Q4 2021 Assurant Inc Earnings Call

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Okay.

Speaker 1: Welcome to Assurance fourth quarter and full year 2021 conference call and webcast. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions following management's prepared remarks.

Welcome to assure Inc, fourth quarter and full year 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 your questions. Following management's prepared remarks.

Speaker 1: If you would like to ask a question at that time, please press star 1 on your touch tone phone.

If you would like to ask a question at that time. Please press star one on your Touchtone phone.

Speaker 1: If at any point your question has been answered, you may remove yourself from the queue by pressing star 1 again. We ask that you please pick up your handset to allow optimal sound quality.

If at any point. Your question has been answered you may remove yourself from the queue by pressing star one again.

We ask that you please pickup your handset to allow optimal sound quality.

Speaker 1: Lastly, if you should require assistance, please press star 0. It is now my pleasure to turn the floor over to Suzanne Shepherd, Senior Vice President of Investor Relations and Sustainability. You may begin your conference.

Lastly, if you should require assistance please press star zero.

It is now my pleasure to turn the floor over to Suzanne Shepherd Senior Vice President of Investor Relations and sustainability you may begin your conference.

Thank you operator, and good morning, everyone. We look forward to discussing our fourth quarter and full year 2021 results with you today.

Speaker 2: Thank you, operator, and good morning, everyone. We look forward to discussing our fourth quarter and full year 2021 results with you today. Joining me for Assurance Conference call are Keith Demings, our president and chief executive officer, and Richard Giazzo, our chief financial officer.

Joining me for Assurance conference call are Keith <unk>, our President and Chief Executive Officer, and Richard <unk>, Our Chief Financial Officer.

Speaker 2: Yesterday, after the market closed, we issued a news release announcing our results for the fourth quarter in full year 2021. The release and corresponding financial supplement are available on Assurance.com.

Yesterday after the market closed we issued a news release announcing our results for the fourth quarter and full year 2021.

The release and corresponding financial supplement are available on Assurant Dot com.

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

Speaker 2: We'll start today's call with remarks from Keith and Richard before moving into a Q&A session.

Speaker 2: Some of the statements made today are forward-looking. Forward-looking statements are based upon our historical performance and current expectations and are subject to risks, uncertainties, and other factors that may cause actual results to differ materially from those contemplated by these statements.

Some of the statements made today are forward looking forward looking statements are based upon our historical performance and current expectations and are subject to risks uncertainties and other factors that may cause actual results to differ materially from those contemplated by these statements.

Speaker 2: Additional information regarding these factors can be found in yesterday's earnings release, as well as in our FCC report.

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

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

Speaker 2: During today's call, we will refer to non-GAAP financial measures, which we believe are important in evaluating the company's performance.

Speaker 2: For more details on these measures, the most comparable GAAP measures , and a reconciliation of the two, please refer to yesterday's news release and financial supplement. I will now turn the call over to Keith.

For more details on these measures the most comparable GAAP measures and a reconciliation of the two please refer to yesterday's news release and financial supplement.

I will now turn the call over to Keith.

Thank you Suzanne and good morning, everyone.

Speaker 3: As I begin my tenure as CEO , I'm extremely proud of the opportunity to lead our nearly 16,000 employees across the world as we support consumers' ever-connected lifestyles.

As I begin my tenure as CEO I am extremely proud of the opportunity to lead our nearly 16000 employees across the world as we support consumers' ever connected lifestyles.

Speaker 3: As I reflect on assurance transformation over the past several years, not only have we evolved our business model, but also significantly expanded the breadth of our offerings and our customer base. Today, Assurance represents a cohesive group of higher-growth, service-oriented businesses serving more than 300 million consumers globally.

As I reflect on assurance transformation over the past several years not only have we evolved our business model, but also significantly expanded the breadth of our offerings and our customer base.

Today Assurant represents a cohesive group of higher growth service oriented businesses, serving more than $300 million consumers globally.

Speaker 3: Collectively, our connected consumer and special E.P. and C. businesses have generated and are expected to drive continued profitable growth and strong return.

Collectively our connected consumer and specialty P&C businesses have generated and are expected to drive continued profitable growth and strong returns.

Speaker 3: As we position Assurance for 2022 and beyond, we see compelling opportunities to sustain growth, particularly with the convergence of the connected consumer in the global markets and geographies in which we operate.

As we position Assurant for 2022, and beyond we see compelling opportunities to sustained growth, particularly with the convergence of the connected consumer and the global markets and geographies in which we operate.

Speaker 3: Continued success will require us to deliver on our vision for the future to empower leading brands to connect, protect, and support their customers connected lifestyles.

Continued success will require us to deliver on our vision for the future to empower leading brands to connect protect and support their customers connected lifestyle.

Ongoing investments in our people and capabilities will enable us to meet our customers' how where and when they want to be met.

Speaker 3: Ungoing investments in our people and capabilities will enable us to meet our customers how, where and when they want to be met. Differentiating our offerings through a superior customer experience.

Differentiating our offerings through a superior customer experience.

Continuously adapting to the changing needs of the connected consumer will be critical to achieving our long term growth.

Speaker 3: Continuously adapting to the changing needs of the connected consumer will be critical to achieving our long-term growth.

Speaker 3: To continue to capture new opportunities, I believe success will require more than ever our focus on five priorities.

To continue to capture new opportunities I believe success will require more than ever our focus on five priorities.

Speaker 3: First, attracting, retaining and developing the best talent to unlock future potential.

First attracting retaining and developing the best talent to unlock future potential.

Speaker 3: Second, delivering a superior digital first customer experience.

Delivering a superior digital first customer experience.

Third deepening our strong partnerships with major clients and prospects worldwide, while also developing offerings and capabilities that continue to differentiate assurant.

Speaker 3: Third, deepening our strong partnerships with major clients and prospects worldwide, while also developing offerings and capabilities that continue to differentiate assurance.

Fourth accelerating the pace of innovation and prioritizing the necessary investments across our operations and technology.

Speaker 3: Fourth, accelerating the pace of innovation and prioritizing the necessary investments across our operations and technology.

Speaker 3: And finally, continuing to further embed and support sustainability and inclusivity for the benefit of all stakeholders and the communities in which we operate.

And finally, continuing to further embed in support sustainability and inclusivity for the benefit all stakeholders and the communities in which we operate.

And already this year, we've made progress in our continued objective to build a more sustainable assurant.

Speaker 3: And already this year, we've made progress in our continued objective to build a more sustainable assurance.

Speaker 3: I'm proud of our recognition by CDP on our environmental impact and commitment and our continued inclusion in the corporate equality and Bloomberg gender equality indices.

Proud of a recognition by CDP on our environmental impact and commitment and our continued inclusion in the corporate equality and Bloomberg gender equality indices.

Speaker 3: I want to take a moment to highlight our lifestyle and housing businesses and how we successfully executed our strategy throughout 2021.

I want to take a moment to highlight our lifestyle and housing businesses and how we successfully executed our strategy throughout 2021.

Within connected living our mobile device lifecycle management solution has enhanced our ability to introduce value added services and capabilities to monthly device protection plans and trade in and upgrade programs.

Speaker 3: Within Connected Living, our mobile device lifecycle management solution has enhanced our ability to introduce value-added services and capabilities to monthly device protection plans and trade-in and upgrade programs.

Speaker 3: This has helped expand our market share and further differentiate our offerings. We now cover almost six...

This has helped expand our market share and further differentiate our offerings.

We now cover almost 63 million mobile devices.

Speaker 3: A figure that's doubled since 2015 and increased 18% in 2021 alone.

Figure that's doubled since 2015 and increased 18% in 2021 alone.

Speaker 3: At your end, we launched a partnership with Deutsche Telekom in Germany to provide an innovative mobile phone, device protection program, and trade in program.

At year end, we launched a partnership with Deutsche Telekom in Germany to provide an innovative mobile phone device protection program and trade in program.

Speaker 3: Assurance has already been recognized by Deutsche Telekom for our commitment to sustainability with a hashtag green magenta label highlighting how our products and services make a positive climate contribution and reflect a responsible use of resource.

Assurant has already been recognized by Deutsche Telekom for our commitment to sustainability with a hash tag Green Magenta label, highlighting how our products and services make a positive climate contribution and reflect a responsible use of resources.

Speaker 3: This is another example of further integrating ESG into assurance business operations and offerings worldwide to drive more value for our partners and for our consumers.

This is another example of further integrating ESG into assurance business operations and offerings worldwide to drive more value for our partners and for our consumers.

Throughout the year critical investments continue to drive growth and differentiate the customer experience.

Speaker 3: Throughout the year, critical investments continue to drive growth and differentiate the customer experience.

Speaker 3: Our trade and an upgrade business now inclusive of high-level mobile drove exceptional performance, processing over 25 million devices, supported by the rollout of 5G, as well as our repair, asset disposition, and technology capabilities.

Our trade in and upgrade business now inclusive of highly mobile drove exceptional performance.

<unk> over 25 million devices supported by the rollout of <unk> as well as our repair asset disposition and technology capabilities.

Speaker 3: We recently expanded our longstanding partnership with Telephonica to provide a comprehensive device trade-in program across several key countries in Europe and Latin America, where Telephonica is a market leader.

We recently expanded our long standing partnership with Telefonica to provide a comprehensive device trade in program across several key countries in Europe , and Latin America, where telefonica as a market leader.

Speaker 3: The program will enable Telephonica to access our leading trade-in technology.

The program will enable telefonica to access our leading trading technology.

Speaker 3: We also continue to integrate mobile service delivery options into our offerings through CPR's local same day capability and the come-to-you repair capability to our acquisition of FICS.

We also continued to integrate mobile service delivery options into our offerings through <unk> local same day capability and to come to your repair capability through our acquisition of fixed.

Speaker 3: Demonstrating our commitment to improving the customer experience, CPR by Assurance ranked first in the 2022 entrepreneurial franchise 500 for Electronics Repair.

