Assurant (AIZ) 3 Nov 212021 Q3 Earnings call transcript

Welcome to Assurant's Third Quarter 2021 conference call and webcast. At this time, all participants have been placed in a listen-only mode. And the floor will be opened for questions.

Following management prepared remarks.

If you would like to ask a question at that time, please press star one on your touchtone phone. you Operator if star please Lastly, X. Instructions] should assistance, require press [Operator my the and to Suzanne is pleasure It now turn Vice of Shepherd, President floor Investor Relations Sustainability. Senior to over

You may begin.

our and good you We to results Thank you, Third morning, XXXX Operator, Quarter look everyone. forward discussing today. with

release the today's are issued Assurant's for after The Keith, our Chief Chief and remarks announcing Officer. results Colberg, Yesterday, Executive a and Officer, Joining into XXXX. me our Alan Third on released moving Alan, corresponding Quarter available President, Dziadzio, a are assurant.com. for from Keith Q&A and before financial market Richard call supplement we closed, the Richard news We'll conference call our session. start Demmings, our Financial with

are made Some statements of the forward-looking. today

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

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

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

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

Good morning, everyone. Thanks, Suzanne.

offerings Our growth, Living higher Lifestyle. continue earnings strong capital-light our to The strategy third quarter our focusing Automotive driven and Global on Connected results validate operating growth businesses. strength Global in were by double-digit and of of fee-based, our long-term

a stakeholders. in We continue all to make more sustainable for building Company progress

highlights a quarter, key few the During included.

the ratings companies. one Assurant companies a all XX,XXX of sustainability participating largest by top time, accreditation of awarded EcoVadis, For first was XX% the writing Assurant among the bronze

our our additional a In transparency to provided inclusive and to we build addition, assurance. progress this on track more diverse journey quarter,

one innovation, key workforce our diverse sustaining provides category ingredient best EEO foster our out-performance We which With race based data ethnicity job a U.S. will our a and report, gender, inclusive for by longer-term. and disclosure employees. of the recent believe to

results catastrophes, and Looking up of excluding adjusted operating compared financial income the net to reportable $XXX $X.XX, $XXX was to in to share, million by excluding performance excluding months share, at profitable XX% increased respectively. and Xth operating outlook our of portable These X our XX% strong, million Net income year-to-date, growth. our net EBITDA, XX% also last of full-year support your year. both consecutive growth catastrophes, marking cats, year operating income XX% per first per

of closer our results of we the top fourth Investor objective quarter expectations half We've our Given XXXX billion also schedule. now our capital expect completed to the year-to-date this quarter, from the return ahead Day, would a end for $X.XX range. year and to X-year

of Preneed shareholders. $XXX an the in to Global on in Following close million the also progress additional August, returning meaningful made sale we've

Our XXXX high purchases. driven EPS income net operating as outlook growth single-digit least by excluding as catastrophe, sharing at is well

Turning performance Automotive in driven grow are adjusted Global by on track XXXX, in business and to double-digits in by from XXXX EBITDA we $XXX Global Living. million our Connected Lifestyle to

base of installed subscribers. in capabilities from and additional clients recurring mobile launching and our cable OEM, carrier offerings revenue globally. benefited mobile stream our stable have And We operator, of retail the success for

of benefited this our be XXXX. returns Group business differentiated we another continue first believe a and year. experience. number protect XX% and for to profitability, service Additionally, the we nearly this are months annualized million delivery growing acquisition In be We million business. year which X over XX% at of catastrophe The on for key further the of returns Housing, one increased Within better-than-market future. of demonstrates and of $XXX in Warranty XX the expanded important operating to losses, increasingly superior growth customer also upgrade Global from businesses Global an trade-in superior vehicles will of options our mobile our since in to differentiated with providing auto the we've scale, in ROE This and continue by includes Automotive, track

business U.S. an Our single-source platform. ongoing lender and experience industry we of mortgage add insurance of integral the enhance place to part clients placed lender processing we in framework Within new existing continue the will remains countercyclical through renew rollout partners, as the our the

since Our XXXX X.X with affinity management U.S. million clients. Company strong ventures the partnerships doubled than multifamily more business across now has our and through supports over property housing and our earnings

and to Keith and president, employees worldwide, assurance. have business significantly now will we continue in detail value transformed enhanced businesses experience continues Our sets long-term portfolio our our investments XXX our With our XX,XXX by quarter. continue I'm capital-light sustained humbled for that key X solution, my in customer Together, should our succeeding Company strengthened experience. a years. digital dedication all, highlights and high-growth, confident January, return Keith? greater deliver above-market value Demmings superior us successfully their serve our an drive our call thank client of of partners we XXX retirement the clients more have supported for to our stakeholders review at last deepening management the high P&C to property Keith our Most as will fee-based, I Overall, apart over turn me through offerings 's to who our to customer cash further opportunity wanted such over to creator superior year-end, capabilities Specialty and relationships. that I'm take outperformer coverage differentiate and Fortune and CEO as With strategy growth our to in shareholders. customers our our have as path strategic accelerate vision Assurant all XXX for and the to flow. of this Assurant I'll million believe

