Q1 2026 Assurant Inc Earnings Call

May 6, 2026

Speaker #1: Welcome to ASSURANT's first quarter 2026 conference call and webcast. At this time, all participants have been placed in a listen-only mode, and the floor will be open for questions following management's prepared remarks.

Operator: Welcome to Assurant First Quarter twenty twenty-six conference call and webcast. At this time, all participants have been placed in a listen-only mode, and the floor will be open for questions following management's prepared remarks. We ask that you please hold all questions until the completion of the formal remarks, at which time you'll be given instructions for a question-and-answer session. It is now my pleasure to turn the floor over to Sean Moshier, Vice President of Investor Relations. You may begin.

Operator: Welcome to Assurant First Quarter 2026 Conference Call and Webcast. At this time, all participants have been placed in a listen-only mode, and the floor will be open for questions following management's prepared remarks. We ask that you please hold all questions until the completion of the formal remarks, at which time you'll be given instructions for a question-and-answer session. It is now my pleasure to turn the floor over to Sean Moshier, Vice President of Investor Relations. You may begin.

Speaker #1: We ask that you please hold all questions until the completion of the formal remarks at which time you'll be given instructions for a question and answer session.

Speaker #1: It is now my pleasure to turn the floor over to Sean Moshier, Vice President of Investor Relations. You may begin.

Speaker #2: Thank you, Operator, and good morning, everyone. We look forward to discussing our first quarter results with you today. Joining me for ASSURANT's conference call are Keith Demmings, our President and Chief Executive Officer, and Keith Meier, our Chief Financial Officer.

Sean Moshier: Thank you, operator. Good morning, everyone. We look forward to discussing our Q1 results with you today. Joining me for Assurant conference call are Keith Demmings, our President and Chief Executive Officer, and Keith Meier, our Chief Financial Officer. Yesterday, after the market closed, we issued an earnings release announcing our results for Q1 2026. The release and corresponding financial supplement are available on assurant.com. Also on our website is a slide presentation for our webcast participants. Some of the statements made today are forward-looking. Forward-looking statements are based upon our historical and current expectations and subject to risks, uncertainties, and other factors that may cause actual results to differ materially from those contemplated by these statements. Additional information regarding these factors can be found in the earnings release, presentation, and financial supplement on our website, as well as in our SEC reports.

Sean Moshier: Thank you, Operator. Good morning, everyone. We look forward to discussing our Q1 results with you today. Joining me for Assurant conference call are Keith Demmings, our President and Chief Executive Officer, and Keith Meier, our Chief Financial Officer. Yesterday, after the market closed, we issued an earnings release announcing our results for Q1 2026. The release and corresponding financial supplement are available on assurant.com. Also on our website is a slide presentation for our webcast participants. Some of the statements made today are forward-looking. Forward-looking statements are based upon our historical and current expectations and subject to risks, uncertainties, and other factors that may cause actual results to differ materially from those contemplated by these statements. Additional information regarding these factors can be found in the earnings release, presentation, and financial supplement on our website, as well as in our SEC reports.

Speaker #2: Yesterday, after the market closed, we issued an earnings release announcing our results for the first quarter 2026. The release and corresponding financial supplement are available on ASSURANT.com.

Speaker #2: Also on our website is a slide presentation for our webcast participants. Some of the statements made today are forward-looking. Forward-looking statements are based upon our historical and current expectations and 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 the earnings release, presentation, and financial supplement on our website, as well as in our SEC reports.

Speaker #2: During today's call, we will refer to non-GAAP financial measures. Which we believe are important in analyzing the company's performance. For more details on these measures, the most comparable GAAP measures, and a reconciliation of the two, please refer to the earnings release, presentation, and financial supplement on our website.

Sean Moshier: During today's call, we will refer to non-GAAP financial measures, which we believe are important in analyzing the company's performance. For more details on these measures, the most comparable GAAP measures, and a reconciliation of the two, please refer to the earnings release, presentation, and financial supplement on our website. We will start today's call with remarks before moving into Q&A. I will now turn the call over to Keith Demmings.

Speaker #2: We'll start today's call with remarks before moving into Q&A. I will now turn the call over to Keith Demmings.

Speaker #3: Good morning, and thank you for joining us. Following a remarkable 2025 where we delivered our third consecutive year of double-digit earnings and EPS growth, we're pleased to share that 2026 is off to a strong start.

Keith Demmings: Good morning, and thank you for joining us. Following a remarkable 2025, where we delivered our third consecutive year of double-digit earnings and EPS growth, we're pleased to share that 2026 is off to a strong start. The Q1 represents the strongest performance in Assurant history, driven by record earnings in Global Lifestyle. We delivered 6% growth in adjusted EBITDA and 9% growth in adjusted EPS, both excluding reportable catastrophes. When excluding impacts from Global Housing's prior year reserve development, these metrics grew 8% and 12% respectively. Once again, our diversified portfolio and disciplined execution supported strong performance in a dynamic operating environment. Our results this quarter reflect the momentum we've built across the enterprise, supported by the durability of our earnings. We leveraged the strength and flexibility of our capital position to accelerate share repurchases during the quarter, given our compelling valuation.

Speaker #3: The first quarter represents the strongest performance in ASSURANT's history. Driven by record earnings and global lifestyle, we delivered 6% growth in adjusted EBITDA and 9% growth in adjusted EPS, both excluding reportable catastrophes.

Speaker #3: When excluding impacts from global housing's prior-year reserve development, these metrics grew 8% and 12% respectively. Once again, our diversified portfolio and disciplined execution supported strong performance in a dynamic operating environment.

Speaker #3: Our results this quarter reflect the momentum we've built across the enterprise. Supported by the durability of our earnings, we leveraged the strength and flexibility of our capital position to accelerate share repurchases during the quarter given our compelling valuation.

Speaker #3: At the center of our performance is our talented workforce. Leading with insight, challenging convention, and delivering with discipline, their commitment continues to help us and our clients win together.

Keith Demmings: At the center of our performance is our talented workforce, leading with insight, challenging convention, and delivering with discipline. Their commitment continues to help us and our clients win together as we redefine protection and related services and create value across the markets we serve. Q1 represents an exceptional start to the year, reinforcing our path to achieving our 10th consecutive year of profitable growth. Turning to Global Lifestyle, we delivered an exceptional Q1 with double-digit earnings growth in both Connected Living and Global Automotive. In Connected Living, earnings increased 18%, driven by expansion with existing clients and continued optimization of recently added programs. As our earnings benefit from the momentum we've built, we continue to execute on our compelling pipeline of new opportunities with 4 new mobile announcements this quarter. First, our long-term agreement with T-Mobile supports our leadership and innovation in this space.

