Assurant (AIZ) 10 Feb 212020 Q4 Earnings call transcript

Welcome to Assurant's Fourth Quarter 2020 Earnings Conference Call and Webcast. At this time, all participants have been placed in a listen-only mode. And the floor will be opened for your question, following management's prepared remarks. [Operator Instructions] It is now my pleasure to turn the floor over to Suzanne Shepherd, Senior Vice President of Investor Relations.

You may begin.

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

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

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

statements the of made Some today are forward-looking.

subject uncertainties actual those Forward-looking to statements may materially by that contemplated other cause are to from differ risks, and statements. factors these results

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

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

the now these to please GAAP For will I release measures, and details news to over two, yesterday's most more the reconciliation refer Alan. a turn call comparable the supplement. of financial on measures and

our partners our of world. employees an other, the extraordinary demonstrated hundreds of We're operating dedication This of this core morning, XX,XXX over to achievement we our fourth the specialty XXXX, leading both for by Thanks, and each Living driven for Suzanne. customers growth strong resiliency business and the performance our significant the market pleased and of profitable around of XXXX year with Assurant's represented commitment model our employees. our consecutive Connected Guided offerings, serve was values, the a earnings Assurant. P&C by strength Good and pandemic millions throughout demonstrating everyone.

as to including advance equitable and of commitment a our further we the communities. employer, inclusive foster challenging steps of most diverse, proud this responsible our more within environment years, to long-standing as I'm actions a additional equally During took

pay and inclusion to we bigotry. program collectively our supplier challenges by combat openly and examples and mandatory policies enterprise still ensure more slates several diversity as diversity Expanding our to opportunities of increase candidates. review of our diversity and teams and additional Some the discuss to faced and additional vendor commitment diverse best racism practices. sustaining equitable in to the we've forums interview fair candidate's we reaffirming hire relationships Already we launched initiatives, to included provide training, including adoption many as comprehensive XXXX, continue enterprise-wide and the our to

more will We serve. the and diversity consumers to better a other enterprise diverse employee each these to to expect also we We help resource initiatives launch believe groups support us workforce. connect

income XX% the year Now expectations move initial to $XX.XX. total by excluding our our per to growth let's in outlook particularly in share three were earnings million and by the Net was the and provided results. driven dividends the we holding $XXX strong, line Throughout strong to far grew with segments company. XX% This year, results Living. results Lifestyle outlined Global Connected exceeded a remained November to housing share million at XX% earnings XX% and we the operating per global increased full of growth operating operating performance in beginning $XXX These of reportable continued balance our XXXX. contributed combined in to catastrophes sheet of in

common During $XXX million XXXX, we stock share and consecutive in increased the returned stock our dividends. year dividend and for common XXth repurchases

this XXXX $X.XX complete end the the XXXX return by now billion of to of we of is and year. the balance course returning objective Our Day Investor over XX% expect

support and customer for Assurant the expanded we've stronger a growing continued and investments to build offerings global of the we future, our to out roll enhancing and key base. make new As capabilities

we emerge experience important the remain during critically key pandemic vital this customer and Our we'll remains This was as superior period. a differentiator. in

new XX to of opportunities of an contributed client average digital of business our had almost the partnerships XXXX, At the our end clients most capabilities longevity year across top and have important XX Assurant. our Specifically, years.

and We account world. continue also growth of explore renters Housing Lifestyle devices, Connected as businesses drove the focus to to our Global the [ph] for believe decision Consumer. our strategic auto, opportunities which cars connected convergence and we refer mobile, into our also on are Preneed, significant can taking there connected we future the our These so that opportunities and alternatives and within deepen homes, businesses to

market these that specialty net above Excluding income, of connected global XX% earnings, to XXXX offerings. our with generate P&C they're losses, roughly expected operating businesses represented embedded out offerings have XXXX. Together, preneed and segment our growth doubled strong catastrophe of complementing

business our drive to with home growth, and our we currently remains source the more expanded peers traded compelling discount to service services attractively market. believe to offerings priced. key Given including a continue We model those stock the future in relevant

However, more sustainable. we many and believe our consistent stronger are ways and earnings flow growth, competitive in cash generation position

new our share base year-over-year by in segments. partnerships. Within Asia we new through increased increased almost to our of was new million carrier earnings million. Asia with last growth Now as to Pacific. with Living Connected XX XX% mobile market highlights can we earnings U.S. cable operating portion XXXX year. Across we where North Lifestyle, like A expanded let million our grew some with of each by X% This and Pacific in and added wireless me and alignment $XXX be providers Global X.X America, subscribers driven entrants subscriber this attributed