Demonstrating our commitment to improving the customer experience CPR by Assurant ranked first in the 2022 entrepreneurial franchise 500 for electronics repair.

Speaker 3: This is a testament to the success of our CPR franchisees and our commitment to provide customers with exceptional experiences, services, and support.

This is a testament to the success of our CPR franchisees and our commitment to provide customers with exceptional experiences services and support.

Speaker 3: And we successfully executed on the major rollout of the in-store repair capability to nearly 500 T mobile store locations nationwide, showcasing our ability to adapt to rapidly changing consumer preferences.

And we successfully executed on the major rollout of the in store repair capability to nearly 500 T mobile store locations nationwide.

Okay, so our ability to adapt to rapidly changing consumer preferences.

Over a period of five months, we recruited trained and deployed nearly 2000 technicians to deliver a seamless experience to T mobile customers in store, while also converting approximately 10 million sprint subscribers to assurant the.

Speaker 3: Over a period of five months, we recruited, trained and deployed nearly 2,000 technicians to deliver a seamless experience to T-Mobile customers in-store, while also converting approximately 10 million sprint subscribers to a shunt. The in-store repair rollout will continue in 2022 as we further enhance the overall experience for T-Mobile customers.

The in store repair rollout will continue in 2022 as we further enhance the overall experience for T mobile customers.

Speaker 3: Turning to our global automotive business, where we also have a strong track record of growth and innovation, we've continued to capture market share and see significant opportunities ahead.

Turning to our global automotive business, where we also have a strong track record of growth and innovation, we've continued to capture market share and see significant opportunities ahead.

Speaker 3: In 2021, we grew global protected vehicles by 10% to nearly 54 million and increased net operating income by 21%.

In 2021, we grew global protected vehicles by 10% to nearly 54 million and increased net operating income by 21%.

Speaker 3: The auto business is critical to the long-term success of Assurance, and we should continue to benefit in the future from increased scale through our alignment with industry leaders and our ability to support customers through digital channels.

The auto business is critical to the long term success of Assurant and we should continue to benefit in the future from increased scale through our alignment with industry leaders and our ability to support customers through digital channels.

Turning to renters.

Speaker 3: The business group policies and revenue by 7% in 2021. A testament to strong affinity and property management company channel relationship.

The business grew policies and revenue by 7% in 2021.

Testament to strong affinity and property management company channel relationships.

Speaker 3: We also secured multi-year renewals with two top 10 property management companies.

We also secured multi year renewals with two top 10 property management companies.

Technology and innovation are critical components to our success in this business and we'll continue to invest in our technology over the next several years to further enhance the customer experience for our $2 6 million policyholders.

Speaker 3: Technology and innovation are critical components to our success in this business and will continue to invest in our technology over the next several years to further enhance the customer experience for our 2.6 million policyholders.

Speaker 3: Investments in 2021 include the continued rollout of COVER 360, launching new customer-facing sales portals and expanding self-service capabilities that leverage machine learning to enable automation and claim payment.

Investments in 2021 included the continued rollout of cover 360, launching new customer facing sales portals, and expanding self service capabilities that leverage machine learning to enable automation of claim payments.

Ultimately our investments should increase policy attachment rates, which have not yet hit mature level throughout the industry.

Speaker 3: Ultimately, our investment should increase policy attachment rates, which have not yet hit mature levels throughout the industry.

Additionally, in our attractive P&C offerings, including lender placed insurance.

Speaker 3: Additionally, in our attractive P&C offerings, including lender-place insurance, maintain our market-leading position with large US servicers and banks, tracking over 30 million loans.

We have maintained our market leading position with large U S servicers and banks tracking over $30 million loans.

Speaker 3: Last year alone we renewed 10 clients and partnered with two new clients.

Last year alone, we renewed 10 clients and partnered with two new clients.

Speaker 3: As we look to 2022, we'll continue investments in operations such as our customer-centric single-source processing platform, differentiating our tracking capabilities and improving efficiency.

As we look to 2022, we'll continue investments in operations, such as our customer centric single source processing platform differentiating our tracking capabilities and improving efficiency.

Speaker 3: Overall, I'm pleased that our businesses have delivered on our commitments for 2021, as we delivered value for our clients and customers. We also further demonstrated the resiliency of our unique business model as we navigated the pandemic and managed inflationary pressures.

Overall I am pleased that our businesses have delivered on our commitments for 2021, as we delivered value for our clients and customers. We also further demonstrated the resiliency of our unique business model as we navigated the pandemic and manage inflationary pressures.

Speaker 3: Excluding reportable catastrophes, we generated 14% earnings per share growth on the high end of our expectations.

Excluding reportable catastrophes, we generated 14% earnings per share growth on the high end of our expectations.

Speaker 3: Net operating income, also excluding cats, grew by 11% to $672 million. Making 2021 our fifth consecutive year of profitable growth.

Net operating income also excluding cats grew by 11% to $672 million, making 2021, our fifth consecutive year of profitable growth.

Speaker 3: Our balance sheet remains strong. Combined, our businesses contributed a total of $729 million in dividends to the holding company, representing approximately 100% of segment earnings.

Our balance sheet remained strong combined.

Combined our businesses contributed a total of $729 million in dividends to the holding company representing approximately a 100% of segment earnings.

Speaker 3: This allowed us to return a total of $1 billion in share repurchases and common stock dividends and complete our three year $1.35 billion capital return objective.

This allowed us to return a total of $1 billion in share repurchases and common stock dividends and complete our three year $135 billion capital return objective.

Speaker 3: In addition, we completed 60% of the $900 million we committed to return through share repurchases as part of the sale of our pre-need business. We anticipate returning the remainder by the end of the second quarter.

In addition, we completed 60% of the $900 million, we committed to return through share repurchases as part of the sale of our preneed business.

We anticipate returning the remainder by the end of the second quarter.

Next I'd like to review some initial thoughts for 2022.

Speaker 3: As we look ahead to sharing our long-term vision, strategy, and financial objectives that investor day in March, we can make an even more compelling case for the future.

As we look ahead to sharing our long term vision strategy and financial objectives at Investor Day in March we can make an even more compelling case for the future.

Speaker 3: Given our ongoing shift to more service-oriented fee-based businesses, we believe adjusted EBITDA rather than net operating income is a better representation of how to evaluate our operating performance for the enterprise and segments.

Given our ongoing shift to more service oriented fee based businesses, we believe adjusted EBITDA rather than net operating income is a better representation of how to evaluate our operating performance for the enterprise and segments.

In 2021, adjusted EBITDA, excluding cats increased 9% to $1 1 billion driven.

Speaker 3: In 2021, adjusted EBITDA, excluding cats increased 9% to $1.1 billion, driven by strong results in global lifestyle, particularly in global automotive and connected living, as well as a lower corporate law.

Driven by strong results in global lifestyle, particularly in global automotive and connected living as well as a lower corporate loss.

Speaker 3: In 2022, we expect growth in adjusted EBITDA XCATs of 8 to 10 percent, a reflection of the strength of our business portfolio.

In 2022, we expect growth in adjusted EBITDA ex cats of 8% to 10% a reflection of the strength of our business portfolio.

Speaker 3: Within global lifestyle, we expect adjusted EBITDA to increase by low double digits, but likely not exceed the 12% growth we had in 2021.

Within global lifestyle, we expect adjusted EBITDA to increase by low double digits, but likely not exceed the 12% growth we had in 2021.

Speaker 3: Saving growth will be driven by connected living, particularly mobile, even as we make strategic investments to support new business, including continued investments in our in-store mobile repair capabilities.

Segment growth will be driven by connected living particularly mobile even as we make strategic investments to support new business, including continued investments in our in store mobile repair capabilities.

Within global housing adjusted EBITDA, excluding cats is expected to grow mid to high single digits, driven primarily by lender placed from higher average insured values operating efficiencies and improved results in specialty offerings.

Speaker 3: Within global housing, adjusted EBITDA, excluding cats is expected to grow mid to high single digits, driven primarily by lender placed from higher average insured values, operating efficiencies, and improved results in specialty offerings.

Speaker 3: Our corporate segment is expected to generate a loss of approximately $105 million of adjusted EBITDA, which is in line with our historical levels.

Our corporate segment is expected to generate a loss of approximately $105 million of adjusted EBITDA, which is in line with our historical levels.

Cash flow generation is also expected to remain strong and is a core component of assurance financial profile, allowing us to continue to invest in and transform this company.

Speaker 3: Cash flow generation is also expected to remain strong, and is a core component of assurance financial profile, allowing us to continue to invest in and transform this company.

Speaker 3: As we look at our capital management priorities going forward, we'll continue to be strong stewards of capital.

As we look at our capital management priorities going forward, we will continue to be strong stewards of capital.

Speaker 3: Our goal is to continue to maximize long-term value creation through discipline capital deployment, while also maintaining our investment grade and financial strength ratings.

Our goal is to continue to maximize long term value creation through disciplined capital deployment, while also maintaining our investment grade and financial strength ratings.

Speaker 3: Given the attractive business opportunities we see ahead, we expect a more balanced capital deployment mix, targeting compelling investments to drive long-term growth, whether organic or through M&A, as well as ongoing return of capital to shareholders.

Given the attractive business opportunities. We see ahead, we expect a more balanced capital deployment mix targeting compelling investments to drive long term growth, whether organic or through M&A as well as ongoing return of capital to shareholders.

Speaker 3: We believe this combination will enable us to sustain above market profitable growth and generate significant value for our shareholders.

We believe this combination will enable us to sustain above market profitable growth and generate significant value for our shareholders.

Speaker 3: We recognize that for periods of time, this may result in higher than average levels of holding company liquidity to ensure we have the flexibility to make investments that generate compelling returns, while also returning capital mainly through buybacks, given the attractiveness of our stocks.