Speaker #3: As we redefine protection and related services and create value across the markets we serve, the first quarter represents an exceptional start to the year reinforcing our path to achieving our 10th consecutive year of profitable growth.

Speaker #3: Turning to global lifestyle, we delivered an exceptional first quarter with double-digit earnings growth in both connected living and global automotive. In connected living, earnings increased 18%, driven by expansion with existing clients and continued optimization of recently added programs.

Speaker #3: As our earnings benefit from the momentum we've built, we continue to execute on our compelling pipeline of new opportunities, with four new mobile announcements this quarter.

Speaker #3: First, our long-term agreement with T-Mobile supports our leadership and innovation in this space. Following the success of our reverse logistics partnership, we deepened our relationship following T-Mobile's acquisition of US Cellular.

Keith Demmings: Following the success of our reverse logistics partnership, we deepened our relationship following T-Mobile's acquisition of UScellular, successfully migrating another large in-force mobile subscriber base and contributing to an increase in our total devices protected that now stands at nearly 69 million devices globally. Like our prior device protection migration with Sprint, this reflects our proven ability to quickly transition large, complex device protection portfolios with minimal disruption and low subscriber churn, a critical proof point for potential new clients. Taken together, these milestones reinforce the strength of our relationship with a leading US carrier and highlight the strategic value of our integrated mobile protection, repair, and logistics platform. Second, we're extending our leadership in reverse logistics through a new opportunity with another large US carrier. This engagement expands our existing services to support all device return and disposition channels.

Speaker #3: Successfully migrating another large in-force mobile subscriber base and contributing to an increase in our total devices protected that now stands at nearly 69 million devices globally.

Speaker #3: Like our prior device protection migration with SPRINT, this reflects our proven ability to quickly transition large, complex device protection portfolios with minimal disruption and low subscriber churn, a critical proof point for potential new clients.

Speaker #3: Taken together, these milestones reinforce the strength of our relationship with a leading U.S. carrier and highlight the strategic value of our integrated mobile protection, repair, and logistics platform.

Speaker #3: Second, we're extending our leadership in reverse logistics through a new opportunity with another large US carrier. This engagement expands our existing services to support all device return and disposition channels.

Speaker #3: Return devices will be repaired for circular usage, creating incremental value across their network. Devices will be processed through our highly automated Nashville device care center, demonstrating how our investments in scaled infrastructure and operational excellence are enabling us to deepen relationships with key mobile partners and unlock new growth opportunities.

Keith Demmings: Return devices will be repaired for circular usage, creating incremental value across their network. Devices will be processed through our highly automated Nashville Device Care Center, demonstrating how our investments in scaled infrastructure and operational excellence are enabling us to deepen relationships with key mobile partners and unlock new growth opportunities. Third, we recently expanded our partnership with Xfinity Mobile through a new rate plan that includes lifetime device protection for phones, tablets, and watches, and includes a benefit that allows customers to receive a phone upgrade anytime. These benefits are embedded in Xfinity's Mobile Plus plan at a single bundled cost to customers. This milestone builds on our 10-year partnership with Xfinity and underscores our shared focus on long-term customer value. Finally, following last year's introduction of Verizon's Total Wireless Protect, we expanded the offering to now include a more comprehensive loss and theft product.

Speaker #3: Third, we recently expanded our partnership with Xfinity Mobile through a new rate plan that includes lifetime device protection for phones, tablets, and watches, and includes a benefit that allows customers to receive a phone upgrade anytime.

Speaker #3: These benefits are embedded in Xfinity's Mobile Plus plan at a single bundled cost to customers. This milestone builds on our 10-year partnership with Xfinity and underscores our shared focus on long-term customer value.

Speaker #3: And finally, following last year's introduction of Verizon's Total Wireless Protect, we expanded the offering to now include a more comprehensive loss and theft product.

Speaker #3: In addition, we recently launched Straight Talk Protect, this collaboration represents our third prepaid brand with Verizon and further strengthens our footprint with this major carrier.

Keith Demmings: In addition, we recently launched Straight Talk Protect. This collaboration represents our third prepaid brand with Verizon and further strengthens our footprint with this major carrier. Our success over the last 2 years in Mobile has built extraordinary momentum. Our embedded scalable model demonstrates Mobile's multiple growth paths, deep client entanglement, and our innovation-led operating model. Turning to Global Automotive. Following an inflection year in 2025, earnings increased 23% in the quarter, benefiting from higher investment income and continued loss improvement. Our performance this quarter positions the business for continued growth in 2026 as we remain focused on solidifying and expanding existing partnerships and winning new business across the globe. To support future growth, we're advancing capabilities utilizing AI across the business.

Speaker #3: Our success over the last two years in mobile has built extraordinary momentum. Our embedded, scalable model demonstrates mobile's multiple growth paths, deep client entanglement, and our innovation-led operating model.

Speaker #3: Turning to global automotive, following an inflection year in 2025, earnings increased 23% in the quarter. Benefiting from higher investment income and continued loss improvement, our performance this quarter positions the business for continued growth in 2026 as we remain focused on solidifying and expanding existing partnerships and winning new business across the globe.

Speaker #3: To support future growth, we're advancing capabilities utilizing AI across the business. Throughout 2026, we'll be introducing new products and capabilities fueled by AI focused on enhancing dealership training, streamlining claims processing, and improving customer experience.

Keith Demmings: Throughout 2026, we'll be introducing new products and capabilities fueled by AI focused on enhancing dealership training, streamlining claims processing, and improving customer experience, while leveraging our scale to drive share gains with existing partners and win in the marketplace. Turning to Global Housing. Following 2025's performance, where we surpassed $1 billion in adjusted EBITDA excluding CATs, our Q1 results position us for solid underlying earnings growth in 2026, excluding prior year development. Underlying performance in the quarter was driven by double-digit top line growth in Homeowners. For the year, we continue to expect a combined ratio in the low to mid-80s. This excludes prior year development and reflects our full-year CAT assumption of $185 million. We differentiate housing's performance through strong returns, client retention, and renewal execution.

Speaker #3: While leveraging our scale to drive share gains with existing partners and win in the marketplace. Turning to global housing, following 2025's performance where we surpassed $1 billion in adjusted EBITDA, excluding cats, our first quarter results position us for solid underlying earnings growth in 2026, excluding prior year development.

Speaker #3: Underlying performance in the quarter was driven by double-digit top-line growth in homeowners. For the year, we continue to expect a combined ratio in the low to mid-80s.

Speaker #3: This excludes prior year development and reflects our full-year cat assumption of 185 million dollars. We differentiate housing's performance through strong returns, client retention, and renewal execution.