We in closed Assurant also Mobile. devices the HYLA million on and our through XXXX acquisition of processed trading X facilities

we Global of XX will years. protect expand million further client home nearly acquiring we've the introduction a expanded new we for talent the the Lowe's In Group, Automotive, acquisitions recently, to to in programs. capitalize channel More XX% business. national product deal scale, Home we and key we've adding is equipment or clients look of dealer a business, of global the label support scale leveraging automotive Volvo dealer are which our white Lowe's automotive value in Daimler. The as best-in-class In over we extended the well, of AFAS, As over and know our already extension next the devices. service capabilities roster believe our of our EPG, number Home a since two provider Pocket sold contracts upgrade with insurance on AFAS, and niche year TechConnect, lean a opportunities. our our contract cycle tech we the by relationship version natural XG scale and With in provider service level added upgrade, this a to financial manufacturers, TPA to attractive long-term Improvement fourth of Warranty and services, several growth In training service dealers and Geek plus software we heavy their to including expanded within increased providing quarter, leading through OEM, business and acquired trading added earnings has of smart contract strengthen our and XX our significant vehicles and with increase direct embedded and market smartphone our Like HYLA we and markets. American

administration inspection through claims amount without continued customer the experience, of on virtual the process minimizing vehicle. process, time Within focus claim's reducing enhancements vehicle improve the Financial to digital times also inspection Services, the of our Global for owners our and our we we're Given benefits with growth where about we're future. omni channel partnership announce capabilities. large attractive experience to for We're excited business's card U.S. leverage that services a issuer, the for new the providing embedded credit excited searching card customer enhanced prospects a

proprietary source stronger XXXX, year. to ROE up long-term. cats $XX including we customer $XXX XX% improving now of million, management. multifamily Housing, net longevity income, excluding increasing operating and Global million on strong we delivered and increased of focus XXXX, cats to as platform, mortgage renters Moving policies nationwide. attribute housing, our In and had our strength These remain remain lending only X.X our we well single operating the process. role our returns as X% compliance We from was another risk and our processing the for client over to continue make as client proud of the will over experience lender-placed get we our year of business, on in relationships percept critical customer Within experience we since to strong our renewals as progress and million and productivity the

digital to continue growth, innovations. and in invest future through particularly enhancements We

introduced XXXX As summarize, stronger with But recently despite Global global world. designed and showing the renters insurance progress. the low global a and of ongoing flows of were fully continued Global capitalize portal ultimately rollout the was interest produce quality earnings for in performed Preneed, the took convergence $X light steps year billion in makes And strong continued that continue long-term. We cash to Preneed to base. pandemic a our COVID-XX In overall, property a We and it's rate newly solution digital, will additional asset build To future CoverXXX over on to to down well of increase the high management residents the for continues simple transformative connected a the challenging environment. attachment rates for Assurant, XXXX. strong environment. year-over-year which resident compliance

evaluation As we alternatives annual look complete for of our provide Preneed. at XXXX, outlook strategic we once we expect our to

made With progress in as progress earnings to been expect has sale before exploring an our interest next have and To-date, our update May. said, business. strong, We on potential the we the the provide including of including call financial are XXXX. excluding Day, on shared for today, we look Preneed, and XXXX average against objective Assurant catastrophes on our operating at XX% Investor deliver track annual to EPS growth, XXXX we that

off enhancing I'll stronger review assumes base investments to over of quarter view normalized including EPS high-level Richard? In As invest the in expected, results in promote slower to actions Richard of XXXX. turn continue we experience innovation, as level implies fourth this future prioritize non-cat And a build to XXXX, will in efforts, now of strengthening to Global XXXX, continue Housing. in we the a to for more responsibility further XXXX. and our sustainability. and and social losses growth product the our customer call also

good Thank morning, everyone. you, and Alan,

review our amidst XXXX for we underlying business going results Alan for performance trends pleased pandemic. and are fourth XXXX, particularly year. quarter As the now the I'm noted, with to our

and both the workplace in joint a we quarter, and manage For In more the lower housing. loss catastrophes rate segments, income million quarter expenses by income a across severance the $X all venture investment $XX by to This reduction declined net of as evolve operating Assurant's million $XX in incurred of fourth in estate continue $XXX due investment real excluding in to experience operating sales charges environment in also income reflects $XX offset income net estate decline XXXX, non-cat we million environment. favorable drop includes partnerships. partially to million, interest from mainly million real

down venture quarter, $X segment let's The was Now came reported the investment sales earnings This million to $XX in move businesses, year-over-year results half Global decrease $XX million. a Lifestyle. real partnerships. to of fourth decrease estate across segment joint in million due of which for spread of primarily net from income the