We recognize that for periods of time. This may result in higher than average levels of holding company liquidity to ensure we have the flexibility to make investments that generate compelling returns. While also returning capital mainly through buybacks given the attractiveness of our stock.

Speaker 3: Lastly, I wanted to acknowledge and thank all who have supported my transition to CEO over the last several quarters. Your feedback and ongoing dialogue has been incredibly valuable as we collectively look to build upon the success of Assurance for the future. And I want to thank our employees around the world for their extraordinary efforts in 2021.

Lastly, I wanted to acknowledge and thank all who have supported my transition to CEO over the last several quarters your feedback and ongoing dialogue has been incredibly valuable as we collectively look to build upon the success of assurant for the future.

And I want to thank our employees around the world for their extraordinary efforts in 2021.

Speaker 3: a year in which again outperformed despite the challenges of the pandemic.

Year end, which again outperformed despite the challenges of the pandemic.

Speaker 3: I will turn the call over to Richard to review the fourth quarter results, our 22 outlook and business trends. Richard?

I will turn the call over to Richard to review the fourth quarter results, our 'twenty two outlook and business trends Richard.

Thank you Keith and good morning, everyone as.

Speaker 3: Thank you, Keith, and good morning, everyone. As Keith noted, we're pleased with our performance in 2021, which continued to reinforce the strength of earnings and cash flow generation of our businesses.

As Keith noted, we're pleased with our performance in 2021, which continue to reinforce the strength of earnings and cash flow generation of our businesses.

Speaker 3: For the fourth quarter, we reported net operating income per share, excluding reportable catastrophes of $2.49, up 21% from the prior year period.

For the fourth quarter, we reported net operating income per share excluding reportable catastrophes of $2 49.

Up 21% from the prior year period.

Speaker 3: excluding gas and then operating income for the quarter to $144 million. And adjusted EBITDA amounted to $245 million. A year over your increase of 16% and 8% respectively. Now let's move to segment results.

Excluding gas net operating income for the quarter totaled $144 million and adjusted EBITDA amounted to $245 million a year.

Year over year increase of 16% and 8% respectively.

Now, let's move to segment results, starting with global lifestyle.

Speaker 3: The segment reported that operating income of $108 million in the fourth quarter, a year over year increase of 23%.

The segment reported net operating income of $108 million in the fourth quarter.

Year over year increase of 23%.

Speaker 3: Growth was driven by strong performance in global automotive and connected living.

Growth was driven by strong performance in global automotive and connected living.

Speaker 3: In global automotive, earnings increase $12 million, or 29% from fourth quarter 2020. The increase is based on three main items, including first continued organic growth across distribution channels, mainly in the US, and including AFAS contributions.

In global automotive earnings increased $12 million or 29% from fourth quarter 2020.

The increase is based on three main items, including first <unk>.

Continued organic growth across distribution channels, mainly in the U S and including a Fas contributions.

Speaker 3: second, better loss experience from select and silvery products. And third, I-

Second that our loss experience from selecting slurry products.

And third higher investment income.

Connected living earnings increased by $9 million or 21% year over year more than offsetting the implementation costs associated with the initial deployment of in store device repair services with T mobile.

Speaker 3: Connected living earnings increased by $9 million or 21% year over year. More than offsetting the implementation costs associated with the initial deployment of in-store device repair services with T-Mobile.

These costs are primarily related to technician hiring and parts sourcing and will further impact connected living earnings in 2022, as we continue investing in our in store capabilities.

Speaker 3: These costs are primarily related to technician hiring and parts sourcing and will further impact connected living earnings in 2022 as we continue investing in our in-store capabilities.

Speaker 3: The fourth quarter increase in connected living was primarily driven by three items. Higher trade-in volumes, including a full quarter of contributions from high-level and carrier promotions.

The fourth quarter increase in connected living was primarily driven by three items higher trading volumes, including a full quarter of contributions from high level and carrier promotions.

Speaker 3: Higher international earnings, including improved performance in Europe and Asia Pacific, and continued more with subscriber growth in North America, including growth from our cable operator partners.

Higher international earnings, including improved performance in Europe , and Asia Pacific and continued mobile subscriber growth in North America, including growth from our cable operator partners.

Speaker 3: this quarter, connected living and global automotive results, also included a modest tax benefit and improved earnings.

This quarter connected living and global automotive results also included a modest tax benefit and improved earnings for.

Speaker 3: For the quarter, life's thousands adjusted, but it increased 16% to $159 million.

For the quarter lifestyles, adjusted EBITDA increased 16% to $159 million.

Speaker 3: Adjusted EBITDA eliminates the segment's increased IT depreciation from higher investments, as well as amortization resulting from higher deal related and gangeables, from the more recent transactions in mobile and global automotive.

Adjusted EBITDA eliminates the segments increased depreciation from higher investments.

As well as amortization, resulting from higher deal related intangibles from the more recent transactions mobile and global automotive.

As we look at revenues lifestyle revenues increased by $168 million or 9%.

Speaker 3: As we look at revenues, lifestyle revenues increased by $168 million or 9%. This was driven mainly by continued growth in global automotive and connected living.

This was driven mainly by continued growth in global automotive and connected living.

Speaker 3: In global automotive, revenue increased 12%. Reflecting strong prior period sales of vehicle service contracts across all distribution channels.

In global automotive revenue increased 12%, reflecting strong prior period sales of vehicle service contracts across all distribution channels.

Speaker 1: In the U.S., we saw continued expansion from our national Vila network and third party administrators, while we benefited internationally from higher volumes with OEMs.

In the U S. We saw continued expansion from our National dealer network and third party administrators, while we benefited internationally from higher volumes with Oems.

As expected our net written premiums are key sales metric continue to normalize compared to the third quarter, but remain elevated.

Speaker 3: As expected, our net-written premiums, a key sales metric, continue to normalize compared to the third quarter, but remain elevated. We expect continued normalization into 2022.

We expect continued normalization into 2022.

Within connected living revenue increased 7%, primarily due to mobile fee income that was driven by strong trading volumes, including contributions from high level.

Speaker 3: Within connected living, revenue increased 7%. Primarily due to mobile fee income that was driven by strong trading volumes, including contributions from high-level.

Speaker 3: Trade and bonds continue to be elevated in the fourth quarter, supported by new phone introductions and carrier promotions from the introduction of 5G devices.

Trading volumes continued to be elevated in the fourth quarter supported by new phone introductions and carrier promotions from the introduction of <unk> devices.

High revenue growth and domestic mobile subscribers was offset by declines in runoff mobile programs previously mentioned.

Speaker 3: Hi revenue growth in domestic mobile subscribers was offset by declines in runoff mobile programs previously mentioned

Speaker 3: For the year, mobile subscribers grew 18% to nearly 63 million, driven by growth in North America, including the transition of legacy sprint subscribers.

For the year.

Mobile subscribers grew 18% to nearly $63 million driven by growth in North America, including the transition of legacy sprint subscribers.

Speaker 3: Excluding the spring transition, our North American device count continued to grow to healthy pace. And was up 8 percent off setting declines in other regions.

Excluding the sprint transition, our North America device count continued to grow at a healthy pace and was up 8% offsetting declines in other regions.

Speaker 1: Looking ahead to 2022, we expect global lifestyle adjusted EBITDA to increase by low double digit.

Looking ahead to 2022, we expect global lifestyle, adjusted EBITDA to increase by low double digits.

Speaker 3: Growth will be mainly driven by connected living and particularly mobile, from continued global expansion and existing and new clients and across device protection and trade-in and upgrade programs.

Growth will be mainly driven by connected living and particularly mobile from continued global expansion in existing and new clients and across device protection and trade in and upgrade programs.

Speaker 3: Given the strategic investments we're making across lifestyle to support your business opportunities, including in-store service and repair capabilities, we do not anticipate growth to exceed the 12% growth rate we had in 2021.

Given the strategic investments, we're making across lifestyle to support new business opportunities, including in store service and repair capabilities, we do not anticipate growth to exceed the 12% growth rate we had in 2021.

Speaker 3: and global automotive. We expect adjusted EBITDA to be stable in 2022, compared to 2021.

In global automotive, we expect adjusted EBITDA to be stable in 2022 compared to 2021.

As we overcome headwinds and investment income.

Speaker 1: as we overcome headwinds and investment income and the absence of $10 million of non-recurring gains, we recorded in the first half of 2021.

And the absence of $10 million of nonrecurring gains we recorded in the first half of 2021.

Moving to global housing.

Speaker 3: Then operating income was $80 million for the fourth quarter compared to $61 billion in the fourth quarter of 2020 driven by a lower report

Net operating income was $80 million for the fourth quarter compared to $61 million in the fourth quarter of 2020.

Driven by lower reportable catastrophes.

Speaker 3: excluding catastrophe losses, earnings decreased $7 million, mainly due to higher non-cat losses in our special PNC offering.

Excluding catastrophe losses earnings decreased $7 million, mainly due to higher non cat losses in our specialty P&C offerings.

Speaker 3: Non-cat losses included an $8.2 million increase, promulgated to reserve strengthening for runoff claims within our small commercial bloc.

non-GAAP losses included in an $8 $2 million increase primarily related to reserve strengthening for runoff claims within our small commercial book.

Speaker 3: As a reminder, this book stopped adding policies in 2019, but we continue to manage open claims.

As a reminder, this book stopped adding policies in 2019, but we continue to manage open claims.

Speaker 3: Absent this reserve increase earns relatively flat. As growth in under place was offset modestly by higher non-cat losses.

Absent. This reserve increase earnings were relatively flat as growth in lender placed was offset modestly by higher non cat losses.

We call certain factors in 2020, and the first quarter of 2021 temporarily depressed non cat loss levels, we do not consider those periods to be representative of historical and future trends.

Speaker 3: Recall, certain factors in 2020 and the first quarter of 2021, temporarily depressed non-Cat loss levels. We do not consider those periods to be representative of historical and future trends.

