AIZ - Earnings call transcript Q2 2022

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Operator

Welcome to Assurant's Second Quarter 2022 Conference Call and Webcast. [Operator Instructions]. It is now my pleasure to turn the floor over to Suzanne Shepherd, Senior Vice President of Investor Relations and Sustainability.

You may begin.

Suzanne Shepherd

Thank you, operator, and good morning, everyone. discussing quarter to you results forward today. look our XXXX second with We

Assurant's Keith second supplement Chief assurant.com. call and me our corresponding we conference Joining for financial release news are XXXX. after market Officer; announcing The Richard issued and a Yesterday for Chief and on Demmings, of Dziadzio, are Officer. our the available Financial results the closed, quarter Executive President our release

into a will and moving We today's Richard remarks call session. Keith from Q&A start with before

Some forward-looking. of today are the statements made

statements based expectations statements. these cause from uncertainties factors Forward-looking are performance materially upon and by may and and our current that actual historical differ contemplated risks, results to subject to those other

well as our regarding reports. in factors Additional found information in as these SEC be can yesterday's release earnings

financial we we performance. call, will which important evaluating non-GAAP to refer the measures, in today's company's are believe During

measures, details can a two, of the on more measures and GAAP supplement For to release and these our most website. reconciliation found news on financial refer the please comparable yesterday's be that

we of businesses benefits fully, errors our within and legacy all XXXX quarterly quarter correction full long-duration expect XXXX exclude the for reconciliation our as quarter related turn year revised and calculation full certain I in revised businesses A over Global in results exit adjusted supplement annual and performance measures first been claims and sharing to insurance key certain to to of Lifestyle. or that metrics period. the will for immaterial these small revised XXXX to the any material that first corrections. to EBITDA aggregate, to economy financial posted through well as the other and is including occurred as now commercial the for policies Housing reflect second is any reinsurance the call Global in assurant.com. in periods as certain Results segment have have change not now individually late quarter Keith. provided payable of within The and changes on impact of through reported Global well prior Lifestyle of results We XXXX

Keith Demmings

good Thanks, everyone. Suzanne, and morning,

our Investor aspire to leading world. company advancement we As supporting of be Day recent in connected the the outlined services business we during global the March,

expected And progress shareholders. XXXX, the EPS half had $XXX very and both of benefit strong vision a we've adjusted made importantly, last up in so on losses. first EBITDA auto. was We such catastrophe and reportable their year, and half of that excluding delivered our far mobile led Global XX% that year million, the our delivering with our solid of adjusted Lifestyle employees of for the We're by customers, pleased momentum first in both and $X.XX, continue, clients to

this add ex-cat far capital-light Our adjusted represented XX% year based income to fee and EBITDA of of value franchise. and our so continue the to our businesses

macro relative is While key results believe flow remains what hedge broader businesses earnings have pressures broader address inflationary we to seen driven near-term across underway several in and actions term, we Global Housing were that industry, clear by path below a challenges. to expectations, continue our Longer volatile deliver positioned portfolio cash to growth landscape. a housing combined our of economic and countercyclical in to also and while strong generation compelling a lifestyle attractive providing market, the largely

and generated Lifestyle EBITDA adjusted we offerings XX% As our services-oriented our of look Global year-to-date. at business year-over-year growth segment, XX%

our operator the partnership includes support. premium the brands a multiyear market-leading a several market. with technical comprehensive expand device mobile signed trade-in in we cable lifestyle U.S., within world-class renewal large our protection, This business. us Our and helped franchise with In recently

operators value-added services lead customer two now to business in relationships new experience. our with demonstrating capabilities, U.S. into broadening to a support momentum second within ability grow we cable major We've subscriber also their will including With in while Lifestyle, We're half the growing continue growth renewal, with we'll product ultimately which year, renewed bases. our expect better that the the mobile be Global last mobile offerings continued of pleased to the our XXXX.