the Asia-Pacific from This rate North growth, mobile Excluding income, $X were earnings growth continued particularly America, flat in items. the to December. earnings decline Europe, in lower Living modestly. was while and in Connected Auto, Results non-run was of acquisition investment offset of mobile well earnings Underlying driven Living growth mainly year. subscriber were in primarily results in by as prior from Global in by Connected by largely as HYLA organic million compared the contributions increased driven segment

going quarter the of that In $X the in had forward. real severance estate expect million segment addition, we don't and charges

at mainly to revenues, the by we trading was decreased disclosed total a in in fees second earned Looking and million. mobile contract million net driven revenue, due reduction $XX the change This $XX by quarter. primarily premiums

driven was of year-over-year. which Auto $XX X%, were or fee revenues in period income Excluding through increase vehicle Global Lifestyle service Overall, this prior flows trading X% up sales by contracts. change, revenue million, an from activity down

case the the first device saw December. new in we availability, HYLA phone its with was by few driven month introductions, last an This years, and uptick as However, from Assurant. greater during in was contributions

the in strong year-over-year January, we expect activity quarter. and trading see continued sequential increase the in Given to first volumes in a

of net and income, acquisitions. the as will will operating programs we second the in see half the mobile more new earnings Lifestyle's by the well growth expansion as XXXX, growth towards led of come Global recent be For from and expect year. year mainly expanded contributions from full continued to heavily with Overall, weighted

unfavorable improved loss anticipate services, is the in which in XXXX. also and lower following positioned to improve steadily seen We volumes profitability financial experience

We relates some related pandemic. are cautiously our travel negatively of impacted which optimistic, to programs, particularly as by were it the

rate the We expect earnings low down Global from interest the be modestly Auto environment. to reflecting pressure

are experience also offerings, Continued investments during capabilities, and anticipated in the the product of our year. customer course

was million Global of balance million, the of compared to net $XX the XXXX. the quarter with in Hurricane fourth Moving of higher now $XX from over due were Housing, totaled The claims to to decrease Delta. to catastrophes, reportable income for the operating half million primarily quarter from related fourth $XX Zeta, largely Hurricane losses

$XX earnings lines claims premium non-cat increased profitability investment income of drove The driven all catastrophe sharing ongoing reduced frequency losses, by and of results or foreclosure million, increase offset from despite Excluding saw by REO We volumes improved XX%, Lender-placed also $X was across loss reflected experience economy portfolio. business. favorable declining in our million. mostly higher moratoriums. rates, lower

volumes. lender-placed by the was property fees decrease mainly net revenue. offset earned by and housing in and premiums driven and our The exit lower previous small insolvent The REO multifamily commercial, Similar both Housing Turning growth to partially X%. items. quarters, Global decreased businesses. three client this was to of specialty

Housing's Global overall reinsurance expect to non-cat ratio operating cats be will XXXX drivers. be net to costs primary and XXXX. lower excluding loss in the levels, increase to We compared our income, higher cat more in normalized An

in to We first begin quarter. the expect both indexes

our approximately reinsurance catastrophe we January, XXXX cat two-thirds our Regarding program placement. of costs in completed reinsurance

As resulting of from placement, program multiyear part this we U.S. coverage, of the approximately benefiting secured additional now in feature. our XX%

the saw offset. reinsurance pricing overall increase expected, in which purchases layers As are help in an multiyear our we today, to of

could rewards risk. As and remaining reduce the to risks July, program that portion additional evaluate of our continue the purchasing reinsurance we we finalize of alternatives the and in will

however, are We increased coverage. currently assuming not any

half some expect increase in the our year. of in yield second We the volumes

foreclosure However, influenced pre-COVID And reverting to volumes the moratoriums. will do by we volumes anticipate not levels immediately. timing be the of

Global of The move a of reported net million Preneed. decrease income year-over-year. $X let's the Now $X segment to operating million,

had conversion the non-recurring nearly investment we system related million to pattern and of items assumptions addition updated In to and policies. income, lower a for earnings $X new

The impact immaterial. statutory was items these million. $X GAAP While of the impact was

we In we trends increase mortality an as addition, the in experienced quarter. exited

monitor increased continue to to quarter continue We U.S. base significantly first pre claims Preneed sales, COVID into in expect was and Revenue primarily levels. X% sales trends up increase second remain XXXX. XXXX, since due of of below growth have and the to for in so, the they half the

slightly $XX the of XXXX fourth the will to This the earnings results strategic investment Overall, and until the At XXXX ongoing we our challenge strength in to million, of the of our in For due global was business XXXX compared in Global pandemic. we to Preneed expense reported the actions compared illustrating income million corporate, of despite XXXX. net conclude the operating will expect remain quarter operating primarily alternatives. Preneed evaluation results loss be was $XX quarter. lower up

the a investment The improve full I to loss the corporate to the our also to perform expect portfolio. XXXX, For portfolio year well provide net during wanted we update from on continued operating quarter. XXXX. quick

the income to yields the of in three seen increase and lower credit available defaults, portfolio in short joint the and low estate the of market level of The low venture downgrades levels and are mark-to-market. the income be strength through the can due items, assets real absence investment lower those the of term value the in quarter. While longer

the $XXX holding is our Turning fourth with minimum million. liquidity, In segments target from above which operating level. year million our $XXX company million, we current $XXX the to dividends ended totaled quarter,

and dividends million In items, addition from we expenses, to our related million preferred common EPG. had quarterly corporate interest acquisitions million also repurchases, to HYLA and share and three of stock $XXX $XXX and of $XX the in outflows main