Speaker 3: Burning Scrooge and Lender Place Insurance was driven by the higher average insured value of enforced policies and claims processing efficiencies, which were partially offset by the impact of the continued foreclosure moratorium.

Earnings growth in lender placed insurance was driven by the higher average insured value of in force policies and claims processing efficiencies, which were partially offset by the impact of the continued foreclosure moratoriums.

Speaker 3: In January , we replaced our existing insurance coverage, representing two-thirds of our 2022 catastrophe insurance program placement.

In January we replaced our existing reinsurance coverage, representing two thirds of our 2022 catastrophe reinsurance program placement.

Speaker 3: We were able to continue placing reinsurance, covering multiple years to mitigate changes in the pricing of cap reinsurance in any one year.

We were able to continue placing reinsurance covering multiple years to mitigate changes in the pricing of cat reinsurance in any one year.

Speaker 3: and similar to prior years, the remainder of our reinsurance will be placed around mid-year. We will continue to evaluate the risks in rewards purchasing additional reinsurance, as well as alternatives that could more meaningfully reduce our risks.

And similar to prior years, the remainder of our reinsurance will be placed around mid year.

We will continue to evaluate the risks and rewards purchasing additional reinsurance as well as alternatives that could more meaningfully reduced our risk.

Speaker 3: In multi-family housing, underlying growth in our affinity and PNC channels was offset by increased expenses, primarily investments to further strengthen our customer experience, including our digital capabilities.

In multifamily housing underlying growth in our affinity and PMC channels was offset by increased expenses, primarily investments to further strengthen our customer experience, including our digital capabilities.

Speaker 1: Global housing revenue increased 2% year over year, made me from higher average insured values and premium rates and blender placed, and growth and multi-family housing. This was partially offset by lower specialty revenues from client run-off.

Global housing revenue increased 2% year over year, mainly from higher average insured values and premium rates in lender placed and growth in multifamily housing.

This was partially offset by lower specialty revenues from client runoff.

Speaker 1: For 2022, we expect global housing suggested EBITDA, excluding CAHPS, to grow by mid to high single digits compared to 2021. This is expected to be driven by-

For 2022, we expect global Housing's adjusted EBITDA, excluding cats to grow by mid to high single digits compared to 2021.

This is expected to be driven by three factors.

Speaker 1: First, growth and render placed insurance. From continued higher average insured values and gradually higher audio volumes, due to easing foreclosure more toms throughout the year.

First growth in lender placed insurance from continued higher average insured values and gradually higher our REO volumes due to easing foreclosure moratoriums throughout the year.

Speaker 1: Growth is expected to be partially offset by the impact of higher labor and material costs.

Growth is expected to be partially offset by the impact of higher labor and material costs.

Second expense savings initiatives, including our digital first efforts focused on automation will have a positive impact, albeit partially offset by continued investment initiatives, particularly in multifamily housing and third improved loss experienced in our specialty offerings related to small commercial.

Speaker 1: Second, expend savings initiatives, including our digital first efforts focused on automation will have a positive impact. I'll be partially offset by continuing investment initiatives, particularly in multi-family housing. And third, improved loss experience in our specialty offerings related to small commercial.

At corporate the net operating loss was $24 million, an improvement of $3 million compared to the fourth quarter of 2020.

Speaker 1: At corporate, the net offering loss was $24 million, and improvement of $3 million compared to the fourth quarter of 2020. This was mainly driven by higher investment income in the quarter from higher asset balances, including proceeds from the sale of global pre-need.

This was mainly driven by higher investment income in the quarter from higher asset balances, including proceeds from the sale of global Preneed.

For 2022, we expect the corporate adjusted EBITDA loss to approximate $105 million more in line with historical levels.

Speaker 1: For 2022, we expect the corporate adjusted EBITDA laws to approximate $105 million. More in line with historical levels.

Speaker 1: Turning the holding company liquidity, we ended the year with slightly over $1 billion. Primarily due to the proceeds from the sale of our pre-need business. In the fourth quarter, dividends from our operating segments totaled $176 million.

Turning to holding company liquidity.

We ended the year with slightly over $1 billion, primarily due to the proceeds from the sale of our preneed business and the fourth quarter dividends from our operating segments totaled $176 million.

Speaker 1: In addition to our quarterly corporate and interest expenses, we had outflows from three main items.

In addition to our quarterly corporate and interest expenses, we had outflows from three main items.

$290 million of share repurchases 30.

Speaker 1: $290 million of shared repurchases, $39 million in commons stock dividends, and $5 million related to insurance, ventures, investments.

<unk> $39 million in common stock dividends and $5 million related to Assurant ventures investments.

Speaker 1: For 2022, we expect our businesses to continue to generate strong cash flow and at a similar rate to prior years.

For 2022, we expect our businesses to continue to generate strong cash flow and at a similar rate to prior years.

Speaker 1: With the transitions adjusted EBITDA, we expect segment dividends to re-roughly three quarters of segment I've just did EBITDA, including catastrophes.

With their transition to adjusted EBITDA, We expect segment dividends to be roughly three quarters of segment adjusted EBITDA, including catastrophes. This.

Speaker 1: This translates to approximately 100% of segment net operating income.

This translates to approximately 100% of segment net operating income.

Speaker 1: As always, segment dividends are subject to the growth of the businesses, rating agency and regulatory capital requirements, and investment portfolio performance.

As always segment dividends are subject to the growth of the business is rating agency and regulatory capital requirements and investment portfolio performance.

Speaker 1: As Keith mentioned, we expect to provide additional color for 2022, including our outlook on a per share basis that aligns with adjusted EBITDA, along with further detail regarding our long-term view of financial metrics that support assurance strategic direction at investor day next month.

As Keith mentioned, we expect to provide additional color for 2022.

Including our outlook on a per share basis that aligns with adjusted EBITDA, along with further detail regarding our long term view of financial metrics that support assurance strategic direction at Investor Day next month.

Speaker 1: As a result of the expected level of shared repurchases, we wanted to note that we expected our growth on a per share basis will significantly exceed our adjusted ebit of growth.

As a result of the expected level of share repurchases. We wanted to note that we expect that our growth on a per share basis will significantly exceed our adjusted EBITDA growth.

In closing we are really excited to have met our objectives for 2021, despite the difficult operating conditions brought on by the pandemic and we're excited to be entering 2022 with the positive business momentum we highlighted today.

Speaker 1: In closing, we are really excited to have met our objectives for 2021, despite the difficult operating conditions brought on by the pandemic. And we're excited to be entering 2022 with the positive business momentum we've highlighted today. And with that, we're really excited to have met our objectives for 2021, despite the difficult operating conditions brought on by the pandemic.

And with that operator, please open the call for questions.

Speaker 4: The floor is now open for questions. At this time, if you have a question or comment, please press star one on your touchtone phone. If at any point your question is answered, you may remove yourself from the queue by pressing star one again.

The floor is now open for questions. At this time, if you have a question or comment. Please press star one on your Touchtone phone.

At any point. Your question is answered you may remove yourself from the queue by pressing star one again.

Speaker 4: We will do, again, we do ask that while you pose your question, that you pick up your handset and provide optimal sound quality. Thank you. Our first question comes from the line of Tommy McJoyne from KBW. Your line is open.

We will do again, we do ask that while you pose your question that you pick up your handset and provide optimal sound quality.

Thank you. Our first question comes from the line of Tommy <unk> joined from K B W. Your line is open.

Speaker 1: Say good morning guys, thanks for taking my question. So could you guys start off in this talk about some of the impacts of inflation on your device repair and upgrade business? I'm gonna say there's different factors with replacement parts and higher labor and wages. So it's a good kind of touch on how you're managing those risks.

Hey, good morning, guys. Thanks for taking my question. So could you guys start off and just talk about the impact of inflation on your device repair and upgrade business, obviously, there's different factors with replacement parts and higher labor and wages.

And how you're managing those risks.

Speaker 3: Sure, and good morning. Maybe I'll start talk a little bit about mobile and then Richard, you can talk more broadly about inflation overall. I'd say, you know, on the mobile business, it's had a relatively neutral impact on our financials. As we've talked about before, the business is largely reinsured and proper chaired with our clients. So you do see a little bit of impact on lost ratios when we're on risk, but it's been fairly immaterial as we look over the course of last many months.

Sure.

And good morning, maybe I'll start talk a little bit about mobile and then Richard you can talk more broadly about inflation overall I'd say.

The mobile business, it's had a relatively neutral impact on our financials.

We've talked about before the business is largely reinsured and profit share with our clients. So you do see a little bit of impact on loss ratios. When we're on risk, but it's been fairly immaterial as we look over the course of the last many months.

Speaker 3: I would also say, you know, from our perspective, we also think about delivering service to the end consumer and making sure we've got the right levels of inventory. So that's equally important to make sure we're delivering. And we've done a really good job stalking inventory, making sure we've got good lead time for parts delivery. From time to time, we see delays in terms of claim fulfillment. Sometimes that means a repair might take a little longer or we might have to replace a device versus doing a repair. But overall customer service has been excellent and the NPS scores in terms of what customers are telling us have been really, really strong. So that's more from the parts side. I'd say in the labor market.

I would also say from our perspective, we also think about delivering service to the end consumer and making sure. We've got the right levels of inventory. So that's equally important to make sure we are delivering and we've done a really good job stocking inventory, making sure. We've got good lead time for parts delivery from time to time, we do see delays in terms of claims.

Fulfillment, sometimes that means a repair might take a little longer or it might have to replace a device versus doing a repair, but overall customer service has been excellent and NPS scores in terms of what customers are telling us have been really really strong. So that's more from the parts side I'd say on the labor market.

Speaker 3: No doubt remains challenging and this is true across.