Speaker #3: During the first quarter, we completed two long-term renewals with large lender-placed partners representing over 5 million loans. As we look at the remainder of 2026, we see clear opportunities to further build upon our market-leading position as we execute on our robust new business pipeline.

Keith Demmings: During the first quarter, we completed two long-term renewals with large Lender-Placed partners representing over 5 million loans. As we look at the remainder of 2026, we see clear opportunities to further build upon our market-leading position as we execute on our robust new business pipeline. In Renters, we continue to see strength in our property management company channel, supporting ongoing growth in policies and reinforcing the effectiveness of our strategy. This channel continues to grow premiums double digits as today we serve 6 of the top 10 PMCs. Our partners are realizing significant benefits from our platform. Throughout 2026, we remain focused on scaling our latest version of Cover360, which is driving double-digit penetration and premium lift across our PMC client base. Assurant continues to differentiate our performance while reinforcing our attractive valuation and compelling investment profile.

Speaker #3: In renters, we continue to see strength in our property management company channel. Supporting ongoing growth in policies and reinforcing the effectiveness of our strategy.

Speaker #3: This channel continues to grow premiums double digits, as today we serve six of the top 10 PMCs. Our partners are realizing significant benefits from our platform.

Speaker #3: Throughout 2026, we remain focused on scaling our latest version of Cover 360, which is driving double-digit penetration in premium lift across our PMC client base.

Speaker #3: Assurant continues to differentiate our performance while reinforcing our attractive valuation and compelling investment profile. Our differentiated portfolio of lifestyle and housing businesses continues to deliver diversified earnings and cash flow, supporting strong returns, robust cash flow, and attractive growth with lower volatility.

Keith Demmings: Our differentiated portfolio of lifestyle and housing businesses continues to deliver diversified earnings and cash flow, supporting strong returns, robust cash flow, and attractive growth with lower volatility. Since 2020, we've grown adjusted EBITDA at an 11% compounded annual growth rate while growing adjusted EPS at a 17% CAGR, both excluding catastrophes. This was supported by strong returns, generating an average ROE of approximately 14% and a return on tangible equity over 30%. Our outperformance against the broader S&P 1500 P&C group demonstrates our multi-year track record of differentiated results. Over the last 5 years, we've outperformed the group median for adjusted EBITDA and EPS, including CATs, and in line or better when excluding CATs. Finally, I'll provide an update on Assurant Home Warranty.

Speaker #3: Since 2020, we've grown adjusted EBITDA at an 11% compounded annual growth rate. While growing adjusted EPS at a 17% CAGR, both excluding catastrophes. This was supported by strong returns generating an average ROE of approximately 14% and a return on tangible equity over 30%.

Speaker #3: Our outperformance against the broader S&P 1500 P&C group demonstrates our multi-year track record of differentiated results. Over the last five years, we've outperformed the group median for adjusted EBITDA and EPS, including cats, and in line or better when excluding cats.

Speaker #3: Finally, I'll provide an update on Assurant Home Warranty. While we're still very early, the launch of our new long-term relationship with Compass International Holdings spanning six US real estate brands continues to progress well.

Keith Demmings: While we're still very early, the launch of our new long-term relationship with Compass International Holdings, spanning six US real estate brands, continues to progress well. As we ramp, we're working closely with Compass to drive agent education, marketing, product penetration, and a positive customer experience. We believe our home warranty solutions are resonating in the market, reinforcing our confidence in both our strategy and our ability to scale over time. For Assurant overall, Q1 was a strong start to the year, supported by the durability of our earnings model, the strength of our partnerships, and our disciplined execution across the enterprise. We are proud of the long-term performance we've continued to drive, delivering consistently, investing for growth, and creating value for shareholders. I'll now turn the call over to Keith Meier to speak to the underlying growth levers of our business, including our updated 2026 outlook.

Speaker #3: As we ramp, we're working closely with Compass to drive agent education, marketing, product penetration, and a positive customer experience. We believe our home warranty solutions are resonating in the market, reinforcing our confidence in both our strategy and our ability to scale over time.

Speaker #3: For Assurant overall, first quarter was a strong start to the year, supported by the durability of our earnings model, the strength of our partnerships, and our disciplined execution across the enterprise.

Keith Demmings: For Assurant overall, Q1 was a strong start to the year, supported by the durability of our earnings model, the strength of our partnerships, and our disciplined execution across the enterprise. We are proud of the long-term performance we've continued to drive, delivering consistently, investing for growth, and creating value for shareholders. I'll now turn the call over to Keith Meier to speak to the underlying growth levers of our business, including our updated 2026 outlook. With that, Keith, over to you.

Speaker #3: We are proud of the long-term performance we've continued to drive, delivering consistently, investing for growth, and creating value for shareholders. I'll now turn the call over to Keith Meier to speak to the underlying growth levers of our business, including our updated 2026 outlook.

Speaker #3: With that, Keith, over to you.

Keith Demmings: With that, Keith, over to you.

Speaker #2: Thanks, Keith. And good morning, everyone. 2026 is off to an excellent start. We're excited about our performance and our increased outlook for the full year.

Keith Meier: Thanks, Keith. Good morning, everyone. 2026 is off to an excellent start. We're excited about our performance and our increased outlook for the full year. We're operating from a position of strength, reflecting our powerful B2B2C distribution strategy in both Global Lifestyle and Global Housing. We continue to embed innovation across everything we do, deploying technology enhancements, including AI and automation, to drive simpler, faster, and more consistent outcomes for our clients and customers. Our results this quarter are the product of disciplined execution and our commitment to operational excellence as we deliver differentiated customer experiences and attractive returns for shareholders. Before reviewing our updated 2026 outlook, let me start by highlighting our strong first quarter results, beginning with Global Lifestyle. First quarter adjusted EBITDA increased 20% or $39 million compared to last year.

Speaker #2: We're operating from a position of strength, reflecting our powerful B2B2C distribution strategy in both lifestyle and housing. We continue to embed innovation across everything we do, deploying technology enhancements including AI and automation, to drive simpler, faster, and more consistent outcomes for our clients and customers.

Speaker #2: Our results this quarter are the product of disciplined execution and our commitment to operational excellence as we deliver differentiated customer experiences and attractive returns for shareholders.

Speaker #2: Before reviewing our updated 2026 outlook, let me start by highlighting our strong first quarter results beginning with Global Lifestyle. First quarter adjusted EBITDA increased 20%, or 39 million dollars, compared to last year.

Speaker #2: Results included a 13 million dollar real estate joint venture gain of which 10 million dollars was in global automotive. Within connected living, EBITDA growth was 18%, or 22 million dollars.