HYLA of the in through fourth financed partially subordinated debt we the quarter. reminder, a issuance As

liquidity cash the our supported XXXX, robust enter capital Global flows by Lifestyle by strong, and generated As positions Global Housing. remain and we

agency we to For requirements. the growth year approximate regulatory the subject overall, of expect to rating the dividends earnings segment capital and businesses and

shareholders We expected to years, shares return somewhat objectives have to million. Similar in XXX,XXX February additional we last capital the is complete $XXX be we the through XXXX. two million now of half billion buybacks And the $XX Xth, weighted $X.XX returned to an for approximately first the years. of three-year to our the year. towards expect quarter in repurchased prior pace In second

share We have Directors. Board additional of the includes by authorization, repurchase $XXX authorization million our remaining recently in which our approved

of redeemed March in we Additionally, million $XX January, the remaining notes. our XXXX

share provide to that I issued closing, reminder also Assurant's date. will to At the of our wanted depend XXth. to convert conversion March price Before up on The shares convertible our mandatory number on shares will shares share price, current uncertainty, employees, common leading our service, a strong minimum clients to despite our to footing. action maintain superior took to shares. our summary, conversion financial of of and we would in would with safeguard the year In expect we issuance provide common result

page We continue products meeting turn As we we're open the to to our And growth, the enhancing Assurant look future. with the deliver drive we our year on to to to that, please call profitable and to continuing services, commitments XXXX, and a as ahead, focused operator, questions. strong stakeholders. for all forward

you. [Operator Instructions] Thank

first Our KBW. question George from with comes Bose

is line open. Your

Hey, good morning, Bose.

I multiple you the the insurance we of earnings ask been focus good just potential sale broadly, those life Preneed book just business. based opposed and transactions to morning. consider a and to sales value And, about want on lot multiple? of comps pricing should recently. good to be as Hey annuity do the the an on There's

important first our So, to reflect Preneed all, business. it's on of

We and unique have a strong business.

distribution I And able well something have that's call. COVID-XX. the on in Preneed. QX announce we'll that a in There earnings our is in company process block what hopeful be partners interest in interest and perform advance encouraged. through is a continued to of we're strong are We and our we're robust And that we of say contract, our even would business important long-term have to

I to not we're as good process. that valuation, the do and for the think we're middle track on deliver to But in of terms really it's speculate a In I of appropriate on our think further our strong specialty shareholders focus Assurant day, reposition around at on and and P&C outcome world the strong engines growth our the of end and offerings. balance the the of connected

helpful. the just Depot Can have that Okay. extended the competition over business about talk Thanks. states partnership. of returns your to that just been remind about in targeted us headlines just business. couple switching what in warranty was Home you are? That's Allstate a competitors and - the And that in There growth

you we the a our call Living the in and which given generation see of business, And our Home, is which So, excited we kind providing are inclusion contract innovation. the extended of and Pocket relationship connected for service next Lowe's, talked about really kind important prepared the an every to all that own. part with mobile Connected contracts mentioned contracts. today the between we're what keep we you that device on and about as service services call of of connected deepened we've extended Geek remarks convergence overlap We It's around partner. service

you expand at was So deepen. year that and we've of includes to see in And strong success our another that's Connected and continue if you grow exciting. it But and able it we believe growth Living, our been broadly, contract look with that service to business.

global than or really so the and world key strength I a in now driven or our by Japan think our we've and markets innovation, around years, Europe. in new partnerships announced like last the three dozen four more

and XXXX, the continue investment good midyear. feel digital about I to our in we're for So, to example, substantially going We, increased to in we differentiate. we invest momentum think

a we're in our we channel for sure wanted but to strong that we digital, Just impact experience and COVID aren't customers. we of everything the see digital complete want doing possible omni drive not make to already

Okay, great. Thanks.

the question UBS. Brian next line of comes Meredith Our from with

open. is Your line

Hey, good morning, Brian.

morning. Good Yeah.

