Strategic Performance Drivers
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Achieved record second-quarter earnings with high-teens growth in adjusted EBITDA and EPS, excluding catastrophes, positioning the company to deliver its 10th consecutive year of profitable growth.
Global Lifestyle performance was bolstered by a 24% year-to-date increase in Connected Living earnings, driven by the expansion of mobile supply chain services and optimization of recently added programs.
The company is evolving from a protection provider to an end-to-end business partner, leveraging integrated ecosystems of technology, data, and AI to solve complex client challenges at scale.
Global Housing growth was supported by a new partnership with Freedom Mortgage, adding approximately 2.6 million loans to the lender-placed insurance portfolio.
Management attributes the durability of the business model to a shift toward embedded services and protection partnerships that generate recurring, fee-based revenue streams less dependent on traditional P&C cycles.
Operational excellence in Global Automotive, including 26 rate increases since 2022 and improved loss experience, has led to a 15% year-to-date growth in adjusted EBITDA.
Outlook and Strategic Assumptions
Increased full-year 2026 outlook now expects mid-single-digit growth in adjusted EBITDA and EPS, overcoming $71 million in lower favorable prior-year reserve development.
Excluding the impact of prior-year reserve development, underlying growth for both EBITDA and EPS is projected at approximately 10% for the full year.
Global Lifestyle is expected to lead growth with low double-digit increases, supported by the continued maturation of mobile and reverse logistics programs.
Capital allocation strategy prioritizes share repurchases at the upper end of the $300 million to $350 million range while maintaining flexibility for M&A and organic investments.
Housing segment growth assumes a ramp-up of policies from the Freedom Mortgage partnership over the next 12 months to offset recent loan portfolio transfers.
Operational Context and Risk Factors
Connected Living results included approximately $10 million in non-run rate benefits from a client adjustment in extended service contracts and an international tax benefit.
Global Housing results were impacted by $12 million in lower favorable prior-period reserve development compared to the previous year.
A client transferred a portion of their loan portfolio to a non-Assurant servicer, causing a sequential decline in the quarterly placement rate to 2.02%.
Inflation guard mechanisms in the housing business, showing a 5% year-over-year increase in average insured values, serve as a primary mitigator against claims inflation.