we teens mainly growth high trade-in auto segment from result, as the adjusted will of mobile strength deliver and believe strong including mid- a from well protection continued As the to EBITDA, business. device as results, in our

were most lender-placed. claim to in be to higher the Similar Global mitigated severities costs These in in which are over higher rate and Housing. by quarter, significant Turning reinsurance to impacted time. resulted notably others in industry, pressure, inflationary costs expected through adjustments we the

our and product renewals. labor rate policy feature next over This inflation regular changes be will key We costs. to to to increase filings in lender-placed In guard recently address includes increase on renewals designed all the rate an rate applied implemented double-digit months. XX states, material addition in a

normalize result, a magnifying the believe that through as time. earn in premiums experience loss ultimately a quarter results As higher non-cat there timing will XXXX. We lag is incremental is the over pressuring this and

at actions for portfolio, strategic look where success. have back a develop also exit want taking deliver align to not Stepping our opportunities we housing As that sharing see the more and attractive at returns. to overall, decided financial as are to businesses win. we believe businesses, positions market greater anticipated, driving right have improve attractive closely and we of recently, portfolio clear housing we we and efficiencies vision where looking path long-term we advantages Assurant to can did focus we for the an financial focus which and originally that a market-leading business we other expense on long-term Most ongoing through with poised economy business. market-leading on the to The this objectives profitability even we're and to

view share environment, growth including Adjusted supported also cats, return the this full expected of million is $XXX reflecting was completed sale of to XX% expected momentum which proceeds, share, adjusted believe we EPS of within course, the in be of can XX% adjusted Global stronger X% year, takes will, X%. but EBITDA. into and macro to repurchases, by per grow in EBITDA pre-need current Lifestyle. growth to This the second results the losses also we deliver quarter. excluding for Given housing, earnings higher in now account reportable

shown market to well we've term. various historically positioned As long we believe our are the deliver objectives cycles, through over strategic we

macroeconomic be this execute outlined XXXX period Day. will we model Over our no to we and of resiliency business expect challenges time, enabling XXXX different. strength to us We Investor objectives the believe at of and on the endure,

adjusted EBITDA starting Looking year. forward, next expect we acceleration

the may the over to now turn I'll While deliver to relative the and call portfolio to second remain cash in be confident we review long XXXX lifestyle returns results will the housing growth, shareholder superior strong in flow revised broader and greater and continue the to linear, business our path market. that combined term, detail. our not earnings outlook Richard generation quarter attractive

Richard Dziadzio

XXXX. you, million, Thank quarter $XXX down the Keith, of catastrophes, good totaled from and morning, Adjusted EBITDA, X% second everyone. excluding

As Keith mentioned, reflected global growth lifestyle in performance results across the and weaker Housing. strong Global

the to per earnings to reflect catastrophes, from our XXXX quarter, flat noncore period. results. prior For excluding $X.XX, Suzanne adjusted and the noted the operations accounting updated and EBITDA The remove year share reported we correction, has baseline prior of housing lifestyle been reportable period adjusted for

Connected across partially or This of select and results, Global was $XX protection XX% contributed by the was segment EBITDA to from driven products favorable by of and in let's Living Connected subscriber million including $XXX quarter, Lifestyle. higher Automotive. the cable earnings offset adjusted million higher or a by $XX segment Global operator estate In Now both primarily continued increased by second and exchange. also in increase Living starting primarily ancillary XX%, yields, growth to and programs mobile loss America XX% investment million more The in Automotive, The and device year-over-year. results. reported increased including from experience real experience. growth move year-over-year carrier Global income, unfavorable foreign driven loss expansion clients, gains increase favorable North earnings

phone we our Lifestyle reflecting Automotive the by auto revenue Global contracts. the of X%, slightly devices from headwinds. million. the Connected second of was This strong quarter, to Living, signs service premiums by at to runoff to and the driven XX% due the net the revenue second revenue from down As higher from supported was carrier XG even volumes, premium growth was This million service written lower adoption of foreign X%, introductions offset $X.X vehicle revenue showing devices. period by programs declines trading in global U.S. sales strong mobile Automotive. of continued quarter unfavorable serviced. remained overall market by additional mobile North increased and partially fee devices slowing, mobile, subscribers in America and dealerships in prior million Within in mobile approximately strong In up attachment and Global increased by global $XX was offsetting or driven $X.X Despite exchange. market look or of are revenue, number XXXX, as mainly due promotions growth growing record against rates higher new income by

mobile previously also sequentially. of programs mentioned, devices runoff subscribers, mobile which was terms partially declines growth North in mobile offset in by In protected America impacted