No doubt remains challenging and this is true across all of the businesses around the world I would say really proud of how the teams have navigated not just the labor market, but really the pandemic overall with work from home.

Speaker 3: all of the businesses around the world. I would say really proud of how the teams have navigated not just the labor market, but really the pandemic overall with work from home.

Speaker 3: you know I think because we kept health and safety at the front of everything that we did from a decision making perspective you know we built an incredible culture within the organization and I think we haven't seen a lot of you know the great resignation that you hear about every day we've done an incredible job kind of protecting our employee base and in fact we hired two thousand employees

I think because we kept health and safety at the front of everything that we did from a decision making perspective, we built an incredible.

Culture within the organization and I think we haven't seen a lot of the great resignation that you hear about every day, we've done an incredible job kind of protecting our employee base and in fact, we hired 2000 employees.

Speaker 3: to staff the 500 team mobile stores to do repairs and obviously including leadership positions did that extremely well in a very challenging market. So really proud of how we've navigated labor and I think one of our advantages is the talent that we have. But maybe Richard just a little bit more on macro inflation and as we think about the housing business as well. Sure sure

To staff, the 500 T mobile stores to do repairs, and obviously, including leadership positions did that extremely well in a very challenging market. So really proud of how we've navigated labor and I think one of our advantages is the talent that we have but maybe Richard just a little bit more on macro inflation as we think about the housing business as well.

Sure sure Thanks, Keith and good morning Tommy.

Speaker 1: Yeah, just in terms of the housing business overall, we have seen some increase in claim costs, and that's a little bit of a headwind.

Yes, just in terms of the housing business overall, we have seen some increase in claim costs and that's a little bit of a headwind, but on the other hand, we as we've talked about in our remarks, we have seen an increase in average insured value. So that's to a certain extent offset the pressure the pressure there I guess the other thing I'd.

Speaker 1: But on the other hand, as we talked about in our remarks, we have seen an increase in average and shared values. So, you know, that's to a certain extent offset, you know, the pressure, the pressure there. I guess the other thing I would say too.

I'd say too is while.

Speaker 1: you know, while, you know, short term we do feel some pressure from it. We have factored it into the comments we made today in terms of, you know, what we would consider to be the impact of inflation on our businesses in 2022. And you'll look that we, that we gave.

Short term, we do feel some pressure from it we have factored it into the comments we made today in terms of what we would consider to be the impact of inflation on our businesses in 2022 and the outlook that we that we gave and also a positive will be rising interest rates that will flow through to investment income.

Speaker 1: And also the positive will be rising interest rates that will flow through to investment income.

Speaker 1: So the higher rates will be helpful, both on a short and longer term, on the cash that we have in hand today, and also on new money coming in for premiums coming in as we invest it.

So the higher rates will be helpful. Both on the short and longer term.

On the cash that we have in hand today and also on new money coming in for premiums coming in as we invest it. So overall, we don't see a material impact.

Speaker 1: So overall, we don't see any careland impact in the short term or actually as we go further off.

In the short term are actually as we go further.

Thank you.

Thanks, I appreciate the feedback and then just switching gears a little bit.

Speaker 5: Thanks, appreciate the feedback. And then just switching gears a little bit to the outlook and into the guidance on EBITDA. So if I look over the past couple years, the EBITDA margin has kind of been in the 10 to 11% range. When you kind of think of long-term where EBITDA should go, do you think you should build in some margin expansion on EBITDA? Or do you think that 10 to 11% is kind of a good long-term rate?

Outlook until the guidance on EBITDA. So if I look over the past couple of years. The EBITDA margin, that's kind of in that 10% to 11% range. When you kind of think of long term, where EBITDA should go do you think you should build and some margin expansion on EBITDA or do you think that 10% to 11% as kind of a good long term rate.

Yes, I guess a couple of comments, we will be obviously coming out at Investor day on.

Speaker 3: Yeah, I guess a couple of comments. We will be obviously coming out at investor day on March 24th with a longer term outlook. So we'll be coming to the market with three year longer term financial projections. So that'll be a great time for us to lay out our vision for the future in certain.

On March 24th with a longer term outlook. So we will be coming to the market with three year longer term financial projections, so that'll be a great time for us.

Lay out our vision for the future and certainly if you look at our outlook for 'twenty two strong EBIT growth, we've signaled the 8% to 10% we saw 9%.

Speaker 3: If you look at our outlook for 22, strong, ebit of growth, we've signaled 8 to 10%, we saw 9%.

Speaker 3: in 2021. So continued strong momentum in terms of driving ebit of growth. And I would also say we're investing more as well organically to try and set up the future. And we'll talk a lot more about some of those investments and how we think about long-term growth trajectory emerging as we get back together in a few weeks.

In 2021, so continued strong momentum in terms of driving EBIT growth and I would also say we're investing.

More as well organically to try and set up the future and we'll talk a lot more about some of those investments and how we think about long term growth trajectory emerging as we get as we get back together in a few weeks.

Thank you and look forward to speaking.

Thank you.

Speaker 4: Your next question comes from a line of Michael Phillips from Morgan Stanley . Your line is open.

Your next question comes from the line of Michael Phillips from Morgan Stanley . Your line is open.

Speaker 6: Thanks, good morning. I'm actually, you just touched on it, but maybe a little bit deeper if you could keep on the guidance read, but I guess I was curious. And again, maybe nothing more than what you just said, but I'll say curious how much...

Thanks, Good morning, I'm actually you just touched on it but maybe a little bit deeper if you could keep on on the guidance for EBITDA I guess I was curious and again, maybe nothing more than what you just said, but I'll.

Okay.

Curious how much.

Speaker 6: I guess overall investment we should think about is being done this year, relative to say the amount that was done last year as we look at that 18% urban car motige has not been produced for the third time in the year 2013 and this is a

I guess overall investment we should think about as being done this year relative to say the amount that was done last year as we look at that 8% to 10% guide for EBITDA.

Speaker 3: Yeah, I would say we expect to make more investments overall across the company in 2022 than 2021. We obviously had some...

Yes, I would say, we expect to make more investments overall across the company in 2022 and 2021, we obviously had some material investments when you look at standing up savings repair with T mobile there.

Speaker 3: material investments when you look at standing up, saving a repair with T-Mobile. There was a significant lift to do that, obviously converting to sprint business. So there certainly were investments in 21. I would signal a little bit more investment to drive organic growth. And I would probably highlight a couple of areas. Certainly we're gonna continue to invest in service and repair capabilities, really building out the platform, the technology and the integration. We talked about investments in digital.

There was a significant lift to do that obviously converting the sprint business. So theres certainly were investments in 'twenty, one I would signal a little bit more investment to drive organic growth and I would probably highlight a couple of areas certainly we're going to continue to invest in service and repair capabilities really building out the platform the technology.

The integrations.

We talked about investments in digital first.

Speaker 3: in the prepared remarks. That's a really important priority for the organization. Obviously it drives efficiency longer term, but it radically improves the customer experience. That's a big priority. We've got several new client launches.

In the prepared remarks, that's a really important priority for the organization, obviously it drives efficiency longer term that radically improves the customer experience. So that's a big priority. We've got several new client launches that are planned that obviously take a significant amount of energy to get right and make sure we execute and deliver and then investment in longer term.

Speaker 3: that are planned that obviously take a significant amount of energy to get right and make sure we execute and deliver.

Speaker 3: and then investment in longer-term growth, new capabilities around the connected home.

Growth new capabilities around the connected home around innovation to drive new product bundles, new cross selling opportunities and I would say further scaling capability in Europe , and Japan, and so there's there's a lot of areas that we're trying to focus on there is a significant amount of long term growth potential across across all.

Speaker 3: around innovation to drive new product bundles and new cross-selling opportunities.

Speaker 3: And I would say further scaling capability in Europe and Japan. And so there's...

Speaker 3: There's a lot of areas that we're trying to focus on. There's a significant amount of long-term growth potential across all of our product lines. So I would say a pretty balanced...

Of our product lines, so I would say a pretty balanced.

Set of opportunities.

Speaker 6: Okay, thanks. That's all from here. We'll get a lot more details in a few weeks. You mentioned this in the opening comments as well. I would maybe a little bit more detail here. The expenses that you've incurred from the team over rollout that was kind of pushed into 4Q and some in Alan did this year. Is that going to be more of a 1Q issue or that continued at that same level if we get past 1Q of 2022?

Okay. Thanks, that's helpful. I'm sure we will get a lot more details in a few weeks.

And you mentioned in the opening comments as well.

Maybe a little bit more detail here.

The expenses that you've incurred from the T mobile rollout that was kind of pushed into <unk> and some are now under this year.

Is that going to be more of a <unk> issue or that continue at that same level as we get past Q of 2022.

Yes, I would say it will moderate from what we saw in the fourth quarter. We we did a great job that was a lot of work as you can imagine staffing up 500 stores over the course of.

Speaker 3: Yeah, I would say it'll moderate from what we saw in fourth quarter. We, you know, we did a great job. That was a lot of work, as you can imagine, staffing up 500 stores.

Speaker 3: over the course of, you know, really four or five months and then training onboarding all of our leadership, all of our technicians, just an incredible effort. I would first think I would say it underscores our ability to not only adapt to...

Really four or five months and then training on boarding all of our leadership all of our technicians.

Just an incredible effort I was the first thing I would say it underscores our ability to not only adapt to.

Speaker 3: Changing consumer preferences, but then drive significant focus on execution as a company.

Changing consumer preferences, but then drive significant focus on execution as a company and we did the same unit repair launch while we were migrating all of the sprint business and while we were staffing up to manage all of the sprint business as well separate from same unit repair. So a significant lift certainly in fourth quarter I would say it.

Speaker 3: And we did the same unit repair launch while we were migrating all of the sprint business and while we were staffing up to manage all of the sprint business as well, separate from same unit repair. So it's significant lift, certainly in fourth quarter. I would say it came in broadly in line with expectations in the quarter. And it will certainly moderate as we get into the in into 22 as we look to the first and second quarter. We'll certainly see more investment going forward and it will taper as we get through the rest of the year.