you question, in beginning mobile little and guess. know a we a slow? bit the of some happening the and of more mentioned I to little kind into you expect what's growth pickup First bit the Can some plays continues from think take year, a Cover you devices but how play kind of out, Sprint, also there the do top this does that, from kind just at particularly to out How impact least we how expect of year, through growth see that and when meaningful to T-Mobile? perspective related line? do I

strong count reflect that in on numerous had And, if year. growth disrupted COVID. through the certainly that strongly I was We the still to Pacific. But and and probably as subscriber Latin that throughout happened ramp prepared the business, count, XXXX most that challenges beginning subscriber we the will grow go the in had a as disruptions Yeah, positive region despite mentioned We North America we COVID the I grew in closures despite America, year. by was and and Sprint with XXXX remarks, Asia are and beyond. the store we

because years, COVID, a momentum slower of grew business strong. and remains certainly that the So, prior little really bit underlying than strength of but

it question, you and the your guess I about on can use Great, then second kind kind are think today? just as of remind just back of proceeds to Preneed my thoughts sale the of you far as as Preneed, us, what

Brian, hopeful I very we'll to important is, shareholders first for thing. outcome think Preneed thing our a most get important the as we're on most great that the

Normally, strong support company we organic look the If time. a our at deploying have focus and over history, growth capital you capital on funding growth that we're and and to happening. first that's record of disciplined grow track management our we ensuring

hurdle, organic our company. cash-on-cash look key underlying high M&A of strong to we in have growth M&A we're have capital. at at reminder, And and we across engines we With IRR world. just a very then focused return and the We look really a growth connected as our

returning of the auto time we to mobile, that's our of track is bulk be. where So And strong. excess and renters that over would shareholders it have capital, if record that's

on about of perspective that I And can active competitive give lot one marketplace. curious. there? in going Can bit some marketplace, little mean, there, very Renter's the you hear environment one, maybe a a we little on insurance you. what's last I'm about just you insured Got these talk a tax

business, last our added and were policies continue years. invested we Yeah, year, share, so to XXX,XXX the policies, couple to our of give we've we you last And over million. up at net like take X.X X% gain or if grow something really look

If out property you out any the and consumers we're the any there importantly, as in channel, for a CoverXXX, process the and rolling which drive experience easy. coverage makes it's to from as management of do experience really time. digital of company. attachment whole easy then purchase It digitally, side-by-side our good use that's compliance appropriate will over having And

about we So, good our momentum. feel

and share We relative continue to grow gain to the market.

If you think had by a more moving. given about of many so, lot just in business. U.S. challenges disrupted renters. grew year less it's multifamily, we it despite than policies that, the last the good X% was with markets a COVID people the And of We mobility

continue offering. our continue gain We invest differentiate we share to and to to

you. Great. Thank

comes line next the from Mark Hughes Truist. question of Our with

open. Your line is

Mark. morning, good Hey,

the, adjust low, about are your for like Global rates. Good morning. I'll of your prospects a have could compensate to should are on then offering, the there in being interest ask adjust we And interest that Auto net rates asked In down Auto? question, the I what before. XXXX and kind you the line talked Global that? income about think business, think pricing for If I top what growth? in question you perhaps

the I'll question go Mark, appreciate then, you investment So, deeper can Richard, that. start. on around income. Maybe And

embedded income That a They're duration That's product we've underlying of growth the to something around our and are announced we We've we've XX% And couple really to recently future innovation added on look other Warranty mobile into prepared through. contract portfolio The Preneed, vehicles. in is Europe. from China the like growth, at in aside, that If That's And beginning others count. look in some is considering a service years. the in announced think, last you Richard, in drive we earnings, comment bodes business. previously our and if what and the very closed income very business, electric of Those mentioned by impacts, strength Group, dealer driven on over source strong. short another this key remarks, going how also our to longer our at this capabilities well the future. put about of than come for since expanding share in of underlying partnerships we more the growth, before think the partnership I the the earnings. business strong investment up you But should kind shows term our you underlying that. investment relationships in

and Sure, mean, to on would Preneed. of obviously, earnings add just from relative to more-shorter only I the I coming to are say And duration in portfolio, that, income. is the investment overall part

duration XX-years, You half Auto. think maybe about Preneed, having of a about or think that less for

short-term the year drop last? interest taken part, a into of account current had to this long large headwind how so rate somewhat Who in us. in going rates has So, knows the impact terms Right. interest a forward, But that's on for impact of far. moving I we've think,

short-term go are lower. don't rates I much any that, to So lower, going think

in. So, basis, good there. cash I a And the enterprise question then out that's think think longer-term your that's is And of one. coming all just in settled a and from I

low, on, competitive a move it's things interest stay rates if environment. As

market, embedded spreads some we'll in but there's happen typically pricing, products. interest rate where any would with of that see in So, sort

overtime that typically So, re-price. in there's a should like Obviously, Mark, lag things that.