XXXX, estate more $XX than investments for $XXX in select to are adjusted impacts, EBITDA higher is be real across now high programs. we new year. to products. lower and Auto trade-in of global existing million from be loss to But partially clients gains. partially ancillary year in business This million. for implementations. expected experience investment half, upgrade growth in teens full and expansion absence full mainly year will the For growth expect protection Mobile to adjusted baseline offset the be lifestyle EBITDA exchange to is due be unfavorable opportunities half XXXX of and and income Growth the by key grow the be support expected new expected EBITDA of first and strategic adjusted driver of and the the to to by for device favorable compared mid- second offset client foreign will earnings to

which Moving Adjusted $XX Housing. $XX was million, Global million for of the to catastrophes included quarter. reportable second EBITDA

reinsurance primarily to per our year-over-year earnings million the and in of both in June, in of $XX This market higher reserve mainly XX $XX we within relationships was our increased with higher included event we loss earnings losses, experience, catastrophe Housing. maintained costs. Excluding the market. reflected our higher non-cat XXXX fire and strengthening reinsurance second including from relatively And reinsurance the and program retention events. We largely strong million reinsurance higher The our a pricing program in extent, reduction fared than an catastrophe quarter. in lesser and driven catastrophe completion cost million, of believe million third losses $XX given more the the with exposures driven well the million Multifamily by in partners. balance in $XX $XX The reinsurance decreased lender-placed

ongoing capabilities costs covering losses Housing and coverage higher of and a multi-event flat higher Global our multiyear We also Multifamily In protection. values our non-cat from our offset was of lender XX% catastrophe strengthen by to from offset growth continued experience. that benefit investments placed. channels further provides in and the client year-over-year expand placement Housing, expenses by and insured cascading feature program P&C our reinsurance revenue average as to was were increased

the full from we mid-teens to baseline Housing now excluding million. to adjusted $XXX Global For cats, expect EBITDA, of low the year, XXXX by decline

In addition placement from time, than to system are claims in continue the new softer expense realize and At we have rate enhancements capabilities. be costs, REO and higher digital to same continued originally strength efficiencies seeing the expected. to muted we are volumes trends

second fluid, expenses. and XXXX. the compared million rate as and guards This through duration remain adjusted and magnitude premiums year. million, by trends driven EBITDA up exit expected the higher $X corporate, are we to quarter loss At the $XX of to was While flow filings start inflationary low technology of to mainly was unusually inflation employee-related

For corporate expect loss full EBITDA $XXX year be adjusted approximately million. XXXX, we the to

$XXX the with our dividends ended segments In holding current above our from $XXX million the million, to target We liquidity. second totaled quarter, operating minimum Turning company level. second million. quarter $XXX

our of to $XX main also million $XX expenses, million dividends. items: notes; share the million outflows from our we had three $XXX quarterly of addition interest corporate XXXX from and stock and in common In repayment repurchases;

Through outlook year, shares bought of million. For our worth $XXX $XXX our assumes we've stock. premium additional million July, the million sale proceeds of from $XXX plus full repurchased the million back an remaining $XXX to

catastrophes. moderately operations adjustments, adjusted be portfolio of roughly and for expect Given including dividend X/X strengthening we noncore values, target of to investment changes in segment accounting below our segment EBITDA, reserve

model lower, to strong While capital product be business we still generation and mix. our expect given

long-term we that, As call growth In the Global and well-positioned conclusion, always, segment the Global requirements subject growth believe Lifestyle dividends businesses. and are performance. portfolio Housing open regulatory operator, generation, agency businesses, please and the and And underscored investment of with is to portfolio strong Assurant for for questions. by capital rating of attractive capital the

Operator

Instructions]. [Operator

from Your Morgan comes of first question from line Stanley. Michael Phillips the

Michael Phillips

inflationary that you're not talk retain either to guess seeing Auto on how you we but I that want seeing ability about inflationary clearly side. And switch from anything I maybe It's the lifestyle XXX%. So might to that can can you're lender-placed, much to talk there And anything that? over the combat on that risk pressures cause of on seeing that Mobile, the so, or there on you side? you're kind if your But pressures there? pressure

Keith Demmings

Yes. Terrific.

raised business outlook performed So for think the year. the has the Lifestyle I year. this well We've full obviously very

also couple the you the last Connected certainly Auto of but terms the the in a So particularly Living years around pandemic, couple the chain on we're the of constraints about of resiliency, dealing confident we've things, in say been side. pressures, would with both supply inflationary as parts, and think I momentum. of

So that deal I the nature perform our programs think services the manage. not structures we relative of is the we're time favorable. we X/X holding the to risk the quite and of

ratios, even very I'd we allowable say we're in fees. income, to loss typically got risk, been got orientation ability We've that's we've helpful. a reprice. stronger to So targeting deals fee retain where

hasn't timing course losses inflation time a about in but that. good think different and an over last little a are number the you the But operating in filings, really several very fully combat guard of the we then over of feel emerged see issues if inflation that on factors never it, model. side, will You housing insulated, certainly got that's place client are issue to And -- recover may We of being about we've deal occur structures. higher, that it put a with sometimes quarters. terms been rate

So lifestyle quite has been resilient that from perspective.