Came in broadly in line with expectations in the quarter and it will certainly moderate as we get into the.

And into 'twenty, two as we look to the first and second quarter will certainly see more investment going forward and it will taper as we get through the rest of the year.

Speaker 6: Okay, thanks Keith. One last one that had more higher level question. It's like good here. You continue to outpace the market and growth and run through policies and pretty significantly. Maybe you can talk about that and is that something that you think you can continue to do over the long term? It's pretty significant in your growth there versus the run through market and general. So, and you've done it for a couple of years for quite a while, but I guess we expect that to continue for the foreseeable future.

Okay. Thanks, Keith one last one more higher level question, if I could hear you continue to outpace the market and growth and renter policies.

Pretty significantly.

Maybe you can talk about that and is that something that you think you can continue to do over the long term, it's pretty significant growth there versus the route to market in general so when you've done it for the call.

For quite a while but I guess should we expect that to continue for.

The foreseeable future.

Speaker 3: Yeah, we've been really pleased with the performance this year, but as you say, over time, really good, strong, consistent growth.

Yes, I mean, we've been really pleased with the performance this year, but as you say over over time really good strong consistent growth.

Speaker 3: and also growing market share. If you look back over the years and we'll talk more about that, I'm sure it investors as well, but really strong overall share gains in the market. And we've seen a lot of good trends as well. The product is...

And also growing market share.

Look back over the years, and we will talk more about that I'm sure at Investor day, as well, but really strong.

Overall share gains in the market and we've seen a lot of good trends as well the product is there.

Speaker 3: The attachment rates and the products have got up over time. And that's certainly helping. We've grown our relationships with property management companies. And I certainly expect us to continue to drive policy growth and revenue growth going forward. That's another business that we're investing.

The attachment rates on the products have gone up over time, and that's certainly helping we've grown our relationships with property management companies and I certainly expect us to continue to drive policy growth and revenue growth going forward. That's another business that we're investing significantly in trying to evolve how we deliver services.

Speaker 3: significantly and try to evolve how we deliver services.

Speaker 3: thinking about investments in technology, investments in customer experience, digital integration with our partners, and then thinking about other services that we can add that are relevant for renters. So I'm really excited about that business long term and certainly expect momentum to continue as we move forward.

Thinking about investments in technology investments in customer experience digital integration with our partners and then thinking about other services that we can add.

That are relevant for renters. So.

Really excited about that business long term and certainly expect momentum to continue as we move forward.

Thanks, Steve I appreciate it.

Great. Thank you.

Your next question comes from the line of Tom Shimp from Piper Sandler Your line is open.

Speaker 4: Your next question comes from a line of Tom Schimp from Piper Sandler. Your line is open. A good morning.

Hi, good morning, congrats on the strong quarter.

Speaker 7: So very strong growth in global automotive in the past, you have spoken about increase in attachment rates from the high 30s to the high 40s, given the increase in prices and technology. Given that the chip shortage, there's been a number of reports of...

So.

Very strong growth in global automotive in the past you have spoken about the increase in attachment rates from the high Thirty's Forty's given the increase in prices in technology.

The chip shortage, there's been a number of reports of.

Speaker 7: Buyers paying over sticker for for new cars and you know we've got used car prices up as much as 40 percent So you know do you believe this is having an effect on attachment rates and You

Buyers paying over sticker for new cars.

Got used car prices up as much as 40%. So do you believe this is having an effect on attachment rates and maybe you could just give some general thoughts on whether the pie is getting bigger weather assurance is getting a bigger piece of the pie or both.

Yes, I think surety is definitely getting a bigger piece of the pie I.

Speaker 3: Yeah, I think Shira is definitely getting a bigger piece of the pie. I would say that attachment rates have probably drifted up.

I would say that attachment rates have probably drifted up more because of the mix of business that we've seen a shift between new and used and we tend to see slightly higher attach rates on used vehicles. So if you think historically, we've had a 50 50 mix roughly between new and used cars.

Speaker 3: more because of the mixed business. So we've seen a shift between new and used and we tend to see slightly higher attachments on used vehicles. So if you think historically we've had a 50, 50 mix roughly between new and used cars.

Speaker 3: Today it's probably 55 use, 45 new. So that would create a little bit higher overall blended attach rate. I wouldn't say that it's significantly changed otherwise. We've seen good, strong, consistent performance, and as always, it's a focus for our clients.

It's probably 55 use 45, new so that would create a little bit higher overall blended attach rate.

Didn't say that it's significantly changed otherwise we've seen good strong consistent performance and as always it's a focus for our clients.

Speaker 3: We've gained market share, no doubt, in the market that we've seen a lot of consolidation in the industry. We're partnered with a lot of large public, a lot of large dealer groups.

We've gained market share no doubt in the market, though we've seen a lot of consolidation in the industry. We're partnered with a lot of large publics a lot of large dealer groups and they are gaining share through acquisition I think we see more.

Speaker 3: and they're gaining shares through acquisition. I think we've seen more.

Speaker 3: You know, acquisitions in 2021 in terms of the big public.

Acquisitions in 2021 in terms of the Big Publics and then also.

Speaker 3: And then also our franchise dealers have been investing heavily in digital and also sourcing a lot more use car inventory directly from consumers. So a pretty significant improvement in terms of the performance of our client.

Our franchise dealers have been investing heavily in digital and also sourcing a lot more used car inventory directly from consumers. So a pretty significant improvement in terms of the performance of our clients and then I'd say, we've also won new clients as well in the market and it's a very fragmented market today. So there is still a.

Speaker 3: And then I'd say we've also won new clients as well in the market and it's a very fragmented market today. So there's still a lot of opportunity for for share gain over time.

A lot of opportunity for share gain over time.

Okay, great maybe moving to mobile.

Speaker 7: Okay, great. Maybe moving to mobile, you know, it's been a lot of moving pieces in 5G, you know, after what seemed like a delayed rollout, you know, there's an uptick in 5G promotions and an activity around that potential catalyst.

A lot of moving pieces in <unk>.

After what seemed like a delayed delayed rollout.

As an uptick in promotions and connectivity around that potential catalysts.

Speaker 7: But then we recently had the delay in 5G implementation due to the FAA. So maybe you could frame for us how to think about the potential benefit from 5G, whether it's total cover mobile device count or trading volumes. How should we think about the cadence of the benefit to 22 earnings in the years that follow?

But then we recently had the delay <unk> implementation due to the FAA. So maybe you could frame for us how to think about the potential benefit from <unk> whether it's.

Total covered.

Cover mobile device count or trading volumes, how should we think about the cadence of the benefit to 'twenty two earnings.

The years that follow.

Speaker 3: Yeah, we had a significant success in 21, certainly with trading volumes at all time highs. And that's partly...

Yes, we had a significant.

Success in 21, certainly with trading volumes at all time highs and that's partly due to the acquisition of Hyatt and then due to a number of other factors you pointed out the promotional activity from clients. Obviously, the migration of <unk>, we've seen clients put more focus and energy.

Speaker 3: due to the acquisition of HILA, and then due to a number of other factors, you know, you point out the promotional activity from clients, obviously the migration of 5G, we've seen clients put more focus and energy on trade-in. Obviously it's got sustainability benefits, which is really important. It also, you know,

On trade in obviously, it's got sustainability benefits, which is really important it also.

Speaker 3: provides digital access to consumers at more affordable rates. So there's a lot of reasons why I would say trade-in is generally growing as a category. We're seeing a lot more interest around the world with different partners. So from that perspective, I feel really good about that trend continuing. And then in terms of 5G specifically, I'd say we're still fairly early in the cycle. You've got maybe 20 to 30% of postpaid customers.

Provide digital access to consumers at more affordable rates. So there is a lot of reasons why I would say trade in is generally growing as a category, we're seeing a lot more interest.

Around the world with different partners so.

From that perspective, I feel really good about that trend continuing and then in terms of <unk>, specifically I would say, we're still fairly early in the cycle, you've got maybe 20% to 30% of postpaid customers in the key markets that we operate that have that have migrated to <unk> networks. So theres still a lot more.

Speaker 3: in the key markets that we operate that have migrated to 5G networks. So there's still a lot more opportunity as consumers continue to upgrade devices and adopt 5G. So we'll see continued promotional activity and we'll see a lot of trade in volume as we move through 2022 that certainly underpins.

<unk> as consumers continue to upgrade devices and adopt <unk>. So we will see continued promotional activity and we will see a lot of trading volume as we move through 2022 that certainly underpins some of our thinking with our connected living growth and then I think we will see more globally. As this continues to get focus.

Speaker 3: Some of our thinking with our connected living growth and then I think we'll see more globally as this continues to get focused. Okay.

Okay, great. Thank you for your answers.

Thank you.

Speaker 4: Your next question comes from the line of Mark Hughes from Truist Securities. Your line is open. Morning, Mark.

Your next question comes from the line of Mark Hughes from <unk> Securities. Your line is open.

Good morning, Mark Yes. Thank you good morning.

Speaker 8: You mentioned that you're looking to evaluate perhaps alternative risk strategies and global housing, maybe a layoff of...

You had mentioned.

You're looking to evaluate perhaps alternative risk strategies in global housing maybe.

Layoff.

Speaker 8: material portion of your catastrophe, exposure. As I understood you to say, I thought that had kind of been put to bed, but sounds like you're still working on it, still evaluating it. Could you talk about what you're thinking is there, how serious that initiative might be?

A material portion of your catastrophe exposure.

If I understood you to say.

I thought that had kind of been put to bed, but it sounds like you are.

We're still working on it still evaluating and could you talk about what your thinking is there.

Period that initiative might be.