had a transformation supporting of fortunate you, vision front And of to thanks in I've morning, have a his and I Thank seat CEO. On behalf our the to good for and Assurant. sincere to employees, Alan. as Alan's express wanted our everyone. row Alan leadership been role

our impact evolve overall continued has has he mentorship he Alan's our customers, for culture appreciate Company the Importantly, personal his retirement. very wish shareholders. and has of in and partnership best communities, to purpose had value I of drive Company been our and to the people The him And and exemplary. all on stakeholders, employees, the

leadership As connected achieving developed talent our on bench. our diverse we we including around strong build more critical illustrating January, of From Assurant management committee a especially perspective, innovation on few assurance announced refreshed appointments as to new leaders. the and our in A deep momentum over and bench term, will factors a growth, I convergence internal weeks focus talent effective the the ago, consumer. I long and believe be success has X

opportunities Chief Meier, growth, years, COO our year-end. his Assurant's Operating and will most XXXX years Keith strategy superior Keith In as last XX be in last International, new nearly well Keith including growth In succeed driven been producing success retiring at of the leadership President creating over global Since to and X positions, Gene, as Mergelmeyer role, our market-leading Assurant brings Officer, Assurant experience. to deliver across he's customer Gene transforming COO market instrumental International, Asia-Pacific. succeeding this focused as advancing of 's First, the with business a as Gene organization. as years, markets strong in Gene Meier the significant recently as experience have XX+ contributions will be will identifying on Assurant current additional of President at profitable over to role. positions,

and the innovative of Second, transformation he introduction like XX President over EV growth of vehicle been strategy and protection. our products has of will new years Martin Jens currently One, experience, instrumental become electric Global warranty leads our auto With for Automotive. in

growth customer Manny working Connected Becerra with future. best-in-class In as experience, Nair as a as and dealer Innovation committee our our strong addition the to Martin new help These other of into along will and the to as Officer, of improving partners with innovation, lead the to including appointments emerging well focused training. us President represent Chief on two Biju opportunities recent members, appointments be and management team driving Living, deliver

also an Within innovation is organization. new through significant products service our ongoing this a of and important of quarter scale enhancements development only the Living, strength grow but Assurant's In the was offerings new to mobile talent, and addition clients, theme through Not businesses. to digital delivery our Connected for innovation of paths options.

As expanding T-Mobile of services contract we're part provides T-Mobile, continuously to the extension millions improve the recently with multiyear of the finalized Assurant experience for customers. customer

to As XXX approximately the of of by services Assurant provided T-Mobile experts. November stores to with Xst, device Assurant is 's repair in-store repair industry-certified nationwide begin partnering rollout

of subscribers Sprint In legacy protection new we the the also have T-Mobile transitioned to addition, device all offering. protection

delivery service as competitive this result, to options roughly Xst. sustaining adds mobile to the Overall, at critical As million of now significantly advantage. device expansion our a count, of November is our XX our

trade-in, Mobile, a Pocket We multiyear to tech comprehensive protection continuing provide which Spectrum also a recently includes support, device geek premium mobile. signed and with renewal program,

Assurance diagnostic tool. on-device

With the expanding existing to enables various and through we're consumers Pocket This also include another to grow Geek renewal, Privacy, example adding by to of and will information to which the online we their better how offering features. manage personal capabilities clients. protect be services is able

business given as well mobile device continues the reliance rising the on see strong rates attachment to as mobile addition, devices, In prices. increased

early this of trade innings enter performed in year the driven Alegre fee acquisitions upgrade already and cycle. the previous well upgrade we Hyla including business, have Our the XG an of extraordinarily as

year the transaction of EBITDA, report a the the happy ahead performed forward valued was low-teens closed, after to on. of better almost Hyla fact, acquisition acquisition expected than In I'm has the

and continue to we growing XG the of expect availability enabled With and trade-in programs our smartphones, grow. upgrade to see XX-plus popularity

efforts Through our reducing and from so superior phones. manage programs is Our far upgrade scale encourage affordable and year, and programs, as promotional technology. benefit retention. with progress attach nearly and supported we digital XX million additional clients’ source large-scale increasing of further our rates programs improved devices customer consumers profits we through processed trading client have of this trade-in the is for to by our our high-quality, This an e-waste, access demonstrated ability Overall, with upgrade. and increasing to economics capabilities

with to the a Automotive, we to of added scale support we to million and look $X continuing signed including we have pleased with above year-over-year policies to take their talent. of -pandemic analytics, sales XG-enabled help includes with manage are their we as well quarter, direct-to-consumer. and devices. to of client our as In device forward increased the providing well advantage growing continue retail, business do adoption levels a specifically as or channels, trade-in acquisition, and X% is dealer, for This them, and Hyla we extension was device that AT&T processing production and This by pre contract Global BXB, all AT&T collection multiyear key program. as announce

tends to car which visibility the faster So growth, a business future year, with that along from fact multiyear business than period, This far used this the of new provides earn earnings the over benefited business. from also strong performance good recognized has car the into are sales.