Michael Phillips

Okay.

comments side, that guard double-digit double was opening the top on mentioned on inflation about Was -- you lender-placed gaurd? the and Keith, on the that the Or that also Was -- renewals. mentioned, You then of in digit? guard? inflation on inflation the that is same

Keith Demmings

we July. about guard, put the in you -- if so double-digit think So inflation a rate increase

not filings severities actually approved been and have have So through end all year, and additional of set renews. book states, that course flow ongoing state an we've implemented, been sorry. all of filings. obviously, of with the fully then by higher got also by year, or rate been of We've it -- XX accelerating got to which is going as end regular next they're but this approved with will be discussions the as been states. have the this filings rate We've gotten losses year We've implemented And rate the higher.

relative on layers increase guard. double-digit rate of talked to we additional that So top the about that inflation

Michael Phillips

that filings like knowing maybe you talk difference are here, by those different. Is the traditional, difference you, rate your in state me other different than the company where a place in say, there clients have insurance you alluding a you're individuals homeowners and can little your clients that are any just about to,

give in than that the ability, company? can ability traditional speed higher and does the maybe or differences the speed take at So which them insurance the that rate to take you a any

Keith Demmings

Yes.

of couple a probably think things. I

policies, First they're short-tail policies. of are all, annual these

through one. period, flows it do rate, number we over as So get a XX-month

AIVs guard don't That I have get think built we year. an we've increases That's got already approved, factor we every corresponding into that to approval. to inflationary apply the just inflation up fact the and rate. and drives product,

inflation AIV. supports The call factor data industry would a normal I course. more inflation -- elevated. that driving is higher Obviously, that So

in consistently that rate, the the that say looking just the as the insurers of we're think marketplace. that in terms other aggressive been But at the justify really others experience seeing we as we've with getting. I'd terms states, severities work doing. very have, historical In be of what happens to that, I heightened increases we're And with would we're more like

huge volume. the on So rate. make impact to would looking it fair opportunity to get have returns doesn't business. a good say We're I on

exceptional higher see we we flowing our Obviously, counts So got policy, consistent policy move through. a even with in we've environment with inflationary as this lender-placed and to this rate more expect is relationships forward clients.

Michael Phillips

in best Congrats, luck and of the future.

Operator

from the comes question next Blair. of from Our line Jeff William Schmitt

Jeffrey Schmitt

recession on think you pretty placement let's view quickly? deeper could of a go? your the could above that say, or where move we're we a Or rates X% if is What up, one recession, lender-placed interest in could rate now if business the next where not, continue year sort that do to move move go into whether in

Keith Demmings

Yes.

think that mitigation of market, see that fact to relatively there's would of working got so delinquency as I And stable it I are so loan think placement just strength prevalence equity. say quarters, if rate I of the also the really servicers several to it's much the if significantly, limiting lot that that housing for shift and and positive loss any you foreclosure been a rates limiting really closely placement a level Obviously, the have a rise and range on about on that's probably depends rates on would factors. at volumes, of activity. and are you've tracking and delinquency are that there would modifications, delinquency, which our more starts REO starts that to efforts that's change rate. our X/X corresponding drive really pre-pandemic a of placement up impact foreclosures have Obviously, level.

upside economy of the that real the there's of question market. rate. is, the because time emerge over Housing strength The when So placement just does certainly in in

rising inflationary also hardening insurance a voluntary pressure, rate interest certainly, You've pressure. got higher market,

to the if obviously, our think a consumers longer-term big talk placement it feel. how see a a economy think in better respond We're as And from expectations. housing countercyclical happen, and increase not we that I on hedge about does a need rates that's where we responds being about to So get counting perspective. we how

Jeffrey Schmitt

Right.

sense. And That continues XX%. ratio then Housing in expense the Global Okay. makes above run to

in you the XX% of you've to kind inflation past, Or think could think some higher? below when driving sort do XX%. XX% to there I guided level? move that Is of that it

Keith Demmings

maybe, Yes. you And to about want talk do Richard, expenses?