terms In feel good. of really we XXXX,

we've Alan we've grown the As mean, vehicles that number had. the of has business good protected I said, momentum,

us. Good, recent and of growth, well. for as for acquisition this strong have future bodes with that AFAS ours integration we EPG well Our acquisition summer and that into company good, the synergies

the the the one So, positioned we to go players of player, market strongest in think and we're strongest win forward. as we

add volatility Preneed the assuming or policies, a portfolio, is even duration. we're in good if process, we I'd look investment there, maybe XX% on and given other just income something and the long like of XX% at our of get And total investment the Mark, thing to Preneed more we and outcome

other of create the in benefits exposure which future. a more is the successful as even stability will Preneed of our the one further company outcome So, of rates interest reduce to

you On for that. the - Thank

COVID view think do losses that in On the or Do related perhaps the you How phenomenon? is you related do broadly an weather underwriting Housing, non-cat that? phenomenon? just or more industry

question. good Yeah,

have of loss last parts. comes a a relative ratio couple this lower different had, loss to year, We non-cat from year. ratio And lower that non-cat

I think on we the non-cat which first part our small ratio. overall is weighing business, exited commercial, was loss that

The second part we've specialty there. some economy the had, and done and of the be within that property, with underwriting would we've sharing the and there improvements the part particularly nice growth business results the

would So Assurant. very to those items, particular two I say, are

And weather then, due We're less not weather, have of phenomenon that this we've of the not more as due that really we've year, thinking flood seen thinking in it's and little year. this market. So, wind, to frequency across things a so to the like we also this did more had claims it's down and the and COVID much we're come year. the increase kind cats or a claims

So well. as too those maybe there's a play against

move we a slow were year ago, we the we're given we've discussed Looking to were It's But in we as I that potentially better conversion movements XXXX, it's loss going in up. underwriting, where we that probably But than forward, much. be said, the we we think, towards the historically. a done next in past. what place our that in up will think ratio to non-cat move think don't a moment going

as where So we our up prediction. not little were to a it is we'll move but in XXXX, progressively, not bit, as, much

said, Richard we the have summarize been taken, of of Mark, add would and has we actions what more kind I by driven ones than thing half mentioned. improvement our believe the Yeah, Richard other to

CX improved we've thing AI other investing the in which driving has benefit been The better efficiency. as as of Automation, and heavily well is

is in So, of the was XXXX do we up industry, by but happening there step and of particularly driven improvement feel most is drive the being us 'XX we've this what's low, we given we good feel expect to some taken here. some about effect in but actions

peers And to mentioned elaboration Any a you bit market. the like of little maybe to like feel had you discount services you Assurant a a give but in how at then, that? trades on you'd softball, Alan, home said

Yeah.

or company. four income over our really a at we've that we things the type service years is to fee last step look five of be at you back One really business of more look and much company, evolved if the

We growth. have of track profitable record a strong

If on years four you operating strong mentioned in of now row it, we've earnings a look call, we growth. at delivered this

years, if holding they We the of times we you people and now are multiples that. that are we cash into, you earn evolving in we our on or mid-teens can get EBITDA, $X competitors the as said at home on we've we're have all in average to that that if services the look a market that, others, at many trade over well flow below segments, look And ability the if the at company.

shareholders. attractively disclosures value to continue we metrics continuing believe time, we deploy and to how client look to to do year our stock over priced, going our made that is and for on the work and to continue how quality plus better we've the differentiate. And at our we we so, franchise, the XX And just tenure we help earlier, of maximize our investments we're our capital investors understand the mentioned evolve

you. Thank

line Our Michael Instructions] from Stanley. Phillips Morgan the question with [Operator next comes of

Your line is open.

morning, good Hey, Mike.

guys. morning. morning. Good Good Thanks,

[ph] in to would else a that there? the cause would you that headwind your Europe about headwind a Is that $X Europe in You there - comments, amount besides non-refundable mentioned you point anything million. Richard, mentioned in

over part XXXX increase they good I had and of the is QX going positioning we No, growth. overall, going Europe. the mean, And a year, I headwind in forward, them for of think despite think the that themselves was pandemic. profitability do to in the biggest really terms for

think do to it several one-time expect of recur. was were that a kind items where do not really we we thing small So, a there

the been this business? you've bit a angle, frequency little of are theft that recently, on kind helped seen Or benefits again. certain vandalism is the you benefits done have Alan in down. is on theft of of housing. what mentioned of you've related I'm prior great. follow that Okay, more that saying, different was that kind re-underwrite A prior that down? that question curious, And piece a things and is COVID has and to vandalism on And of to calls,

The feel then free on and add other it one, on that is. thing would to to I Richard, add

seven Our than book six, ago. different very five, is years today

most. about the the and foreclosed If a portfolio, we in to get aren't backstop lot really a to Today, we're last when vacant properties of housing providing a the had crisis, see you market. able people after that you coverage. And in housing tend where that's think we're strong

housing theft a normally you're you stronger when and lower see time in over So, vandalism market anyway.