auto, within vehicle innovation been now drive America. EV we continue rolled EV we and from in countries. roll the electric has As product hybrid protection out an X out global One North One, of

electric our well learnings to in our to product vehicle allow the infancy, increase adoption vehicle opportunity the its expected demand better still evaluate position and future. us EVX the market leverage While Assurant for customer in is electric in will and

multi-family in our product. as innovative the continue well year-over-year where by as growth PMC policies our Our our grew partners, relationships, CoverXXX housing from of business rollout we X% affinity

future for we digital opportunities addition, create seen In growth. have other investments

makes driving Our significantly newly policy, attachment for sales and it portal, rates. to which residents product for faster designed higher is a up digital sign easier

and has innovation strengthen last that introduced to first now Assurant's momentum to In our increase critical Richard. website future. over continue summary, outlook. the to I year. investments ability to new and call in our and review supported rates has quarter should legacy third versus an results Our Richard by turn seen will was the portal talent drive XXXX conversion for our the

And you, good Thank everyone. Keith. morning,

and reflect growth Housing. we in noted, performance Alan solid strong across Global Global as are pleased Lifestyle with As our results earnings quarter our third

from catastrophes of operating For we up net share, X% reported reportable the $X.XX, prior the per year period. income excluding quarter,

income, the for increased EBITDA and Excluding adjusted $XXX to respectively. and each operating X% million $XXX net million, cats, quarter,

reported of Growth our driven segment the move mobile In let's of The $XXX and Living's including $X million Global XX% increase quarter, operating in to third-party earnings starting mobile continued continued supported Lifestyle. and year-over-year select investment increased or by driven year-over-year. and income ancillary growth Connected led Automotive Now, segment results channels, The business. increased was Global loss XX%. X% income Hyla in and primarily international with in third a continued our expansion earnings or dealer growth increase Global was contributions and earnings in million within from experience from contributions national as Automotive, Asia-Pacific, administrator net global also carrier by channels. products better $X earnings our AFAS Connected subscriber as acquisition and performance Living North OEM in higher volumes higher well quarter. Better by in million America from trade-in growth promotions. by the U.S.

This included modest earnings. one-time that and a quarter, benefit Living Automotive improved results Global also Connected tax

Global Lifestyle For adjusted increased This investments. to increased transactions from the EBITDA also 's depreciation XX% IT from million. the higher more Automotive. stemming expense in $XXX deal-related resulting segment's for quarter, amortization mobile and intangibles reflects increased, recent higher

mobile carrier revenue introductions by Connected mainly subscriber year-to-date from by as new promotions income or by driven growth offset revenues, mid-single-digit growth in and subscribers Hyla. declines by North revenues in supported volumes trade-in domestic by other As $XXX in geographies, XX%, subscribers XG of fee runoff phone including programs. three growth to devices. were flat revenue and was boosted Automotive. Mobile and driven Living, mostly by Trade-in Living introduction by Within were from up volumes, Lifestyle continued was factors. strong at increased was was the Connected we America This look in year-over-year declines slightly from million in due increased that new X%. mobile mobile Higher offset Global contributions

First, mentioned, profitability. to to runoff significant the a European in XXX,XXX previously a is baking our not subscribers expected program impact which be related

revenue our in the quarter prior sales a in elevated recovery third, vehicle slower-than-expected moderating we Asia-Pacific. Automotive, of service period by from year-over-year Industry premium X%, America. and benefited in auto reflected pandemic in Second, And for programs as Latin the Global the written from existing increased growth subscriber reflecting In third this sales contracts. growth net remained trend strong of XX%.

the this to seen normalize trend though beginning began quarter. have We into fourth

$X.X increase For driven the compared Living modestly Lifestyle year's and billion, last by full year, global to revenues expected Connected are auto to growth. mainly

segment income double-digits For Global the at a the operating to income. to grow still continues expect segment to is all grow pace XXXX, of expected year-over-year, we net to Adjusted as operating which EBITDA in single-digits compared for Lifestyle XXXX. faster in net high grow

As capability investment reported, in the previously quarter. T-Mo began repair we in-store this our

and occur We costs to relate of in fourth However, our associated due to meaningfully costs to Connected costs parts rollout, the quarter. as sourcing. the do these Living's start-up impact timing These most of the primarily will we expect technician year. hiring profitability end the

we more XX%. addition, expect a effective our tax return In to approximately level, to normal rate

start-up XXXX, Looking more more moderated as for at and repair. to additional ahead to for implementation to likely growth, expect continue service invest we levels earnings expansion costs including in-store we continue, but

net catastrophe million Moving third to Ida, operating income Including catastrophe $XX million operating Hurricane net $X the quarter. Global excluding Housing, that losses income totaled was $XX pre of -announced mainly for million. from losses,

which returned higher million historical losses, non-CAT losses, averages. $XX to anticipated in line due with catastrophe levels earnings to Excluding decreased more