Keith Meier: Results included a $13 million real estate joint venture gain, of which $10 million was in Global Automotive. Within Connected Living, EBITDA growth was 18% or $22 million, led by continued expansion with existing clients and optimization of recently added programs. Strong growth within our mobile device protection programs was supported by the addition of over 4 million subscribers across our US and international partnerships, including T-Mobile's conversion of UScellular to Assurant. In global trade-in and reverse logistics, we processed nearly 7.5 million devices, an increase of approximately 2 million, driven by our reverse logistics programs and underlying organic growth. In Global Automotive, adjusted EBITDA increased 23% or $17 million, including $10 million from the real estate gain. Excluding that gain, earnings in Global Auto increased 9% or $7 million.

Speaker #2: Led by continued expansion with existing clients, an optimization of recently growth within our mobile device protection programs was supported by the addition of over 4 million subscribers across our US and international partnerships.

Speaker #2: Including T-Mobile's conversion of U.S. Cellular to Assurant, in global trade-in and reverse logistics, we processed nearly 7.5 million devices, an increase of approximately 2 million.

Speaker #2: Driven by our reverse logistics programs, an underlying organic growth. In global automotive, adjusted EBITDA increased 23%, or 17 million dollars, including 10 million dollars from the real estate gain.

Speaker #2: Excluding that gain, earnings in Global Auto increased 9%, or $7 million. This growth was driven by continued improvement in loss experience following prior eight actions, enhancements to claims processes and product designs within our vehicle service contract offerings, and improved performance in our Guaranteed Asset Protection, or GAP, product.

Keith Meier: This growth was driven by continued improvement in loss experience following prior rate actions, enhancements to claims processes and product designs within our vehicle service contract offerings, and improved performance in our Guaranteed Asset Protection or GAP product. For Global Lifestyle overall, net earned premiums, fees, and other income grew 11%, primarily driven by Connected Living growth from mobile trade-in and global protection programs, as well as the recent launch of our partnership with Best Buy. Moving to Global Housing. Q1 adjusted EBITDA was $237 million, including $24 million of reportable catastrophes. Excluding cats, adjusted EBITDA was $261 million. Absent the impacts of lower favorable prior period reserve development, underlying results were level year over year. Q1 results included a more normalized non-cat loss ratio of approximately 38%, excluding prior year development, aligned with our expectations.

Speaker #2: For global lifestyle overall, net earned premiums, fees, and other income grew 11%, primarily driven by connected living growth from mobile trade-in and global protection programs, as well as the recent launch of our partnership with Best housing, first quarter adjusted EBITDA was 237 million dollars, including 24 million dollars of reportable catastrophes.

Speaker #2: Excluding cats, adjusted EBITDA was 261 million dollars. Absent the impacts of lower favorable prior period reserve development, underlying results were level year over year.

Speaker #2: First quarter results included a more normalized non-cat loss ratio of approximately 38%. Excluding prior year development, aligned with our expectations. This compared to a loss ratio in first quarter of 2025 that was lower than typical.

Keith Meier: This compared to a loss ratio in Q1 2025 that was lower than typical. Strong growth from higher enforced policies and average premiums in Lender-Placed allowed us to offset a more normalized loss ratio. Additionally, we saw growth from specialty products and higher investment income. Turning to our cat reinsurance program. We are very pleased with the outcome of our 2026 program placement, which was finalized on 1 April. Through our continued partnership with roughly 40 highly rated reinsurers, we secured strong coverage once again with more favorable terms than the prior year. Our per event retention of $160 million is consistent with our retention from our 2025 program, representing a 1 in 5 year probable maximum loss or PML.

Speaker #2: Strong growth from higher enforced policies and average premiums in lender-placed allowed us to offset a more normalized loss ratio. Additionally, we saw growth from specialty products and higher investment income.

Speaker #2: Turning to our cat reinsurance program, we are very pleased with the outcome of our 2026 program placement, which was finalized on April 1. Through our continued partnership with roughly 40 highly rated reinsurers, we secured strong coverage once again with more favorable terms than the prior year.

Speaker #2: Our per event retention of 160 million dollars is consistent with our retention from our 2025 program. Representing a one in five year probable maximum loss, or PML.

Speaker #2: Our main US program provides nearly 1.6 billion dollars of loss coverage in excess of our retention. Protecting Assurant and its policyholders against severe events for up to a one in 265 year PML.

Keith Meier: Our main US program provides nearly $1.6 billion of loss coverage in excess of our retention, protecting Assurant and its policyholders against severe events for up to a 1 in 265 year PML. Our protection in Florida is even more robust with $1.8 billion of loss coverage in excess of our retention. In terms of costs, our 2026 catastrophe reinsurance premiums are estimated to be approximately $180 million compared to approximately $200 million in 2025. The reduction reflects favorable market pricing, the strength of our portfolio, and lower Florida exposures. Lastly, in Corporate and Other, first quarter adjusted EBITDA loss was -$32 million, which includes investments made in our home warranty business. Turning to capital.

Speaker #2: Our protection in Florida is even more robust with 1.8 billion dollars of loss coverage in excess of our retention. In terms of costs, our 2026 catastrophe reinsurance premiums are estimated to be approximately 180 million dollars, compared to approximately 200 million dollars in 2025.

Speaker #2: The reduction reflects favorable market pricing, the strength of our portfolio, and lower Florida exposures. Lastly, in Corporate and Other, first quarter adjusted EBITDA loss was $32 million.

Speaker #2: Which includes investments made in our home warranty business. Turning to capital, our liquidity position at quarter end was 836 million dollars. Providing flexibility to continue to invest in growth, return capital to shareholders, and support future opportunities that enable Assurant to drive innovation for our clients and customers.

Keith Meier: Our liquidity position at quarter end was $836 million, providing flexibility to continue to invest in growth, return capital to shareholders, and support future opportunities that enable Assurant to drive innovation for our clients and customers. This quarter, we returned $169 million to our shareholders, including $125 million of share repurchases and $44 million in dividends. Our strong capital position allowed us the flexibility to accelerate our repurchase plans during Q1. Through 1 May, we repurchased an additional $30 million. Over the remainder of the year, we'll continue to evaluate capital deployment opportunities using a disciplined and balanced approach. Let's move on to our outlook for 2026.

Speaker #2: This quarter we returned 169 million dollars to our shareholders, including 125 million dollars of share repurchases and 44 million dollars in dividends. Our strong capital position allowed us the flexibility to accelerate our repurchase plans during the first quarter.

Speaker #2: Through May 1st, we've repurchased an additional 30 million dollars. Over the remainder of the year, we'll continue to evaluate capital deployment opportunities using a disciplined and balanced approach.