So, I you what seeing. think part we're that's add anything of if I don't know would else? Richard,

Alan. exactly No, that's right,

even coming other is, down, pandemic. I thing a to we prior think seeing the trend the were

I could pandemic we're that, not a mean, there a driver. part thinking that not small something be but that So, that's of is

the Services Okay, Financial me one great. Global on And then Thanks. last area. for

down. bit You've what you And, legacy about there? from business the so being business from is impact I turned we balances but any? last we this for again there year the a are much And be on to at how there, legacy talked a from then has around on guess talked in trough, of that about are expect year, a COVID? better you that bottom than COVID turnaround

really that new I just we're when I'm the that on the excuse starting a announced signed new then had me, we've in to they momentum think significant earlier just - we today, Warranty The space. call acquired as And signed about in client another client. Group, business, we encouraged see

growth So, we've pretty in about the that got us optimistic several future potential makes that. drivers

the a last new the clients better offerings see in expect in much and that the coming years the the this contribute In to us to we'll COVID, areas out over couple we over that terms grow time. been position of disrupted years. travel travel. of how this and - But year. for And really And by new business have see have that's plays improvement

appreciate you, Thank Okay. Alan, it.

Dowling Ransom & Our with comes Gary Partners. next question from

Your line is open.

Gary. morning, good Hey,

on employee in morning. whether business the Good represents to wanted that estate there any I of come? is ask And kind real change, to more so, if severance change? model

briefly, a And We've work Richard COVID. level, briefly, we're start no employees' what of those models can XX% maybe, have COVID, higher kind about at our virtual post provide start of percent. looking high pre doubt are. and a the of you me let yeah, At more. and I'll future we'll just And shown we had

think you looking the really and the is add aligning our with the So, I just the ongoing main that it. real But resources our evaluating driver at we estate. company. particularly are management growth But expense Richard, don't of why on and

I think, think the when real of think I estate, of word we facilities.

new We So, that going going space. it couple is in a linked or to our be our due in facilities that to forward. and We'll we're using how be home from not back had working coming leases going work to were a XXXX, early space getting environment. new facilities we're

So, we to take forth. had the just improvements on leasehold an expense so of that acceleration and

harbinger why don't we actions to it the are really So, a we get we $XX to positioning quarter, impact as fourth we come, position year, should started fourth things So, which our ourselves, when what's that from point view? one-time a of also footprint? from but view, we of Okay, we it's next take total the such. a just think in quarter it's a to be, million really Where of facilities out headcount called is point

helpful. that's you. Thank right, All

competitors but Global has renewed in that regularly. in of in more happens Another one give lot at lender-placed goes other it's to whether get business. sense of intense any competition you a Lifestyle, trying can the Housing Obviously, all? But it? was on on said assume mentioned changed renewals, are the you wondering the what I you I a those on or I us you on in contracts, competition - wonder

is our compliance, rolling which renewed No, We're our the of strong conversion differentiating business I important of platform, years, is We've clients around invested this two work that the relationships differentiates around continue prepare the in reality our single them invest thing to it the ours, our to we XX% we markets that as with competitive. there. all and new SSP, position we've that just said, source we last over on system. That's compete tracking the of capabilities. like And experience. early capabilities really really we in. mentioned, all With think our a to have of our many out in something early with our as tracking customer

shown our always So, I competitive pressure dramatically, we've our to our if the lot, really last you for the been and able the But there. partners that off of we've creating don't grow that value look ability it's changing customers. we're for business driven at see a decade,

content has something some it. you there fee that investment that you're on oriented. else volatility with with the the might enough through going a you more process is Preneed, becoming this in think business some Global in Is volatility? volatility that can And And business Housing is of embedded in you're that in business, last that and reducing this which we gone, side. future? risk assume the handling strong about for Or that's

Yeah, a couple that. comments on

through the last six, significantly seven we've So, the years, if we purchase look over reinsurance. reduced exposure of five, our

down a non-strategic pruning $XX go also back than morphed also lot 'XX, retained tower $XXX multiyear we We're now, our risk. million about to XXXX, reinsurance been million. event If also exposure. you its of We've creates half which and more were of to at we've of stability

small year example great that so a commercial a our exit or of of So, was ago.