Richard Dziadzio

little is the great to last It it's bit a a Yes, quarter XX%. up Yes. question. over

you're bit to think it. little right. we'd It's I see like a higher So than

-- are previous We talked we've in about calls.

as opening efficiencies, his in create We digitalization in said are projects investing more that, like Keith remarks.

we So through. business and say, first things Also, on come the that are the in as leverageable. very over the efforts volumes I that, rates the of would question have see time projects these these would placement grow, as we place our in operations obviously,

down expense time. So that bring ratio the would also over

Operator

Your comes KBW. McJoynt line of the next from from question Tommy

Tommy McJoynt

wind So what it's I meant operations from more breakeven? are forward? the be the of down? excluded the a And the going time for general expectations contribution that loss to noncore horizon know for Is that guidance. what's

Keith Demmings

Maybe can can and add Sure. start, I Richard on. then

So decision we to of sharing we quarter, as economy. liability around all talked the long-tail made and the decision driven business about, exit by this our

talked highly with we wasn't was company. to a didn't direction generate company. We the aligned with niche specialized headed think And returns. about, the didn't of it could aligned that wasn't we see inherent as direction path as a just we're financial strategically the strategically volatility. risk it and the So But business with We leadership.

So the have already as of that, notified. part been all clients of

time be earned of managing it just will net first 'XX, will gone will point, by And All runoff. quarter really by next I that contracts immaterial. the would the premium at year, this be non-renewed. completely, say, of the be

reserve. put you we up saw, As a

review emerge did business, behind of lot look scenario up us. think adequately to to full about very reserve try we did put runoff, time, over I to we this comprehensive the top-to-bottom how as put could is So and to cover of a the a a the appropriate of think which analysis performance exited this

Tommy McJoynt

kind you've those there. Okay. be of sellers way guess, of was just there businesses, of those you monetize guess, for any built been takers no with and as explored you I And of things, kind to And to to ways I just monetize wouldn't kind what have typically do sort what businesses? there

Keith Demmings

Yes.

rest have could distraction it I think through have didn't We growth looked it potentially, to that as a the really, path. driving viable. see organization. the And at a of focusing become could we on

factor a in for party. certainly through that than sharing look we've consider But that. to risk alternatives to possible, will there's say, of candidly. certainly process monetization, was We That's work around the structure now consider put see to that value something the lower we'll way third runoff and I it trying distraction with quite to would if a the

Operator

of Your Truist Hughes next Securities. the from Mark line question comes from

Mark Hughes

business happening What's flat of terms top line multifamily The in this there? of kind is quarter.

Keith Demmings

Yes.

a So couple things. of

retros First we of say business. well-positioned all, we're really I in got million X.X We've customers. like would the feel

opportunity leadership, in giving customer it's the So us a our deepening terms investing experience, We've market in expertise. great of scale. been

we expect being very It's in within have do long-term company channel. market. the terms would the of a So we flat, say results I do part management of growth attractive growth. property the in strength

of exceptionally we're more to into leveraging driving that rent a well. just rates, full CoverXXX better with our having tools, success collecting of continues part We're share. byflow. digital the talked attach the We've insurance lot and just integrated really So as about the grow product, capability. gaining We're our and

well. extremely going that's So

slowed we companies. where of our We growth with which the affinity business, insurance partner has have an portion

insurance less generally a and some with with dealing companies of partners. as little been getting think have I rate inflationary on our focusing marketing pressures,

that and as long-term focus we we to emerge this finds we do So But growth, future. continue business. will time seeing more of economy our the I part over the growth are think normalizes in stability think on as

Mark Hughes

there in anticipate progression money that And, helpful. the be of of bit in turnover little portfolio? do you what Richard, the A in would terms What the the What's portfolio, the on yield? kind yield? is new investment

Richard Dziadzio

Mark. sure, Yes. Yes,

yields for mentioned have overall the our had and as but in that this fixed on as we We've rates in also well. gains, First all, raising. say business, are been we would I seeing we've fixed and real of quarter income rising remarks, some income that interest good estate

a We X-year duration. have

rolling XX% year. So over every portfolio of think the about

rates long-term time, we good step a in long-term terms have will over it any is gradually won't So But of quantum increase which yields. and thing.