related from as lender the of severity such this which evenly The the the our lag, as insured from severity. offerings, values well average non-GAAP is of investments and and a lender-placed primarily lower revenue strengthen products. not included moderate trends claims XXXX by close economy revenues, XXXX the to in multi-family as Mainly quarter from reminder, Housing by of as increased driven a our from [Indiscernible] In by of non-CAT if The growth were in there decline continues, driven specialty sharing increase, lower all Trivor, in favorable loss was labor year. reinstatement between Largest was PP&E decline historical point slightly expected higher resulting Where and balance factors. of offset normalization lowest partially unfavorable nearly and growth representative mark customer over loss losses capability. several relatively was well always costs. decreased place. split housing. our material higher business, contributed third loss and in in increased expect the factors, higher P&C housing, ratio. by from premium multi-family by half year-over-year This increased offset REO rates would was Claims experience experience offset last Hurricane lender-place last trend as on-demand within Ida earnings to special premium experience, was As higher digital-first to including we underlying cost and impacts be Global year-over-year account time. inflationary to our specialty further rates volumes reserves

We continue XXXX. year income, full flat the excluding be to to cats net Global to compared for expect Housing's operating

losses we into year-to-date to XXXX, For above with experience, with continue consistent the line non-CAT quarter XXXX XXXX, in be which long-term would expect is and but fourth to trends.

foreclosure net This to and the the million monitor improvement corporate, third any announced. an $XX may by continue million, driven XXXX. also We the additional was $X that At loss two was be to operating moratoriums items. of quarter REO extensions of compared

our And quarter, associated First, timing spend. In loss we expenses, the higher to real and estate third-party due a fourth lower second, expense savings with anticipate fees. of footprint. reducing the employee-related do

million. the from full-year quarter. and driven loss the real approximately now joint year-to-date the one-time million net mainly be estimate we In to second This by our $XX benefits. XXXX, venture For corporate estate previous expect tax compares to the favorable results, of operating $XX

we XXXX, to corporate $XX operating to forward with expect look line closer As more in would trends. million to our be we in net loss historical

million. $XXX of $X.X including Preneed operating proceeds the minimum sale current with our third above quarter, the we the liquidity, Company over billion, segments in ended dividends target well from In net holding level. August the to totaled the quarter from Turning third

and also three $XX our Ventures Assurant items. investments. in addition main share to million dividends, to outflows million $XXX million of mainly expenses, repurchases, from quarterly common interest related stock In $XX corporate we had and

Investor In $X.XX from to $XXX objective, proceeds to completing returning addition return have million roughly billion quarter through our our one of to XXXX, Preneed through also shareholders we objective XXXX a sale Global XXXX Day share completed repurchases. in

the continue three third quarter, Ventures, in capital update investments our SPACs. via overall, the For on we quick our [Indiscernible] venture arm. In Assurant year portfolio in public

growing pleased strong income as in their the SPAC times the portfolio, are the X to terms. combined multiple investment exceeded with through transactions transaction capital broader Ventures $XX investments with We led million after-tax in under on gain results net performance X These quarter. the a respective

addition technologies our connected into also provide businesses. In growth within consumer these emerging and investments strong key capabilities returns, insights to

Before would thank Alan turning take to a last the X his Q&A, I to minute years. over too to partnership like for

addition truly positioning you community, And an to questions. the wish sense, In and values, of best very and in Assurant long-term please all for created representative growth, core Well-deserved. retirement. Operator, that, with environment decency. for success of Alan, our the and inclusion I he's call common common open

[Operator Thank Instructions]. while ask you. is question now do your pose we that pick you The Again, questions. your for floor up that open [Indiscernible] you handset

potential new forced to quarter-end? million relative for per profitability devices new at devices in device just bottom-line [Indiscernible] your those kind the and of $XX

just I for take second. and that Sure. will a Maybe backup

Xst as the of we the very exciting And reached first the is same-unit So, partnership obviously many have years, over time. the customers then extremely on thing with significantly migration I'd repair for pleased future. inside look of along emphasize to had to is XXX is of obviously which multiyear we've extension. the just We're T-Mobile that stores strong T-Mobile Sprint ramping scaled with November

calls, on the obviously is scales clients. when with uncommon over for we case if client the time, previous not which As we've to dramatically particularly forgo major true us it's discussed That's re-contract economics

T-Mobile. with

to able emphasize, see to been, more services. long-term volume of as with And well-positioned is the to economics. at positions. more our profitable and we we normalize detail. that value new will would increase for really result and say our repair additional growth, unit creation we're fully economies point has would goal, -- forward, come market-leading management of to long-term be expect agreement with on within in addition get in our we intend ramped same-unit at vision in-store it the partners When But And focus the as going investors. our -- to business, take offset I that deliver But Day looking do the around back and But the also certainly the invest time, Investor than growth a of repair future. really which with Company of philosophy. in margin organic to maintain pressure some organically we overall the as Sprint additional once per somewhere do performance, scale lower the share But this. around we I As expect as to capital and well. And -- broader we'll obviously,

would that think had then though That Yeah, that the been great generates And I the can if comments the you to Alan, XX have Company. earnings. we've our years. and is we've add to one capital our upstream going this Keith's last we always Company, IPO, holding stewards business back over thing level companies’ business about since a strong very

see I go cash I then any ability the in generate to shareholders. think continue don't leadership changes that's appropriately manage forward, to it Under and going for to major as Keith fully. we

do we've And to of returning million talked remain the balance that the $XXX previously. from we about Preneed committed

of well. intend XX the So, that continue get to Preneed close planned months as of done as the that we within transaction and for

guys. Thanks, Great.