if always overlap between But cat the look further some away. could are strong. we it's there at of other we'll when our it, Lifestyle share exposure at we look Housing So, and look business at actions our that business, that

are really year, in XX% cats relatively in with If the ROE a home. capabilities you in convergence device, the we in see starting we we think and roll do to opportunities had A of the prepared about in we're the car, out to relevant the cat even renters a Lifestyle, Housing. around Also, in Housing. home, connected the remarks, mobile mentioned as the in what our lot high

reduced of look to to be ways lots So, of our strategy a reduce it's an have volatility. our portfolio at and that generating important volatility cat strong to reinvest and the cash we to and continue that earnings, we'll caveat continues with cat part lot

was reduce in seen little that the with that, capital we amount that just and now mean, the We've year I capital the I look special says, come Alan this back. could to year. question pandemic with bit and add volatility, if we get I to reinsurance our as cat do the of mean, every do at obviously, it was market. And a

we retention, we'll shares go forward. purchasing things whatever, like the things, could the or bringing aggregates In as volatility looking quota keep and So, doing little other at reduce that a down my we Alan prepared there. But XXXX. as can't on anything said, I wide keeping eyes plan and our not open opportunities we we're are remarks, said to on to anything planning

helpful. Very much. you Thank very

comes last with Our question line Mark Truist. of Hughes the from

Your line is open.

good again Hey, Mark. morning

Yeah, thank you.

high. which usual placement is questions, when my are quite delinquencies the we rate, about one obviously Another think of lender-placed

REO about program. talked the You

been seems how do we early think seems have escrow these you've not place. getting You about It be understand certainly the can that apparently falling used the higher that, mid like place year. limited it paying just and how lot these about up with pressure last into but very aren't paying like they'd but your have being had But in delinquencies mortgages, people so them in if insurance, are presumably a their of are under funds since been moratorium soon, bucket far, delinquencies pretty impact foreclosure not.

just going I'm curious So, what's on there?

ex-cat we're to not housing real the lot through the historically at Mark, I earnings actions got we're on even market the market know. seeing market Yes, weakens weakening. is strong. of last we've there the mortgage provide that whether some don't we the we've the stable to or lender-placed housing point, not, be evidence housing now think market remains four But that going think a about obviously to And way the to the over does to support provided. if lender-placed the is, it's five or roughly important where And housing if weaken to years, market

has on. well and the if and positioned with mortgage that. of business moratoriums certainly business industry always the the what government REO the foreclosure we're But just out know are But happens going is and given So, to is will does called depends going impacted negatively happen continuing the There what with XXXX we've weaken, there this lack we market year. lag. our volume, that lot moratoriums. in the don't be on through might that been we support a It a foreclosure

substantially are they bit, see these plus slowly. If tapering delinquencies tapering we continue XX delinquencies, day a to but and up the maybe they're

Yep.

that an on Does have the impact business?

happens depends - is our foreclosure and on given there to in moratoriums. as see hard weakness say market, our when what's with flow it's with happening that housing should really mentioned, in It We just economy through into we what really I it the dealing the with business. government broader eventually If COVID.

are So, more numbers the relevant for your I that it's really foreclosure business? guess

benefit foreclosure Mark, prepared our by But moratoriums in sort an have normally where short-term is like on negative impact does business driven next and counting big has. the if market volumes our No, historically in it and forbearance again, well remarks seen. to properties extension them. the many allowed moratoriums biggest I but we're as real of things, We're through and would support that of the positioned that. given kind to return said - is and seen not the year, weaken And said we As you any of I function the just remarks, we've aren't it's the therefore, are prepared process moving my positioned in well

call equilibrium, get and So, and think more to to we kind start moratoriums, it the balance, we market past gets over more as we into normal increase but year of we second XXXX, kind pandemic back times. little and the when do a back the it'll to time, that probably the get bit, of a if maybe an half of

Thank you that. for

clients if really year strong did broadly a and and Connected a COVID. to We're for customers proud It growth and Living us, in support reflect and what then I just broadly. was more through right, XXXX both in take of moment All our our and excellent, Housing. employees

We our continue to strategy. long-term against execute

we're hope some and encourage shortly. to encouraged finally, invest, And and 'XX. You Global sale progress that, for we clients EPS say which that their Preneed future to share, growth we our including continue our the gain deliver add of Investor as by expect us And well then outcome in operating share the the differentiate positive potential products. of XXXX the average more Day annual XX% the objectives, to still really mentioned on heard augurs to into on we XXXX capabilities and to we have

we're So, And XXXX. for going call. a today's stronger performance our pleased we're To you building really in to summarize, XXXX. in thank with participating on company continue in focus to

everyone. alternatives any please Global the and Following Thanks, for with follow-up the Preneed, we full our XXXX Sean at that our to provide outlook of evaluation planning Suzanne reach to Moshier In questions. are for Shepherd out conclusion year of point. meantime,

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