over I assets for business, of the maturing lower that X.X%, we year were think is to back maturity fixed if about from look is it coming at levels than they at quarter if yield book too or to which you maturity, at. rolling were What's good. a go this coming we the quite the probably our income over interesting now, saw we're

Now at they're rolling over most for higher levels. the part

well So and rates, cash the for fixed we obviously. smaller impact that And income cash, immediate yes, smaller future. given short-term on the that. bodes of have level And we Obviously, some money dollars portfolio. of our to an getting have a that relative we're

Mark Hughes

you metrics Then, any throw other I said you next year, Keith, And next accelerate I year. expect EBITDA you hear for want had maybe that you to adjusted EPS Could growth? -- think to properly? out

Keith Demmings

Yes.

to we think And we as be X% largely, our expect look of XXXX. at Housing that we EBITDA I into say, lender-placed continue Lifestyle. move as We And the to increasing more as the growth. have to improve great momentum and in rate. to overall do we get year we in at then certainly expect do I'd business terms X%

to we're deliver still committed XXXX set we do on going everything results We're which So Day, and specific have growth. of important. to target What objectives And long-term XX% and accountable be want average, EBITDA those Investor delivering haven't XXXX. we our we the deliver I to to said financial commitments. think is can to our from for north really we is

Mark Hughes

final if timing around that? for the one And increase in kick a then the the get why going renewal only Or is one. there is that cycle of just immediately? rate wouldn't that guard lender-placed, inflation kick The does in to

Keith Demmings

Yes.

and policies renew it are the they annual, year. each So

if in put So double-digit that we rate July, the annual for policies increases example, cohort about, July. of you let's take renewed for think in place

that then in time time going place. at think X\XX a it after in at months over about about think So a and rate earning it's X/XX XX

builds periods XX% month. also at I month year. about rate that additional and affecting a in approved months, momentum by it mentioned as takes number XX in really whole our So go And of by I contributing. also overall ongoing. the but we've filings the cycle premium increases are then month that of said, And That's XX different then rates got, state-related

expect we do business with we a where rate, total get a return tough if and about from one we've the terrific it to a to like right? that's be it's not the So with feel to The it results to a pressures. it's we mechanism quarter. deal Housing, and inflationary expect housing got designed opportunity work, perspective. with great and you in thing needs We're interesting, the think pleased quarter, And

The first half XX%. housing combined ratio is

first annualized it we as half will think But get year. normalize of quite rest ROE, still XX.X%. That The the strong will it's expectations. we're be we the own through overall, given underperforming our

It the got financial business. to advantages, cash backdrop. to is strong We've great be generates and our commitments. we want tremendous is strong. deliver still It It's want the on performance where flow. a do not I as to highlight it So that just market-leading total

Operator

from Barnidge comes from the question next of Your Piper Sandler. line John

John Barnidge

operator. multiyear a You you looks renewal? calendar a relationship. as expanded for think expanded talked with also talk -- the Last you hit cable an Can quarter, about you up renewal And about a talked about what on you like? about renewal how signing come potential relationships do maybe rates

Keith Demmings

maintaining this quarter. actually our clients the We record side this across a had larger tenure those our we've fantastic is clients. prepared of good on board. of two didn't is a and lender-placed And pretty housing the track I clients, renewed that We've our the true Yes. I'd team renewing say of clients renewals. extremely of on mention job long. got did but remarks, in record client Average a track

and all executing for we're for and but consumers. So it's delivering the proud based end that, clients, of ultimately on

a space, -- cable teams the done leader are I lot rapidly. our And mobile the a their meaningfully terms become of have evolving built with They're have they're we've In I who and growing proud work the of we're and products think think of who cable that there. operators really momentum. space, year, that's market services entered every

entrants. Hopefully, with strong that's And So as with sets we're we with significantly many up the forward. position, to how move a many, we've been new we've invested us approached been in and market We're this over great get we extremely relationships company market. we're new clients fantastic nimble have quite new think strong also to grow to Connected Living, carriers. And years we well-positioned momentum. that And in we've

John Barnidge

you expanded so you leverage announced you've think as to what then to relationships and how the to far? done the first relates in And quarter, it similar today do what then about potential

Keith Demmings

Yes.

think -- the the than when in operate. the still opportunity And Connected more growing that to I I largest that we there opportunity at we results. fastest have any contributor and business growth it's in I it's financial growth look Living, think

that's for we winning trade-in build pretty world. services most also now additional but terms we deeper On that and of place time. opportunity That can multiple clients. services new to in biggest, the brands still more then both space, of We've be. the do, creates do add talked a and partnerships us has business terms with your over about the where trade-in we around successful strong fact of of white So our expanding to in scope core what value

capabilities. talked lot partners. about As We we've create is want value network we That to CPR think for continue we a something our in-store to leveraging additional about our XXX are repair. to for Those the leverage that operate evolution, stores.