Speaker #2: Let's move on to our outlook for 2026. We now expect full-year adjusted EBITDA and earnings per share to grow low single digits, both excluding cats.

Keith Meier: We now expect full-year adjusted EBITDA and earnings per share to grow low single digits, both excluding CATs, overcoming $94 million of lower favorable prior year reserve development. This includes $113 million in 2025 and $19 million in Q1 2026. Excluding the impact of prior year development, we expect high single digit underlying growth in both adjusted EBITDA and earnings per share excluding CATs. Global Lifestyle is expected to lead the growth for Assurant. We're increasing our outlook for Lifestyle and now expect growth of approximately 10%, reflecting our strong Q1 results. Connected Living results for the year will benefit from continued optimization of new programs, expansion with existing clients, and contributions from recently announced new programs and capabilities, demonstrating the returns we've achieved through previous investments.

Speaker #2: Overcoming 94 million dollars of lower favorable prior year reserve development. This includes 113 million dollars in 2025 and 19 million dollars in the first quarter of 2026.

Speaker #2: Excluding the impact of prior year development, we expect high single digit underlying growth in both adjusted EBITDA and earnings per share excluding cats. Global lifestyle is expected to lead the growth for Assurant.

Speaker #2: We're increasing our outlook for lifestyle and now expect growth of approximately 10%. Reflecting our strong first quarter results. Connected living results for the year will benefit from continued optimization of new programs expansion with existing clients, and contributions from recently announced new programs and capabilities demonstrating the returns we've achieved through previous investments.

Speaker #2: Global auto is expected to grow from higher investment income continued loss improvement and growth of global partnerships. Turning to global housing, our outlook has improved and we now expect earnings to decline only modestly excluding cats.

Keith Meier: Global Auto is expected to grow from higher investment income, continued loss improvement, and growth of global partnerships. Turning to Global Housing. Our outlook has improved, and we now expect earnings to decline only modestly excluding cats.

Speaker #2: Absent prior year development, we continue to expect solid underlying growth for the full year. Consistent with our past approach, our 2026 outlook does not contemplate potential prior year reserve development for the remainder of the year.

Keith Meier: Absent prior year development, we continue to expect solid underlying growth for the full year. Consistent with our past approach, our 2026 outlook does not contemplate potential prior year reserve development for the remainder of the year. In Lender-Placed, we expect growth to be driven by higher track loans and enforced policy growth from expected new client wins and the continued hardening of the voluntary Homeowners market. From a placement rate perspective, we anticipate some quarterly fluctuations from client loan movements during the year. From a capital perspective, our strong cash generation creates flexibility, enabling us to reinvest for growth, including M&A, and return excess capital to shareholders.

Speaker #2: In lender place, we expect growth to be driven by higher tracked loans and enforced policy growth from expected new client wins and the continued hardening of the voluntary homeowners market.

Speaker #2: From a placement rate perspective, we anticipate some quarterly fluctuations from client loan movements during the year. From a capital perspective, our strong cash generation creates flexibility enabling us to reinvest for growth including M&A and return excess capital to shareholders.

Speaker #2: For 2026, we now expect share repurchases of 300 million dollars to 350 million dollars which is at the high end of our initial range from the beginning of the year and is subject to M&A and other market conditions.

Keith Demmings: For 2026, we now expect share repurchases of $300 to 350 million, which is at the high end of our initial range from the beginning of the year and is subject to M&A and other market conditions. Our Q1 results demonstrate the strength and consistency of Assurant differentiated business model. We look forward to executing on our increased financial objectives while delivering results for our clients and shareholders throughout the year. With that, operator, please open the call for questions.

Speaker #2: Our first quarter results demonstrate the strength and consistency of Assurant's differentiated business model. We look forward to executing on our increased financial objectives while delivering results for our clients and shareholders throughout the year.

Speaker #2: With that operator, please open the call for questions.

Speaker #1: Thank you. The floor is now open for questions. If you would like to ask a question, please click on the raise hand button which can be found on the black bar at the bottom of your screen.

Operator: Thank you. The floor is now open for questions. If you would like to ask a question, please click on the Raise Hand button, which can be found on the black bar at the bottom of your screen. When it is your turn, you will receive a message on your screen from the host allowing you to talk, and then you will hear your name called. Please accept, unmute your audio and ask your question. We will wait one moment to allow the queue to form.

Speaker #1: When it is your turn, you will receive a message on your screen from the host allowing you to talk and then you will hear your name called.

Speaker #1: Please accept, unmute your audio, and ask your question. We will wait one moment to allow the cue to form.

Mark Hughes: Good morning.

Speaker #3: Good morning.

Speaker #4: Good morning, Mark.

Keith Demmings: Morning, Mark. Hey, Mark.

Speaker #5: Hey, Mark.

Speaker #3: Hello. The connected living results are quite strong in the quarter can you talk about the kind of your longer-term view on that business up 18% earnings got a good slide on a lot of the new business wins and renewals are you thinking that that is a faster growth business or are we just kind of hitting it at a good peak here where you're executing on the pipeline but it may not be sustained at this level?

Mark Hughes: Hello. The Connected Living.

Keith Demmings: Morning

Mark Hughes: Results are quite strong in the quarter. Can you talk about the kind of your longer-term view on that business, up 18% earnings? Got a good slide on a lot of the new business wins and renewals. Are you thinking that that is a faster growth business, or are we just kind of hitting it at a good peak here where you're executing on the pipeline, you know, but it may not be sustained at this level?

Speaker #4: Yeah, I mean, it certainly is a fantastic start to the year overall and if you look back the last three years or so we've grown our EBITDA and EPS overall double digits in a fantastic way to start the year this year with significant performance our best year our best quarter sorry in history and then lifestyle obviously delivering outstanding results.

Keith Demmings: I mean it's certainly a fantastic start to the year overall. You know, if you look back the last 3 years or so, we've grown our EBITDA and EPS overall double digits and a fantastic way to start the year this year with, you know, significant performance. Our best quarter, sorry, in history. Global Lifestyle obviously delivering outstanding results. I think when I look at it, I'd probably highlight 3 big drivers. First is you've seen the scaling of our device protection subscriber counts over the last year. It's up at 4.3 million subs year-over-year. That's a lot of hard work, a lot of innovation with partners. We've, you know, done incredible things with our cable partners. We've launched new clients like Total Wireless, which is contributing significantly.

Speaker #4: So I think when I look at it I probably highlight three big drivers. First is you've seen the scaling of our device protection subscriber counts over the last year it's up at 4.3 million subs year over year.

Speaker #4: And that's a lot of hard work a lot of innovation with partners we've done incredible things with our cable partners we've launched new clients like Total Wireless which has contributing significantly.

