increase in net operating income, which reflects higher amortization of purchased intangible assets from mobile- and auto-related acquisitions and an increase in depreciation expense related to information technology initiatives.

• Revenue increased in fourth quarter 2021 compared to the prior year period, primarily due to continued growth in Global Automotive from strong prior period sales and further expansion in Connected Living, including strong fee income growth in mobile from higher trade-in volumes, as well as domestic subscriber growth, which was partially offset by runoff mobile programs.
  
  
  
  Full-year 2021 revenue increased compared to 2020, primarily driven by Global Automotive from strong sales across the U.S., as well as growth in Connected Living from extended service contracts. In mobile, higher trade-in volumes and subscriber growth were offset by declines from runoff programs and the $176 million reduction from the previously disclosed program contract change.

Global Housing

• Net operating income⁷ increased in fourth quarter 2021 compared to the prior year period. Fourth quarter 2021 included $1.0 million of reportable catastrophes compared to $27.3 million of reportable catastrophes in fourth quarter 2020.
  
  
  
  Excluding reportable catastrophes, net operating income decreased, due to higher non-catastrophe loss experience including an $8.2 million year-over-year increase within small commercial that was primarily related to reserve strengthening for run-off claims. This was partially offset by an increase in lender-placed, primarily from higher average insured values and lower expenses.
  
  
  
  Full-year 2021 net operating income⁷ increased compared to 2020. Full-year 2021 included $113.9 million of reportable catastrophes, compared to $137.2 million in 2020. Excluding reportable catastrophes, net operating income decreased primarily due to higher non-catastrophe loss experience from an anticipated increase to more normalized levels, as well as a $12.3 million year-over-year increase within small commercial that was primarily related to reserve strengthening for run-off claims. The decrease was partially offset by higher premium rates and average insured values in lender-placed.

• Revenue increased modestly year-over-year, mainly from growth in lender-placed and Multifamily Housing. This was partially offset by a decline in specialty products from client runoff.
  
  
  
  Full-year 2021 revenue increased modestly compared to 2020, primarily driven by growth in Multifamily Housing across affinity and PMC channels as well as lender-placed. The increase was partially offset by declines in specialty products from client runoff.

Corporate and Other

• Segment net loss increased in fourth quarter 2021 compared to the prior year period loss due to lower net realized gains on investments and the absence of income from recoveries of legacy Affordable Care Act receivables.
  
  
  
  For full-year 2021, segment net loss decreased compared to 2020, primarily due to higher net realized gains on investments compared to net losses in the prior year, partially offset by the absence of a one-time tax benefit in first quarter 2020.

• Net operating loss⁸ decreased in fourth quarter 2021 compared to the prior year period, primarily driven by an increase in investment income from higher asset balances.
  
  
  
  For full-year 2021, net operating loss⁸ decreased compared to 2020, primarily due to lower expenses, including employee-related and third-party expenses, in addition to savings from reduced real estate costs, and higher investment income.

Holding Company Liquidity Position

• Holding company liquidity totaled $1.05 billion as of December 31, 2021, or $827 million above the company’s current targeted minimum level of $225 million, primarily reflecting the remaining proceeds from the sale of Global Preneed.
  
  
  
  Dividends paid by operating segments to the holding company in fourth quarter 2021 totaled $176 million. For full-year 2021, dividends paid to the holding company totaled $729 million, equal to approximately one hundred percent of segment earnings.

• Share repurchases and common stock dividends totaled $329 million in fourth quarter 2021. During fourth quarter 2021, Assurant repurchased 1.8 million shares of common stock for $290 million and paid $39 million in common stock dividends. From January 1 through February 4, 2022, the company repurchased an additional 526 thousand shares for approximately $80 million, with $762 million remaining under the current repurchase authorization.
  
  
  
  For full-year 2021, share repurchases and common and preferred dividends totaled $1.0 billion. Assurant repurchased 5.3 million shares of common stock for $844 million and paid dividends to shareholders totaling $163 million, including $158 million in common stock dividends and $5 million in preferred stock dividends, all of which converted to common stock in March 2021.

2022 Company Outlook⁶

Given its ongoing shift to more service-oriented, fee-based businesses, the company believes Adjusted EBITDA, excluding reportable catastrophes, is a better representation of the company’s operating performance as compared to net operating income. As a result, the company will use Adjusted EBITDA, excluding reportable catastrophes, as its performance metric for the enterprise and its reportable segments going forward and will no longer report net operating income and other related non-GAAP metrics beginning in first quarter 2022.

The company expects to provide full-year 2022 outlook on a per share basis, along with its long-term financial objectives, at its Investor Day on March 24, 2022. In the interim, the company expects:

Note: Some of the metrics above are non-GAAP measures of performance. A full reconciliation of each non-GAAP measure to the most comparable GAAP measure can be found in the Non-GAAP Financial Measures section beginning on page 10. Additional details regarding key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website: https://ir.assurant.com/investor/default.aspx

• For full-year 2022, Adjusted EBITDA, excluding reportable catastrophes, to grow 8 to 10 percent, driven by growth across Global Lifestyle and Global Housing. Global Lifestyle Adjusted EBITDA is expected to increase by low double-digits, driven mainly by mobile in Connected Living from global expansion in existing and new clients across device protection and trade-in and upgrade programs. This will be partially offset by strategic investments to support new business opportunities including in-store mobile service and repair capabilities. Global Housing Adjusted EBITDA, excluding reportable catastrophes, is expected to increase by mid- to high-single-digits, primarily from growth in lender-placed from higher average insured values, expense initiatives and improved results in Specialty and Other. Corporate and Other Adjusted EBITDA loss is expected to be approximately $105.0 million, reflecting lower net investment income as compared to 2021. Assurant’s consolidated effective tax rate is expected to be approximately 23 to 25 percent.

• Business segment dividends to approximate three quarters of segment Adjusted EBITDA, including reportable catastrophes, which represents roughly the same historical conversion levels to the holding company. This is subject to the growth of the businesses, rating agency and regulatory capital requirements, investment portfolio performance and a potential increase in U.S. corporate tax rates.

• Capital to be deployed to support business growth by funding investments and M&A and return capital to shareholders in the form of share repurchases and dividends, subject to Board approval and market conditions.

Earnings Conference Call

The fourth quarter 2021 earnings conference call and webcast will be held Wednesday, February 9, 2022 at 8:00 a.m. ET. The live and archived webcast, along with supplemental information, will be available on Assurant’s Investor Relations website: https://ir.assurant.com/investor/default.aspx

About Assurant

Assurant, Inc. (NYSE: AIZ) is a leading global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases. Anticipating the evolving needs of consumers, Assurant partners with the world’s leading brands to develop innovative products and services and to deliver an enhanced customer experience. A Fortune 300 company with a presence in 21 countries, Assurant offers mobile device solutions; extended service contracts; vehicle protection services; renters insurance; lender-placed insurance products; and other specialty products. The Assurant Foundation strengthens communities by supporting charitable partners that help protect where people live and can thrive, connect with local resources, inspire inclusion and prepare leaders of the future.

Learn more at assurant.com or on Twitter @Assurant.

Safe Harbor Statement

Some of the statements included in this news release and its exhibits, including our business and financial 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.

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 news release 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:

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.

Non-GAAP Financial Measures

Assurant uses the following non-GAAP financial measures to analyze the company’s operating performance. Assurant’s non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. 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.

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