Thank you.

coming Partners. is question Gary Dowling next from Our & with Ransom

morning. Good

cover you morning. couple mean, explain on and I in that of remarks. also -- covered you been your a devices. where the a had years Good flattish of Yes. I we've had devices period prepared on question a it's

I or this roll out we've color XX% or Now to might jump in if roll through next of I'm getting that you over -- unfold trying don't Can this give year? -- and share the any year we rest going might into are just we're an think month, step one that I'm, forward first unusual how of of got next in essentially us know. the of and this it how the so,

Yeah.

see enrolled continue all to Obviously, through add all to going customers continues T-Mobile forward. the is November now Assurant's So, those Sprint effective so volume in accounts. growth continues in partnership we to win as customers' customers migrated marketplace, we'll Xst, to that the new of overall program and of the insurance

more So, this just not services, around really customer a exceptional long-term experience. certainly, over in demonstrated believe fee yield continue And to to we've about, a many the invest create opportunity that much going it's is around as does together growth. more we've products, how terms scaled, of trade the future. delivering can larger we're a customers. economics between there's significantly partnership we we more of to to a And going years, partner opportunities talked for But what's innovate, with for relative unit capabilities, but get interesting now that as our to base per T-Mobile we

Right.

from any there Okay. you where things were much? things internationally mentioned growing other not is as running And or off remaining drag the

No.

business performance back have we we've Europe bit things strong a bit little really that and in growth Latin U.S. over a about long-term regions, in come for do market in good mobile, think the a we're a international out in America, talking I really, the market opened primarily see seen just growth little of up. slowdown specifically to in if of overall, as as and continue couple time. COVID really overall of we've as scale But Japanese

continue growth Global additional might see Is forward. has autos And to in you. in anything thank very growing that those trying covered there there again, is and count that was well. expect gave Automotive And the the that to Okay, might forward? that other numbers going we then Momentum you think through the how statistic

would from production $X pre But you would industry where also I net first over almost from the really above We say began you on -pandemic $X.X I XXXX, really, the X% last so elevated look second XX% saw down to XX% seeing remained levels, a auto at increased from and only over the achieved that strong when results. year. Yeah. up million actually well premium we were quarterly and overall normalize quite sales policies I our it that and would the little But a sales as we're highlight modestly say covered billion quarter. in was lot, was side written QX, of performance. XXXX. up bit

that offset has going taper because off clients been leading our overall been which on obviously around forward are sales. very expect the dramatic elevated certainly have side than by to used constraints So to But new those sales. and of chain doing that's levels supply the would car more volume of the affecting that business, constraints

I you. Lifestyle and in in a mentioned that Global help those of all? premium. the were items didn't that -- numbers in that can of the also were was If Thank benefit quantify the a could squeeze you there are tax couple quantify couple really numbers helped questions, you mentioned housing you reinstatement Are those

$X reinstatement Gary. million. of was think was Yeah. premium, Hi. in that benefit, Good It's the terms Richard. million I about the mean, morning, reinsurance, tax it about $X and I the then

Exactly.

And pretax exclude that does preview, $XX million correct. of reinstatement cuts clear, the just be to not

it the in impact $XX of a quarter $XX reinstatement million terms does. and retention million. was no, premium, you us cut the look the if of numbers we at actually have, total In And the for

either. comes for that that through on So

it. got I

much. very Thanks Okay.

Gary. Thanks,

Thank you.

question next Shimp Tom from Piper from Our Sandler is

Tom. morning, good Hey,

Hi. guys. Good morning,

roll compare of So, cars, those do vehicle. lot to electric transition How about of EVX out the engine? in parts. there's your have -- tech I'm the corresponding they amount moving combustion There's the product thinking but attachment good of do the product compared for internal less to -- rates a this EV

affect do attachment seeing? rates how dynamics those So, that you're the

in really would terms scaling It's electric contract -- around early vehicles, question. of of the great say a it's It's service programs. in terms I

You're correct there. There are less moving parts. There's technology. a lot of

expensive get tend to be Some repaired. to of the very parts

in frequency, little less all see a certainty higher may technology. around the lower consumers the may we of There's So, of we also see the minds severities. reliability of

EVs start So, to and see we really but attaching products And electric early clients more and strong say not it start see services. we evolve vehicles, around, in time. would do market. it's just I we selling expect and to as F&I over our performance will as to more see maturing

the years evolve, will over I this So, quite next few think, dramatically.