Speaker #4: We've launched programs internationally with clients like Telstra and then obviously with US Cellular and our relationship with T-Mobile that's driving a lot of momentum across the board for our protection business.

Keith Demmings: We've launched programs internationally, with clients like Telstra. Obviously with UScellular and our relationship with T-Mobile, that's driving a lot of momentum across the board for our protection business. That's certainly the biggest driver of our overall outperformance in Connected Living. We're maturing some of the non-mobile programs that we've announced to the market as well. Our relationship with Best Buy being one example. Our relationship with Chase. These are two really important clients for us, and they're growing and contributing nicely. Finally, you saw a lot of growth in devices serviced, not just from our trade-in programs maturing and driving organic growth, but also the investments we've made in reverse logistics. It does feel like we're in a great position. I feel great about how we look for the future.

Speaker #4: That's certainly the biggest driver of our overall outperformance in Connected Living, but I'd also say we're maturing some of the non-mobile programs that we've announced to the market as well.

Speaker #4: Our relationship with Best Buy being one example our relationship with Chase these are two really important clients for us and they're growing and contributing nicely and then finally you saw a lot of growth in devices serviced not just from our trade-in programs maturing and driving organic growth but also the investments we've made in reverse logistics.

Speaker #4: So, it does feel like we're in a great position. I feel great about how we look for the future.

Mark Hughes: I might ask, I don't know if you think of it this way, but the market share that you have got, if you kind of put the main Verizon, AT&T programs to the side, I'm sure that's within your target area. If you look at the size of the market, aside from those two big pieces of business, how much share do you think you have? How much more opportunity is there for further growth?

Speaker #3: I'd like to ask I don't know if you think of it this way but the market share that you have got if you kind of put the main Verizon AT&T programs to the side I'm sure that's within your target area.

Speaker #3: But if you look at the size of the market aside from those two big pieces of business how much share do you think you have how much more opportunity is there for further growth?

Speaker #4: Yeah, I still think there's a lot of white space in this market particularly as we think about the globe. We're in obviously more than 20 countries around the world.

Keith Demmings: Yeah, I still think there's a lot of white space in this market, particularly as we think about the globe. You know, we're in obviously more than 20 countries around the world. Programs continue to mature. I think the product set continues to evolve. We've got a really deep value chain that we deliver across a wide range of services. I think there's a tremendous amount of upside and, you know, we're innovating, we're winning with new entrants, and we're scaling in a way that's meaningful. I do feel really good about that. Maybe Keith, you want to add?

Speaker #4: Programs continue to mature I think the product set continues to evolve. We've got a really deep value chain that we deliver across a wide range of services.

Speaker #4: So I think there's a tremendous amount of upside and we're innovating we're winning with new entrants and we're scaling in a way that's meaningful.

Speaker #4: So I do feel really good about that. And then maybe Keith you want to add?

Speaker #5: And I think when you think about connected living overall on top of that we have opportunities in the extended service contract side and you saw that with Best Buy.

Keith Meier: I think when you think about Connected Living overall on top of that, you know, we have opportunities in the extended service contract side, and you saw that with Best Buy. We also have our financial services business performing well with the addition of Chase and other marquee clients. I think when you look at Connected Living, you know, in terms of what the opportunities are in the future, I think there's a lot of white space and opportunities ahead.

Speaker #5: And we also have our financial services business performing well with the addition of Chase and other marquee clients. So I think when you look at connected living in terms of what the opportunities are in the future I think there's a lot of white space and opportunities ahead.

Speaker #3: Appreciate that. Thank you.

Mark Hughes: Appreciate that. Thank you.

Speaker #5: You're welcome.

Keith Demmings: You're welcome.

Operator: Our next.

Speaker #4: Thanks, Mark.

Keith Demmings: Thanks, Mark.

Speaker #1: Our next question comes from Tommy McJoint with Keith Brighton Woods. Please unmute your line and ask your question.

Operator: Our next question comes from Tommy McJoynt with Keefe, Bruyette & Woods. Please unmute your line and ask your question.

Speaker #4: Hey, Tommy. Good morning.

Keith Meier: Hey, Tommy. Morning, morning.

Speaker #6: Hey, good morning, guys. Staying on this same topic here you've had some really good success with those two largest carriers in the US being Verizon and AT&T.

Tommy McJoynt: Hey, good morning, guys. Staying on this same topic here, you've had some really good success with those two largest carriers in the US, being Verizon and AT&T. Can you start off just rehashing, you know, reminding us all of the services that you're now providing for each of those carriers?

Speaker #6: Can you start off just rehashing reminding us all of the services that you're now providing for each of those carriers?

Speaker #4: Yeah. Happy to do it. Certainly at a high level and you're right. I mean, we've been making progress really across the board in the US with every major operator.

Keith Demmings: Yeah. Happy to do it at, certainly at a high level. You're right. I mean, we've been making progress really across the board in the US with every major operator, you know. If you think back to the acquisition that we made of HYLA Mobile back in 2020, a big part of that was they did a lot of great work with partners that we weren't necessarily doing as much with. With Verizon, certainly, the growth that we've seen on the prepaid side, we support their Visible brand, their Total brand, and now Straight Talk Wireless. It's a fantastic relationship. We're innovating and launching new products, and we're super excited there. We provide a range of supply chain related services as well.

Speaker #4: And if you think back to the acquisition that we made of Hyla back in 2020 a big part of that was they did a lot of great work with partners that we weren't necessarily doing as much with.

Speaker #4: So with Verizon certainly the growth that we've seen on the prepaid side we support their Visible brand. Their Total brand and now Straight Talk Wireless.

Speaker #4: And it's a fantastic relationship. We're innovating and launching new products, and we're super excited there. We provide a range of supply chain-related services as well.

Speaker #4: And then with AT&T we do a lot of work around the supply chain historically a big trade-in partner for us and to your point long-term opportunity it's all about building deep relationships solving problems building trust over time and then looking to find creative ways to innovate.

Keith Demmings: With AT&T, we do a lot of work around the supply chain. Historically, a big trade-in partner for us. To your point, long-term opportunity. It's all about building deep relationships, solving problems, building trust over time, and then looking to find creative ways, you know, to innovate.

Speaker #6: Thanks for that. And your remarks there are sort of noting the fact that these large carriers often have different prepaid brands—something that I had admittedly overlooked.

Tommy McJoynt: Thanks for that. Your remarks there sort of noting the fact that these large carriers often have different prepaid brands, you know, something that I had admittedly overlooked. Does a similar dynamic exist on the postpaid side such that there could be an opportunity to win select postpaid segments for the big carriers, or are those more of an all or nothing nationally campaign?