Speaker 3: Sure, and maybe I'll start just, you know, reinforce a little bit about the business and then I'll address your question. I mean, I would just highlight.

Sure and maybe I'll start.

Our reinforced a little bit about the business and then I'll address your question I mean, I would just highlight.

Speaker 3: You know, it's a really unique, high-performing business. You know, if you think about the cash flows that generate out of our housing business and the important role that we play in the mortgage value chain, so we're really proud of the business and the results it's delivered. And I would say if you look at housing overall.

It's a really unique high performing business.

If you think about the cash flows that generate out of our housing business and the important role that we play in the mortgage value chain. So we're really proud of the business and the result is delivered and I would say if you look at housing overall, we talked about targeting a 17% to 20% Roe.

Speaker 3: And we talk about targeting a 17 to 20% ROE.

Speaker 3: after a normal cat load if you look at 2021 we actually had a hundred and fourteen million dollars of cat losses so more than what we would consider a normal cat

After a normal cat load. If you look at 2021, we actually had $114 million of cat losses.

More than what we would consider a normal cat load and still delivered a 16, 5% ROE so broadly really strong business, great ROE and generates a ton of cash flow. So we really like the business. It's for a lot of different reasons in terms of the comments around the cat exposure I would say, we're always looking for ways.

Speaker 3: and still delivered a 16.5% ROE. So broadly, really strong business.

Speaker 3: great R O E's and generates a ton of cash flow. So we really like the business. It's for a lot of different reasons.

Speaker 3: In terms of the comments around the cat exposure, I would say we're always looking for ways to optimize the cat.

To optimize the cat exposure.

Speaker 3: You've seen a pretty strong track record of reducing risk over the years and that's not just as we've grown other parts of the company. We've significantly grown.

<unk> seen a pretty strong track record of reducing risk over the years and thats not just as we've grown other parts of the company we've significantly grown.

Speaker 3: parts of housing and then obviously lifestyle which don't have much of any cat exposure at all. We've also dramatically reduced.

Parts of housing and then obviously lifestyle, which don't have much.

Of any cat exposure at all we've also dramatically reduced our per event exposure from $2 $40 million to $80 million over the years.

Speaker 3: our per event exposure from 240 to 80 million over the years.

Speaker 3: And then a lot of other decisions around multi-year coverage, exiting certain non-strategic

And then a lot of other decisions around multi year coverage exiting certain non strategic cat prone markets et cetera. So you've seen a lot of discipline that will no doubt continue as we move forward, but we are always looking to see if there are further ways to optimize is there a risk reward trade off that we can work with reinsurance partners.

Speaker 3: cat-prone markets, et cetera. So you've seen a lot of discipline. That will no doubt continue as we move forward, but we are always looking to see if there are further ways to optimize.

Speaker 3: Is there a risk reward tradeoff that we can work with reinsurance partners in a different way to further mitigate the risk, further mitigate the volatility and try to drive the right most efficient optimal outcome. And we're going to continue to look at that. I wouldn't say there's anything imminent that we're doing other than this is normal course for us. And it's very important for us to be thinking about our reinsurance and our cat risk all the time.

In a different way to further mitigate the risk further mitigate the volatility and try to drive the right most efficient optimal outcome and we're going to continue to look at that I wouldn't say, there's anything imminent that we're doing other than this is normal course for us.

And it's very important for us to be thinking about or.

Our reinsurance and our cat risk all the time.

Speaker 8: And then you had made a, I think, a point of saying that you were looking for a balanced mix of investments and share buyback.

And then you had made a I think a.

A point of saying that you were looking for a balanced mix of investments and share buyback.

Speaker 8: If I did the simple person and said that if you look at pre-cash flow for 2022 is that half share buybacks half retain for investments or M&A

If I did the simple person and said if you look at free cash flow for 2022.

Share buyback half retained for investments or M&A.

Yes.

Speaker 3: Yeah, and we'll spend more time on capital management, certainly at investor day. I would say a couple of things. We're not trying to signal a dramatic shift in our philosophy. That's point number one. We continue to be extremely disciplined as we think about capital management. So that's not gonna change. And ultimately, we're trying to maximize returns. I think what we're more trying to signal is

Spend more time on capital management, certainly at Investor Day, I would I would say a couple of things we're not trying to signal a dramatic shift in our philosophy. That's point number one we continue to be extremely disciplined as we think about capital management. So that's not going to change and ultimately we're trying to maximize.

Returns.

I think what were more trying to signal is.

Speaker 3: an interest in maintaining greater flexibility. There's lots of attractive opportunities in the market to drive growth, and we want to have a little more flexibility to try and evaluate the best alternatives, but obviously being extremely disciplined with how we think about long-term value creation. So we'll talk a little bit more about our expectations for capital deployment in a few weeks, but that would probably be the bigger takeaway for me.

And interest and maintaining greater flexibility, there's lots of attractive opportunities in the market to drive growth and we want to have a little more flexibility to try and evaluate the best alternatives, but obviously being extremely disciplined with how we think about long term value creation. So we'll talk a little bit more about.

Our expectations for capital deployment in a few weeks, but that would probably be the bigger takeaway for me.

Yeah, and then just one.

Speaker 8: Yeah, and then this one by my, you talked about expanding the connected home, does that suggest an appetite or maybe a broader home warranty exposure?

If I might.

You talked about expanding in the connected home.

Does that.

Suggest an appetite or maybe a broader home warranty exposure.

Speaker 3: yeah i think we're you know where we play today around the connected home is more around the connected technology uh... the appliances the electronics

Yes, I think we're where we play today around the connected home is more around the connected technology the appliances the electronics.

Speaker 3: That side of the business we don't really have home warranty with our portfolio today.

That side of the business, we don't really have home warranty within our portfolio today.

Speaker 3: And that's a big competitive market. There are many strong players in that space. So I think there's an opportunity more uniquely for us as we think about built

That's a big competitive market. There are many strong players in that space. So I think theres an opportunity more uniquely for us as we think about building bundled subscription services to protect more broadly consumers.

Speaker 3: bundled subscription services to protect more broadly consumers, connected technology, and other products that they have in their homes. So that's more of the angle that we think is appropriate for a sure. And we'll talk more about that at an investor day, but we definitely see interesting trends, a lot of appetite from consumers.

Connected technology and other products that they have in their homes. So that's more of the angle that we think is appropriate for assurant and we'll talk more about that at Investor day, but we definitely see interesting trends a lot of appetite from consumers.

Speaker 3: We operate with a broad range of distribution partners.

We operate with a broad range of distribution partners.

Speaker 3: So there's a lot of interesting bundled services that we think we can bring to bear for sort of a connected consumer of the future.

So theres a lot of interesting.

Bundled services that we think we can bring to bear for sort of the connected consumer of the future.

Great. Thank you.

Thank you.

Speaker 4: Again, if you would like to ask a question, press star then the number one on your touch tone phone.

Again, if you would like to ask a question Press Star then the number one on your Touchtone phone.

Speaker 4: Your next question comes from a line of Brian Meredith from UBS Financial. Your line is open.

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

Speaker 6: morning right good morning um... a couple questions here personally come to curious on the uh... repair centers in team mobile stores is that an exclusive deal or could you roll that out to other customers and what is the in the inquiries you perceive on doing it i think that a lot of the other customers would be really interested in that that type of a program

Morning, Brian .

Morning.

A couple of questions here first of all I'm, just curious on the repair centers and T. Mobile stores is that an exclusive deal or could you roll that out to other customers and what is kind of been the inquiries you perceived on doing that I would think that a lot of the other customers would be really interested in that type of a program.

Speaker 3: Yeah, I think you're right. And we've certainly, you know, and you've seen it with our investments dating back a few years, right? We invested in and bought a company called CPR. We also bought FICS, so we have lock and repair facilities.

Yes, I think I think youre right and we've certainly <unk> seeded with our investments dating back a few years right. We invested in and bought a company called CPR.

<unk> fixed so we have Lockheed repair facilities operated by Assurant, We've got come to you repair technicians as well and now for T mobile operating within their store definitely think we will see more and more interest from clients around the world as they think about the appropriate repair strategy and claims fulfillment.

Speaker 3: operated by a churn we've got come to you repair technicians as well and now for key mobile operating within their store Definitely think we'll see more and more interest from clients around the world as they think about the appropriate repair strategy and claims fulfillment strategy for each brand so Definitely it's client by client in terms of what's most appropriate and what vision do they want to Create for servicing consumers, but I definitely expect to see more appetite over time

<unk> for each brand so definitely it's client by client in terms of whats most appropriate and what vision do they want to create for servicing consumers, but I definitely expect to see more appetite over time.

Great and then I'm just curious one quick one on the catastrophe reinsurance program renewal it sounds like fairly similar structure to the program.

Speaker 6: great and then I'm just curious one quick one on the catastrophe re-insurance program renewal. It sounds like fairly similar structure to the program. What about the cost of it? What was the additional cost associated with it?

What about the cost of it what was the additional cost associated with it.

Speaker 3: Yeah, and I would say we're really pleased with the renewal that we got and Richard, I know works closely on it, maybe share a couple thoughts, Richard.

Yes, and I would say, we're really pleased with the renewal that we got and Richard I know works closely on it maybe share a couple of thoughts Richard.

Speaker 1: Yeah, I think, you know, as we've said before on renewals, in the beginning, we have to invest. And then as we go along, we make profits over time. And it's gone really well, so to date. I mean, to date, our partners can deliver better solutions for our customers with what we're doing. So it's not just in service repair. I would say today, we've covered most of it through the end of the year. We're probably about two thirds of the coverage being placed.

Yes, I think as we've said before on.

On renewals in the beginning we have to invest and then as we go along.

We make profits over time.

And it's gone really well so to date I mean to date, our partners can deliver better solutions for our customers with with what we're doing so it's not just in service repair I would say today, we've covered most of it through the end of the year, we're probably about two thirds of that coverage being placed.