Okay.

insurance clients investors mitigate exposure parts lot for right fee sometimes are a now, and you So, extent with automotive as how investor look rate mobile but automotive your I you off have attracted ceded chip businesses typical labor operates think have which Assurant misunderstand and is and the that insurance can global and inflation more on top that Housing of regard in inflation of mind costs inflation, of a it it's where who to a the at operates risk shortages to business in in to basis. risk-based like mobile investors and housing. attention Assurant

investors not So, this the which. exists, degree dynamic understand of I think but

So your in environment. assurances maybe inflationary is an there us how you could give and thoughts increasingly positioned

then big of increases. go we we've at investment you Richard, we then analysis with Yeah. income And and I'll couple a deal team's comments look volatility you're insulated I'll of but the net mean, reinsured I and risk there. terms about, there right. quite have obviously, the we is rate most insured on stunning values, on as all then Richard deals maybe ask Not think shared. that deals, structures of done because lot think and look but at we talked to this seeing his full I been mitigated obviously driver insulated, our opportunities the offer as well lifestyle the be side, And work a the are pretty forward. question, as of in will housing, a based profit or overall. of on are

talk about Richard. that, maybe So

costs increasing claims term, positive, slightly the were sort I mean, a would of Keith neutral and this look points. probably we Sure. on at bit, there. we reinsurance it labor happens, quarter, the at the bolted the say think loss change up I Those I short in long think that ratio. it, little But in fee-based our being Keith. look really at on we're clients what you non-CAT maybe quarter with the term that because -- When severities we mentioned main are have least a over mentioned whole Thanks, I we severities side. And a of

up. risk. There's claims two we advert taking the on So, there's insured P&C then that but on would side we the profitability side place, Lender a on business, where large sharing of go values things happen. housing, where would have that the the are whatever of and

So -- if would to recover see our housing that, insured average be increase we large premiums the of as filings. rate not of to we up the value. our all in a through over would prices go with Also, up part, inflation, able an goes time,

feel an that that interest So, anticipate and income. And our we then would with get quite would obviously investment well. uptick rates we in time, inflation increase insulates would us over we finally

positive. not negative, could we're anything it looking a any overall significant type being of it's small So at neutral be as

your for you Thank answers. Okay.

Thank you.

you. Thank

And from question. is next coming with Brian Meredith UBS. Our

Hey. Brian. Good morning,

morning, morning. Morning,

year. I So, we this forbearance know curious, placement early of on in the towards in kind rates maybe I'm hurt just Housing, see Obviously, Global were end we'd increase an that. thinking of

there? with gone, respect we kind Now your views going that ever a to of to is Will what placement that's -- rates you pick-up? see

modest think quarter, we change this mix. a by in signaled placement rate I Yeah, the driven mainly

to the the time, Customers increase maybe on to equity actively start work the -- expect an keep housing much over so the it's modifications we'd performing. So, we There's I expect home. in loan look strength generally broadly loans the in as I'd with market. positive flat. placement of back rates to 'XX, servicers half modestly see to say would in have borrowers

So, flowing true of affect will side I rate same through. think of activity the placement will thing's certainly, And a from on well that some lot delay as foreclosure REO that business. the

see of coming be that to portfolio. half 'XX our the best start we on second probably So through when estimate would might

And that second PC? happened was in the the increases then in that quarter, specialty reserve curious, related what Great. question, the to just

me we're there. This what a on bit doing is let take little give history Maybe of one and that Alan.

variety property the they their and franchise we our a own of a little So, to And rental a we're and couple things ensuring. have we products, right. rent doing really the experience consumer to auto, on-demand specialty, and build home products there. their to antique we also, really and bit international related the few in what trying of that like following really started years as we we're is have do ago, our in today off And car of own of a

transaction. short-term Your

make it's with -- delivery. and using distribution us. business, channel excited your about directly. or And question car answer what Both So, think a home, you're renting your I'll about that we're food you're new the to for

capabilities, our into we now think interesting around other contracts, renters, delivering of And service our is drive capabilities for rental us that food you or insurance. who particularly rental gig mobile can interesting using their car some then if home. not If products, of as economy. embed are product a you our to our a what's opportunity as think And provide workers services, our to about, the the it's much about an

what the of been we're that's So doing really there. genesis

$X the the think of terms reported prior really this million really but reserve on quarter, claims. it’s development amount affecting maybe, In and I its was

on of of place we've been extensive -- So, And the couple rates so align put that never any years, product of this up our business. experienced we increased it having reinsurance our We've material as expectations. modifying last as to future don't will we we've all think business, and significant gained over this then structures. with to anticipate catch in losses from in

been the business fact, years. us very for it's a couple of over In last well-performing

Got you. get on And it. a it and you assume protections I reinsurance of lot on would

do got it We business are we which structures into us, it's consumer and Auto for around administration trying feed in is generally, same Mobile we really do. making a We've the do to and very thing there manage we and transaction. as strong

look here, revenue margin in subs declining in coming Global and sub, at happening quarter I just the lot question, the when and look guess moving a of in take parts of margins about fourth into into XXXX, last coming business a I my pre so you've the I then curious, business quarter we there's then think as And lower -tax at here about that that think got Lifestyle, kind additional Great. per in. the fourth a investment obviously We going on

Living, as growth and into Living, QX overall last year over over at Lifestyle we think year. third in and for quarter in a to last you up continue expect in see as we growth I profits do look --- QX to saw, strong see significantly Connected Connected And XXXX. had We

about XXXX, we think see really delivering same-unit yeah, need but see that to make but high a that even then moderation Lifestyle to to repair, expect we we're just expect continues I overall. with sure some not investments make that really housing strong QX, the businesses. to additional up, We'll executing So, still standard. and And stand we growth we as think across both and the in

than It's maybe income and that. I I it's hear just but solid growth what good offset right? its top-line think margins, So pressure operating on saying, growth more some still, you

to Correct. to lighter, are a Yeah. The going overall economics strong. look are per going economics unit little going to be are but the

the for much answers best in so Thanks all retirement. your the and Terrific.