It with repair. give that's It T-Mobile, example was the their repairs work terms get another financial great a options we've done do we of be at I better to designed convenience. designed how around As wasn't choice that contributor overall. consumers significant and in service their think done to and about

the Scores have been and exceptional, changes over both of have parties. program say to financially be otherwise Promoter expect modify think than customer actively part a about we for I time, We the would little expected, work volumes program but feedback have I to than Net that and higher been beneficial that business, optimize would lower anticipated. and to As

this lot business. a So part of of in momentum the interesting

John Barnidge

Great. ask more question. And one could then if I

about thinking we or economies? about, how there should to offset On scale talked be way the expense these which that initiatives inflation. to size help a you dimension Is should

Keith Demmings

Yes.

So certainly of probably a add and thoughts, in. Richard couple then can

our progress lot transforming quarter. and of on experience. quarter by better That's driving seen quarter great first, so our in have housing a building more the over and really efficiency particularly digital operations efforts in over team, We

in half as see most. even we can simplify to get energy rates structures, focus support where and at current our current placement business. continue level the scale. do So acceleration momentum the XXXX, second of move looking the how we to also further we the do into the needle optimize We're the we in

have if And So get an we increase that that rate time, P&L will placement time. economies as over do through Richard's then work point, volume the natural is over earlier ongoing in to we well. benefit scale of

Operator

of Your from Brian comes UBS. line Meredith the next from question

Brian Meredith

here. couple A

remind on well recession? a Will from per First, Keith, Is you potential subscriber. consumer-led got as of here? could mobile kind us growth consumer-led it you as recession that the subs average decline what as well see if as impact a just revenue like you've

Keith Demmings

Yes.

seems say the high-end smartphone up as demand core market would smartphones I from a economy. of all, in strong mobile high-end up perspective, to think still in markets, very The and year-over-year, key markets. is be that, it's pressure our see we for even there in I first

to relevance see their good the for clients today take advantage increasingly investments continuing So really device it's in that's today, to thing. consumers. XG and growth important for We a of of push the mobile

if a become to device a device total and there down. That's Whether other I counterpoint monetize attractive, customer helpful got trade-in are buys the majority their Where backdrop. XX.X that of leading that's it. the if significant net less move mobile but our but devices more were us if be activity, based less to potentially big strong, strong, fairly We've we service. mobile time, terms on total more moderated may would new adds, Mobile be which device, subscription doesn't over that say subscribers. of are valuable, clients old be in not an our a would would ways very more the phone it nature starts shrinking that haven't or So certainly I slow be a The the seen. are or driver have used sales there see would in can phone protection subs. economics. million driven pressure for trade-in by Obviously, retains amount. of and are will sales, trade-ins indicator economics of would our growing that global impact number

So from short-term I environment. recessionary of kind any is think a mobile relatively protected from shocks

Brian Meredith

AppleCare is -- just that -- been big is that's that slow curious did because And if selling or about additional also talked does product? whatever take not I'm But down? I it optional you've know somebody all per Or right? services a sub,

Keith Demmings

No, I so. think don't

steady steady I really really we've think attach, seen churn.

cycles, a there are we certainly, having consumers the through strap probably attach changes more high-end in of haven't time. over to place are seen in think of if thing. economic cash protection I is the generally. for really churn material terms devices inclined protect And good But

So be a big that we don't would expect driver.

Brian Meredith

what's get talked of guess I next but on Got then the my we've curious, some imagine pressure you. multifamily the potentially. about the there And there? I just impact inflation you lender-placed, business, question, well would as

Keith Demmings

increases is Yes. more little is incremental Certainly, loss bit to with it's ratio. of broadly, a Definitely, in-line non-cat would I But getting the there pre-pandemic. say, some inflation. in that

we favorability the more ratios more pandemic. were home as during So saw people loss in

too, we've It's think with that on huge more I that obviously, I adjustments we just product up But inflationary a see needed as And impact. normalize. as justified. line, lining get and rate don't historicals. seen

Brian Meredith

severity, perspective, up So that than are picking it's a more from frequency okay. things rather

Keith Demmings

Correct.