Speaker 1: and we'll place the rest of it in mid-year as you know. And we've had success in the pricing of it.

And.

We will face the rest of it.

At mid year, as you know and we've had success in the pricing of it.

Speaker 1: We have a good stable re-insurance. And if we look out in the market, we've had some re-insurance that, you know, some insurance have had trouble placing. We placed 100% and we placed it at the low end of the market as well. If there are ranges from anywhere from five to 30% on re-insurance. So we've done a really good job.

We have a good stable reinsurers and if we look out in the market we've had some reinsurers that.

Insurers have had trouble, placing we placed 100% we placed it at the low end of the market as well.

Ranges from anywhere from 5% to 30% on reinsurance.

So we've done we've done a really good job.

Speaker 1: gotcha gotcha towards the low end of the market great yeah that yeah single single single I've got put in the kind of mid mid die single digits overall so and in a really good place

Got you got you so towards the low end of the market great. Yes, yes single single lightweight and that kind of a mid to high single digits overall so.

In a really good place.

Speaker 9: And then I guess just my last time maybe you'll be touching this investor day when I think about your 8 to 10% EBITDA ex-CAT guidance for 2022. Should I think about that is more margin driven or revenue driven?

Terrific good outcome.

Then I guess just my last one maybe it will be touching this investor day, when I think about your 8% to 10%.

EBITDA ex cat guidance.

For 2022 should I think about that is more margin driven or revenue driven.

Speaker 3: I mean, we're, you know, certainly both. I mean, we're going to grow revenues as a company, but we're also expanding margins. If you think about the makeup of our business, we typically have grown profitability at a quicker pace than we've grown revenue just based on some of the ways.

I mean.

Certainly both I mean, we're going to grow revenues as a company.

But we're also expanding margins. If you think about the makeup of our of our business. We typically have grown profitability at a quicker pace than we've grown revenue just based on some some of the ways.

Speaker 3: that revenue flows through the P&L. So I do expect to see margin expansion in terms of the breadth of services that we deliver to clients over time. So definitely growing revenue, but growing margins quicker than revenues, which has typically been the case. Great.

That revenue flows through the P&L.

So I do expect to see margin expansion in terms of the breadth of services that we deliver to clients over time, so definitely growing revenue, but growing margins quicker than revenues, which is typically been the case.

Great. Thank you.

Thank you.

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

Speaker 4: And your final question comes from a line of Grace Carter from Bank of America. Your line is open. Morning, Grace.

Morning, guys.

Speaker 10: Hi, good morning. I'm looking at the guidance for amortization of intangibles next year. I was wondering if we could clarify any assumptions regarding bull time M&A that are included in that estimate. And just given recent market volatility, if we could talk about just the outlook for bull time M&A opportunities in the lifestyle business and if valuations are any more attractive now than they were a few months ago.

Hi, good morning.

King.

Guidance for amortization of intangibles next year I was wondering if we could clarify any assumptions regarding bolt on M&A that are included in that estimate.

And just given the recent market volatility if we could talk about just the outlook for bolt on M&A opportunities in the lifestyle business.

Valuations are any more attractive now than they were a few months ago.

Speaker 1: It may keep going to the first part until the next year. Perfect.

Keith Let me take the first part and Kevin next year perfect.

Speaker 1: Yeah, just to start with the numbers, I mean, it doesn't, the numbers that we've given in the earnings outlook really doesn't include any future acquisitions we buy. It's really the current acquisitions where we've done and how it kind of rolls forward. So, you know, I would just say, remember we've done, you know, deals at the end of last year where we have high law and AFAS and that's gonna be running through.

Yes, just to start with the numbers I mean, it doesn't the numbers that we've given in the earnings outlook really doesn't include any future acquisitions. We buy it is truly the current acquisitions, where we've done and how it kind of rolls forward.

So.

I would just say remember we've done deals at the end of last year, where we have high law.

And thats going to be running through.

Yeah and in terms of of M&A, obviously, we're always looking in the market for attractive opportunities and valuations certainly move around and we've seen really high expectations at times and more tempered at others, but.

Speaker 3: Yeah, and in terms of M&A, obviously we're always looking in the market for attractive opportunities and valuations certainly move around. We've seen really high expectations at times and more tempered at others, but I would say we're definitely interested in acquiring strategic capabilities. You've seen us do, I think, some really good.

I would say where we are.

Definitely interested in acquiring strategic capabilities, you've seen us do I think some really good.

Speaker 3: strong foundational acquisitions if i think back to the warranty group which was a big scale play gave us you know a great overlap with our current geographies and and really a global leading position around auto

Strong foundational acquisitions, if I think back to the warranty group, which was a big scale play gave us a great overlap with our current geographies and really a global leading position around auto.

Speaker 3: The acquisition of HILA that really scaled us as the global leader in trade-in right on the front edge of the 5G Supercycle

The acquisition of <unk> that really scaled us as the global leader in trade in right on the front edge of the <unk> Super cycle.

Speaker 3: You saw the acquisition of AFAS which gave us real strength in

The acquisition of <unk>, which gave us real strength.

Speaker 3: in the US auto market to complement the acquisition of the warranty group and then some of the mobile acquisitions I talked about, CPR and fixed, really just important capabilities and set the foundation for what we're doing today with T-Mobile. So I think we're going to continue to look for those types of acquisitions and we always try to find multiple ways

In the U S auto market to complement the acquisition of the warranty group and then some of the mobile acquisitions I talked about CPR in fixed really important capabilities and set the foundation for what we're doing today with T. Mobile. So I think we're going to continue to look for those types of acquisitions and we always try to find multiple ways to.

When how.

Speaker 3: How do we get access to new clients or new distribution channels, new capabilities that can wrap around the services that we are already provide? And then clearly looking for low risk in terms of integration, execution, and financial performance. So we're always looking for those types of deals. That's why we want to maintain flexibility. But as you've seen, we will continue to be disciplined and we will try to find really strategic opportunities to drive that growth.

How do we get access to new clients or new distribution channels, new capabilities that can wrap around the services that we already provide and then clearly looking for.

Low risk in terms of integration execution and financial performance. So we're always looking for those types of deals. That's why we want to maintain flexibility, but as <unk> seen we will continue to be disciplined and we will try to find really strategic opportunities to drive that growth.

Speaker 10: Thank you. And just another one, looking at the housing adjusted EBITDA guidance for next year. It sounds like the combined ratio might drift a little below that historical guidance of 86 to 90%.

Thank you and just another one looking at housing our adjusted EBITDA guidance for next year.

It sounds like the combined ratio might drift, a little below that historical guidance of 86% to 90%.

Speaker 10: I was just wondering how sustainable, maybe a combined ratio below that could be and just how we should think about that going forward, just giving ongoing changes in the mix of business with multi-family housing kind of outgrowing, winter placed.

I was just wondering how sustainable.

Maybe a combined ratio below that could be and just how we should think about that going forward, just giving ongoing changes in the mix of business with them.

<unk> family housing kind of outgrowing lender placed.

And Richard do you want to talk a minute on that.

Speaker 1: Yeah, I think the historical guidance that we give 86 to 90 is a long-term measure. And I would kind of base things on that. Obviously, it depends on the mix we have within the business. And I think you're exactly right, as multi-family grows, that kind of comes into the waiting on it.

Yes, I think I think be the.

Historical guidance that we gave 86 to 90.

Is a long term measure and I would I would kind of base things on that obviously it depends on the mix we have within within the business and I think youre exactly right is as multifamily grows that kind of.

It comes into the waiting on it.

Speaker 1: But I think what's more important too is there's the one part which is the combined operating ratio, the 86 to 90. There's a second part which is the premium.

But I think what's more important to us.

One part, which is the combined operating ratio of 86% to 90, there was a second part which is the premiums.

Speaker 1: And as we see markets changing over time, as we see the four-barrens, the mortgdaume's running off, and we see the inflation, average-insured values and whatever, I think we're gonna see premiums move up as well.

And as we see markets.

Changing over time as we see.

The forbearance moratoriums running off.

Alright, and we see the inflation average insured values and whatever I think we're going to see premiums move up as well.

Speaker 1: So in terms of profitability when we're talking about Lenderplace, for example, we are talking about, you know, looking at higher, higher, better performance in next year. And that is going to be driven by higher average and short values, the non-Cat loss ratio staying at about current levels.

So in terms of profitability when we're talking about lender placed for example, we are talking about looking at higher higher better performance in next year and that is going to be driven by higher average insured values. The non cat loss ratio staying at.

Our current levels and that will help profitability overall and in addition to that obviously, we're working our expenses as we go along and and the operational efficiencies that we cited are helping the bottom line as well.

Speaker 1: and that will help profitability overall. And in addition to that, obviously, we're working on our expenses as we go along and the operation of efficiencies that we cited are helping the bottom line as well.

Thank you.

Great. Thanks, Chris.

Speaker 3: And thank you everyone for participating in today's call. We're very pleased with our performance in 2021 and excited for another year of proper old growth in 2022.

And thank you everyone for participating in today's call. We're very pleased with our performance in 2021 and excited for another year of profitable growth. In 2022. We're also looking forward to our upcoming virtual Investor day on March 24th where we will have the opportunity to share the assurant vision, our strategy and multi year financial objectives.

Speaker 3: We're also looking forward to our upcoming virtual investor day on March 24th, where we'll have the opportunity to share the Assurance Vision, our strategy, and multi-year financial objectives. So stay tuned for registration details coming out soon. And in the meantime, please reach out to Suzanne Sheppard and Sean Mosier with any follow-up questions. And thank you very much. Have a great day. Thank you. This does-

So stay tuned for registration details coming out soon and in the meantime, please reach out to Suzanne Shepherd and Sean Moshier with any follow up questions and thank you very much have a great day.

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

Speaker 4: Please disconnect your lines at this time and have a wonderful day.

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Okay.

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Yes.