Thank you.

Thank you.

is coming Stanley. from from Michael Morgan next question Our Phillips

Hey, (ph). Mike good morning,

everybody. you the Richard, from a the in XQ morning, when impact XQ it Hey. out extended roll And that I guess Anyway meaningful T-Mobile, the next Good Thanks. expenses morning. that quantify about quarter is of into us talked help any -- you B, Good impact. year? fourth or can then just from

Mike. the Thanks Yeah. question, for

of a in and guess say quantifying talked I of terms we've about year, Lifestyle given sort to I aggregate think all an going would aggregate terms we high being indication it, single-digit. is where in we come In of --

at year, Lifestyle look look if view think where we repair the sorry, going is So, a and in really decrease it where for on broadly. you we of give to at increase is the where Connected and Living good investments part service in pretty -- is high that year the and last making single-digits, full came in up we will that we're based and the you to of think, in -- come setting going

be in quarter. the some then in And So next that we year. fourth anticipate will would coming

some there biggest will fourth would be amount say it would terms year. big in of in mean, the of I So, -- of I rolling amount amount this be into year, quarter next

We million ramp fourth quarter. and are thinking quite a up bit into few into the a

in talking doing terms here in it. of are we So, terms millions of

Yeah. And I would add. just

to that continue as recruiting, doing the the over going costs getting and we which addition time ongoing all with the change training, all service In optimize experience. is ramping, also to we're inevitably of work the build-outs just to the done, evolve the will the that T-Mobile really to and evolution there startup hiring, deliver

in investments investing completion, supporting to make some expect sure seamlessly to as delivering our rollout services do XXXX, ramping partly that also I in we're technology possible. execution So, and the but

of to some see our part as business going this definitely investments would you So, forward. we expect shape continue to

then. of Okay, Two that quick sense. makes more kind I ones, guess

future said costs talked the Richard, you I that if a things material Does there, of or out? in continue, follow-up. that severity pricing -- by higher if a that I time. guess you waiting could still plays and labor and about think continue the over see that quite things obviously bit. offset in be rates how for the kind to currently you're said mean that On

year Some increase of it's we refer in I insured contracts, currently Every we get coming what to value. an our as average through. -- what

over quarter. time in we we look premiums get one the and years. some that. on rate file about based a When talking from contracts. trends in was rates, a inflation. increase I the of put in we over it's filing at the the embedded that's do can't for filing, We averages When overall And one, So rate couple

ratio. impact loss it. there, and referring for an non-CAT we to So you And the to It really in is to would time to -- happen in then that's lasting come was on need get have it would need over the inflation then Mike. what put and come would I

offset lag So, I there would what be is a was is saying. but over it time,

-attacks on this? Okay. one. from mobile That -- in I sense. numbers guess sub the quarter cyber T-Mobile the any sub like makes Was your last quick impact on

mean, aware or have and don't we of Now, I would we're saw. nothing that of we I that base say a had of. think we anything strong really I'm we that note I customers aware -- of meaningful saw

guys. you, Thank Okay.

Thank you.

Mark from coming is question next Our with Truist Hughes Securities.

morning, Mark. Good

Mark.

Congratulations, Alan. Good morning. you. Yes. Thank

you. Thank

me Is reimbursement? that The that kind of per -- refresh it device? you in-store business T-Mobile, does revenue time materials? is and Hourly it How on model the repair can work? for the

and within overall our perform. the risk than have from great management a -- to performed getting we that -- It's question. ourselves really to of we've don't business paid how levels program, and then would the those fee of It's profitability. the around drive the income as other labor fees we from got and it stated get parts manage labor think we I And for oriented, for

a So, financial around motivated deal store. I and an it's And experience really, exceptional really interest it's well-structured very in very delivering the are think aligned. our