Speaker #6: Does a similar dynamic exist on the postpaid side such that there could be an opportunity to win select postpaid segments for the big carriers or are those more of an all-or-nothing nationally campaign?

Speaker #4: Yeah, I think, I mean, you could think of it—there's certainly opportunities if you separate consumer from enterprise, so you could have postpaid customers that are consumer-branded versus enterprise-branded, small business, etc.

Keith Demmings: Yeah, I think, I mean, you could think of it, there's certainly opportunities if you separate consumer from enterprise. You know, you could have postpaid customers that are consumer branded versus enterprise branded small business, et cetera. Generally speaking, most of the postpaid is under a single brand, and it's managed by a single provider. Not to say you couldn't have variation to that over time, but that's typically how it works.

Speaker #4: But generally speaking most of the postpaid is under a single brand and it's managed by a single provider. Not to say you couldn't have variation to that over time but that's typically how it works.

Speaker #6: Thank you.

Tommy McJoynt: Thank you.

Speaker #4: You bet.

Keith Demmings: You bet.

Operator: Our next question comes from Jeff Schmitt with William Blair.

Speaker #1: Our next. Our next question comes from Jeff Schmidt with William Blair. You may now unmute your audio and ask your question.

Operator: Our next question comes from Jeff Schmitt with William Blair.

Speaker #7: Hi, good morning.

Jeff Schmitt: Hi, good morning.

Speaker #4: How are you, Jeff?

Keith Demmings: Hi, Jeff.

Keith Meier: Hey, Jeff.

Speaker #5: Hey, Jeff.

Jeff Schmitt: Hi. Could you talk about your growth strategy for the new home warranty business, just in terms of building that out beyond the Compass partnership and how you plan on doing that? Are you building out the contractor network as well there?

Speaker #7: Hi. Could you talk about your growth strategy for the new home warranty business, just in terms of building that out beyond the Compass partnership, and how you plan on doing that?

Speaker #7: And are you building out the contractor network as well there?

Speaker #4: Yeah. I mean, we absolutely are. I think first thing I'd say is we're super happy with the partnership we have with Compass. Obviously, we're still very early in terms of the ramp and the rollout but there's complete alignment about the importance of delivering for customers keeping the agents at the center of everything that we do.

Keith Demmings: Yeah. I mean, we absolutely are. I think, you know, first thing I'd say is we're super happy with the partnership we have with Compass. Obviously, we're still very early in terms of the ramp and the rollout, but there's complete alignment about the importance of delivering for customers, keeping the agents at the center of everything that we do, and then leveraging technology to integrate the offer naturally into the real estate process. I feel really good. Volumes are ramping. The agents continue to get educated about our solution. I would say our, you know, our message and our vision of what we're trying to do is definitely resonating in the market.

Speaker #4: And then leveraging technology to integrate the offer naturally into the real estate process. So I feel really good volumes are ramping. The agents continue to get educated about our solution and I would say our message and our vision of what we're trying to do is definitely resonating in the market.

Keith Demmings: In terms of other opportunity, yeah, right now we're certainly having many conversations with potential long-term partners, whether that's with current affinity clients that we do business with today or whether it's looking at additional opportunities to serve the real estate sector. I feel good. There's multiple ways for us to drive growth, and I think our solution is unique, and our story is resonating. I'm super happy about where we're headed. Maybe, Meier, you wanna add?

Speaker #4: In terms of other opportunity, yeah. I mean, right now we're certainly having many conversations with potential long-term partners whether that's with current affinity clients that we do business with today or whether it's looking at additional opportunities to serve the real estate sector.

Speaker #4: I feel good. There's multiple ways for us to drive growth and I think our solution is unique and our story is resonating. So I'm super happy about where we're headed.

Speaker #4: But maybe Maya, you want to add?

Speaker #5: Yeah. And Jeff, you mentioned the contractor that we have clients like Best Buy and Lowe's where we do a tremendous amount of appliance and all the related services in the home.

Keith Meier: You know, Jeff, you mentioned the contractor network. When you think about that, we have clients like Best Buy and Lowe's where we do a tremendous amount of appliance and all the related services in the home, and then we have other programs as well that round out several of the other home warranty services. We have actually a very robust network that I think positions us in even stronger and better ways than some of the traditional players, and we are able to leverage that.

Speaker #5: And then we have other programs as well that round out several of the other home warranty services. So we have actually a very robust network that I think positions us in even stronger and better ways than some of the traditional players.

Speaker #5: And we're able to leverage that.

Keith Demmings: Remember, we've been working on this rollout for well over 1 year to bring this to market in terms of the product, the service network, and the full solution set. This is not something we started 3 months ago, even though that's what it feels like in terms of the announcement in the market.

Speaker #4: And remember, we've been working on this rollout for well over a year. To bring this to market in terms of the product, the service network, and the full solution set.

Speaker #4: So this is not something we started three months ago even though that's what it feels like in terms of the announcement in the market.

Speaker #5: Right. Right.

Jeff Schmitt: Right. Right. Okay. How much revenue is the new Best Buy legacy book adding in Global Lifestyle? Are those products, do they typically have multiyear contracts? You know, how should we think about that ramp? Is it over one year, over a couple of years? Thanks.

Speaker #7: Okay. And then how much revenue is the new Best Buy legacy book adding in global lifestyle? And are those products do they typically have multi-year contracts?

Speaker #7: How should we think about that ramp? Is it over one year, over a couple of years? Things?

Speaker #5: Yeah, Jeff. And you should think about it as definitely there's a mix of shorter-term and longer-term contracts. So they can range from a couple of years to five years, that kind of range.

Keith Meier: Yeah, Jeff, you should think about it as, definitely there's a mix of shorter term and longer term contracts. They can range from a couple of years to 5 years, that kind of range. Those earn over time. We also did the assumption in the Q4 as well, so that will help some of those earnings coming through faster than they would have otherwise. Overall, you should see that, you know, evolving over the coming several years.

Speaker #5: So those earn over time. And we also did the assumption in the fourth quarter as well. So that will help some of those earnings coming through faster than they would have otherwise.

Speaker #5: But overall, you should see that evolving over the coming several years.

Speaker #7: Okay. Great. Thank you.

Jeff Schmitt: Okay, great. Thank you.

Speaker #5: You're welcome.

Keith Meier: You're welcome.

Speaker #1: Our next question comes from Charlie Lederer with BMO Capital Markets. Please unmute your audio and ask your question.

Operator: Our next question comes from Charlie Lederer with BMO Capital Markets. Please unmute your audio and ask your question.

Speaker #7: Hey, good morning.

Charlie Lederer: Hey, good morning.

Keith Demmings: Morning, Charlie.

Keith Meier: Hello, Charlie.

Speaker #5: Hello, Charlie.