Brian Meredith

kind of in loss but what's some rate run the call just last baseline for curious Housing the the, Kind ratio year adjust Global that when development. then quickly, loss question, XX%, of current Richard, underlying and was And development prior non-benefit just of you ratio? it, ratio year out

Richard Dziadzio

of the reserving Yes. the we're low XX%. would strengthening on out say the we did, getting When to we reserves XXs. back closer that we call it -- the the I that did, hand, other

other of through. rates the Keith articulated do coming have inflation come On in There as guards we will lag I inflation be earlier, say, the when and hand, terms through. what a would

that, quarter. down rate next XX% than the wouldn't any coming see so that I faster So kind faster than than XX% of in time lower or

forecasting, the as think so to to it's our go year, the of that I we're hard to year see into go going the through and as next XX% to It's forth. closer end probably improve over time, hard predict of we're what inflation the at. predict is going for because, looking that's year. forward rest looking to at obviously, we're what But essentially, do we

Operator

the Grace And Bank question of your final from Carter line of America. from comes

Grace Carter

original should than -- a could XXXX the targets is and the growth just question adjusted that it out XXXX assume XXXX. think base, of the the I we thinking expected I about get I EBITDA adjusted original of And questions. average mean the mean EBITDA XXXX, I that back kind the will had little likelihood years expectations to is for guess, like one of for just over of lower thinking what sufficiently original I implied? quick I a Or from come to couple So that start EBITDA maybe of levels guess kind lower guess, prior in accelerate next bit just growth growth XX%. the range? about clarification I

Keith Demmings

XXXX. commitment original great a the Day And performance outlook financial the question. and in that is It's deliver have that to Yes. Investor of say would terms for my we goal I

-- is accelerate for So what got in which is your 'XX we've XX% exactly the or that original growth 'XX shortfall up the and XXXX, in point. beyond to implies make to 'XX

at to loss the itself a degradation severity. XXXX, get of and rate by without naturally because we time parts a from that about good housing driven I look inflation, from it, think news lot ratio So the economy Grace. the And entirely in certainly that's how within miss, lot the of product a and ability features of as we're moving over inflation. the is we resolves there's is, Obviously, thinking particular and volume. in there's think unknowns about The as

that that, through and provided expect hope rolls we that down. it inflation will, provided as calms So

current income do stays in last the Connected and about our and handful through And year been and happens, of good Living the If normalizes has thinking in Auto Lifestyle elevated our of part into is is in So of generating consistently end in inflation a 'XX significant business moderating begins Mobile, it strength that commitment. particular, has through the of long-term then strong. particular, of we Global 'XX. XXXX And then moderates sort quite growth. has been investment The been on and years. the role feel

Grace Carter

the book still rate And Doug the we versus waiting to guess, just next of the mentioned that of then, ability before, range businesses? the for -- kind I think pressure the to in given housing holds of with should I kind And even XX% -- just confirm of increases the target XX% wanted as range how think guess through? ratio certain that I turn still combined inflation, exit quarters to within that I stay just over few from about kind the

Keith Demmings

end at would in I say little the a today a Housing. year we're unpack in range our implied that above Yes. you basis, that It if about our combined forecast at forecast probably to low going when think be may ratio finish on the we terms what's least ROE. and of

questions. big had everybody. Lifestyle the a challenging strength and we've with the our great Suzanne time a say a on business business. wasn't a not this So very economy, about, right XX% and segment. In all Global the half the first the the of Appreciate macro the Sean in believe much, questions model target led think We the driver, everybody. Thanks, as range by And sharing targets. environment. But a Moshier overall company. XX% we is worse the combined to a metrics. of doesn't to say, change We solid pretty reach definitely any Shepherd in let's follow-up meantime, We year, little interest please even day. based Have well-positioned, remains think exit than out talked range. I'd the those strong significantly financial you huge it performance bit still over it way that about business, for Well, of and thank the

Operator

today's wonderful Thank you. Please time, and teleconference. have day. at a conclude your does this lines disconnect This

Assurant (AIZ) 3 Aug 222022 Q2 Earnings call transcript