So, not I that the really to how about deal T-Mobile industry. with really just we're feel together together the but good change working we put

available? be going advertising prepare customer know it? to How they to is And the capabilities are that are going

claim within manage subscribers. what obviously T-Mobile consumers base the that's process we the Well, and now entire

we'll get option to them be advantage take best available done. really customers to repairs as to the that's directing appropriate So, of

but I largely through will T-Mobile awareness our flow, etc. also through be it claims campaigns, So, think

add Anything this I to throw to then even levels, referred might you to strong you about Richard, And more XXXX. XXXX. Earnings a at think also adjectives all have to else or you expansion any you're when addressed continue numbers in but maybe moderate I that? growth degree, though more think want to talking you

the jump Day, call, in across I of elsewhere -- mobile really the mobile. talk be I domestically heard Steve the also, in contract, pleased whether we're business. to the -- businesses, are wouldn't we're it we're the when the in and that we're in we things. outlook T-Mobile, seeing two I where we and Investor year, Auto. say really our and next And would Japan growth want mean, in with guess I other Global our extension set housing about that the U.S during growth

we to be bottom do see with You that a seem at rates. placement

and a will slow up. end, period take it Now, the when will forbearance Foreclosure be

headwinds multi-family without I in in leadership. to grow well-positioned Keith Having invest really not ourselves position as in over terms we XXXX. in feel it's put business we think said that, a us and Alan's think for our I and interest to or of good still are as continue But we're we like future to to good totally. inflation. continue where rates some business so We Keith's mentioned, need the about under And succeed in a we're housing,

you. Thank

you. Thank

question Jeff from Blair. William next Schmitt, from Our is coming

Hey, good Jeff. morning,

of driven was the the morning. due growth being the a highlight to comparison income in acquisition? mix to, that Living how much cycle by in is of added increase to Good upgrade versus weak kind XG just Connected of How organic curious Hyla but there's much maybe fee Obviously,

I exceptionally would say Hyla's been well. performing

We've close, rates significant look pent-up used. at are trading promotions since Increasing what's the obviously think demand attach and as significantly. of main the not coming happened where volumes XG being I are client trade-ins just just pandemic. up seen from So, we incentive demand out

we than performance talked the about acquisition based better modeled of we So, XX% on the 'XX.

So, think that's as overall, major you we're more talked volumes working, our assurance. about and really high XX a combining for total, full-year of about compares we then the XX process, how going, but a well land devices overall relationship that's And integration, thrilled ability XXXX, to with the how that million excited renewal far about million it's obviously so significant with to in That than year. AT&T. protect this talent,

big are a side And trends trading on growth clients also of legacy but business market. driver and call income, across as as the the high-low across seen similar yes, I the assurance happening what we've of well. would fee So

global the a it's in trading market. really So, time strong for

now? I capabilities in the the much managing Did bit by if current how few them, that capabilities on rolling then of right same-day curious it of T-Mobile affected touched those know just touched that And with it quite you've how Great. environment. but a Okay. -- labor on service you a ago you're like. sounds out days here being shortages don't

well but in our it get we've put would there of really aren't trying Our what to right partnered to done country. the to have we're the in markets the incentives our the say make acquire working talent. as around best that third-parties course to well. months, partnered been many on recruiters that T-Mobile this as some incredible Not various labor It's happen. place with, has team of worked the challenges for really are with team, there I an say We've well have, job. teams

you. Thank Great. Okay.

Thank you.

from Our Bank Carter last America. is coming of question with Grace

Grace. morning, Good Hey.

if lot wondering, in that looking a if environment of talked sort in mobile more We've inflation have prices. of Hi. attachment any one tangible on rising we're up at, that rates higher a all, of we was seen that impact from them see devices, impact think inflationary I rates attachment inflation, at going you about the this structural being bit impact tailwinds pricing, to should the to driving forward? continue or any you've extent that kind of and

shift auto that's on a the maybe a side about a of really would question. you bit say if mix I think Yeah, great little more point.

protecting also vehicle at the tend seen new higher rates higher side, which used than slightly So cars. value And used we've attach a accelerating car to obviously on makes likelihood. the cars

pretty bit So, shift is I benefiting the we board. attach strong have which seen overall rate. mix a broadly a little the there steady, across would say though, pretty of

would So, I but nothing being a signal really dramatic, results. that certainly good as strong

years. rates attachment kind long-term attachment ceiling high the an rates can And Okay, of is devices past a thank follow-up then seen of there that kind over you. I just how to across Do go? I quick up guess? that, eventual and we've you mobile the mean, cars think on there, target going several what's

market, I by geography. varies think by it

levels on got attach of demand based higher consumer just at robust attach I consumer we're markets levels. definitely we've -- Some broadly. think rates perception,

think still they I certainly. could over up time, go

and our years products important today the convenient the service The them and it value consumers ago. to I and was delivery think options the a than much to for awareness more for the proposition continues how improve. for programs, services few

can certainly attach look drive in but in a I so I if in growth more or really future, in mature markets. upside of think more still rates the nascent markets. emerging at some of opportunity robust more And elements all those then the

Thank congrats Alan. to you and

you thank right, Grace. All

today's meantime, hold on more March you participating to 's in summary, details follow-up be will and January delivering any XXXX at also the in while officially for end February. hard to in a about with to all. opportunities expect you In very have Suzanne the progress look our In taking in and questions. forthcoming pleased work and role and Day, we the our months everyone have call. call shareholders. out on (ph) we the we're you ahead. and our Gene Assurant excited fourth CEO partners, performance, to the on Virtual forward updating weeks with XXth which quarter day. Investor for serve consumers please Thank year-to-date I We're reach our Thank great And in Shepherd anticipating Mergelmeyer our we're results earnings

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