Tommy McJoynt: Hi.

Charlie Lederer: Hi. On the new announcements in mobile, is there any sort of upfront spending you'd call out that we should think about as offsetting the strong growth in EBITDA in Lifestyle that you're experiencing? More broadly, can you help dimension the impact and ramp we should expect on those programs?

Speaker #7: Hi. I'm the new announcements in mobile. Is there any sort of upfront spending you'd call out that we should think about as offsetting the strong growth in EBITDA in lifestyle that you're experiencing?

Charlie Lederer: On the new announcements in mobile, is there any sort of upfront spending you'd call out that we should think about as offsetting the strong growth in EBITDA in Lifestyle that you're experiencing? More broadly, can you help dimension the impact and ramp we should expect on those programs?

Speaker #7: And more broadly, can you help to mention the impact and ramp we should expect on those programs?

Keith Demmings: Sure, you know, certainly UScellular was a move of an in-force block, so that starts to contribute immediately. There's a little bit of investment upfront to bring that to life, but that's behind us at this point. I would suggest that's immediately accretive as we think about the run rate going forward. The other three examples, I would say they'll be accretive to EBITDA in aggregate certainly this year. There's not a big investment spend I would call out. I think they'll contribute positively this year, then they'll ramp more naturally over time. It's certainly not a drag as we think about 2026.

Speaker #4: Sure. Certainly, US cellular was a move of an enforced block. So that starts to contribute immediately. There's a little bit of investment upfront to bring that to life.

Speaker #4: But that's behind us at this point. So I would suggest that's immediately a creative as we think about the run rate going forward. The other three examples I would say they'll be a creative to EBITDA in aggregate certainly this year.

Speaker #4: So there's not an big investment spend I would call out. I think they'll contribute positively this year. And then they'll ramp more naturally over time.

Speaker #4: But it's certainly not a drag as we think about '26.

Charlie Lederer: Thanks. Maybe just on auto, you're clearly starting to get better results. Do you feel like you're out of the woods on loss costs there? You know, written premiums were down a little bit in the quarter, and I'd imagine you're still feel fairly early days as far as being on risk on some of the policies that were underwritten in that, you know, inflationary 2022 timeframe. Can you give us a sense, I guess, on claims frequency of those vintages too? Thanks.

Speaker #7: Thanks. And then maybe just on auto, you're clearly starting to get better results. Do you feel like you're out of the woods on lost costs there?

Speaker #7: Written premiums were down a little bit in the quarter and I'd imagine you're still fairly early days as far as being on risk on some of the policies that were underwritten in that inflationary '22 timeframe.

Speaker #7: Can you give us a sense, I guess, on claims frequency of those vintages too? Thanks.

Keith Meier: Yeah. I would say, you know, last year we talked about being a bit of an inflection year for us. You know, we've seen that roll into this year. Auto had a good quarter. You know, we had favorable loss experience continuing, that also is aided by our prior rate increases, the enhancements we've been making to the claims processes, the product designs that we've been working on with our clients. I think overall it really speaks to the success that our Auto team has been having in working with our clients to, you know, to arrive at mutually beneficial outcomes. Overall I think that we feel good about where that business is today.

Speaker #5: Yeah. I would say last year we talked about being a bit of an inflection year for us. And we've seen that roll into this year.

Speaker #5: Auto had a good quarter. We had favorable loss experience continuing and that also is aided by our prior rate increases. The enhancements we've been making to the claims processes, the product designs that we've been working on with our clients.

Speaker #5: And I think overall, it really speaks to the success that our auto team has been having and working with our clients to arrive at mutually beneficial outcomes.

Speaker #5: So overall, I think the that we feel good about where that business is today.

Speaker #7: Thanks. And just lastly, did you guys update your CAT outlook? I don't know if I missed that for the full year.

Charlie Lederer: Thanks. Just lastly, did you guys update your CAT outlook? I don't know if I missed that for the full year.

Speaker #5: Yeah. So our CAT assumption for this year is 185 million. Up modestly from 175 last year. And that's mainly due to the growth of the business.

Keith Meier: Yeah. Our CAT assumption for this year is $185 million, up modestly from $175 million last year, and that's mainly due to the growth of the business. You know, I would say in terms of our CAT reinsurance, you know, we were very pleased with the coverage that we secured this year. Our program costs are expected to be about $180 million this year, down about $20 million from the $200 million from last year. I think that really reflects the favorable market pricing that was out there, the strength of our performance of our portfolio, and then also we have a little bit lower Florida exposure.

Speaker #5: And I would say in terms of our CAT reinsurance, we were very pleased with the coverage that we secured this year. Our program costs are expected to be about 180 million.

Speaker #5: This year, down about $20 million from the $200 million from last year. And I think that really reflects the favorable market pricing that was out there, the strength of our performance of our portfolio, and then also we have a little bit lower Florida exposures.

Speaker #5: So overall, we've been pleased with how that's come together. And that kicks in or kicked in on April 1st. And from a comparative rate standpoint from last year, we were down north of 20%.

Keith Meier: Overall, we've been pleased with how that's come together and that kicks in or kicked in on 1 April. From a, you know, comparative rate standpoint from last year, we were down north of 20%. Overall the outcome I think was very positive and we kind of stayed in that 1 in 5-year PML for the retention and at the top of the tower about 1 in 265 years. Pretty consistent from last year.

Speaker #5: And so overall, the outcome I think was very positive. And we kind of stayed in that one in five-year PML for the retention. And at the top of the tower, about one in 265 years.

Speaker #5: So pretty consistent from last year.

Speaker #7: Maybe just a quick follow-up on that. I mean, should we think about the seasonality of your CAT load being a little different just given the geographic shifts?

Charlie Lederer: Maybe just a quick follow-up on that. I mean, should we think about the seasonality of your CAT load, you know, being a little different just given the geographic, you know, shifts that you're speaking to?

Speaker #7: That you're speaking to?

Speaker #5: Yeah. I think as it has been historically, I think the latter half of the year with the hurricane season is typically the where it would be weighted more so to that.

Keith Meier: Yeah. I think it's, as it has been historically, I think the H2, you know, with the hurricane season is typically the, you know, where it would be weighted more so to that, obviously mostly in the Q3-ish kind of timeframe.

Speaker #5: And obviously, mostly in the third quarter-ish kind of timeframe.

Speaker #7: Thank you.

Charlie Lederer: Thank you.

Speaker #5: You're welcome.

Keith Meier: Welcome.

Speaker #1: Our next question comes from Brian Meredith with UBS. Please unmute your line and ask your question.

Operator: Our next question comes from Brian Meredith with UBS. Please unmute your line and ask your question.

Speaker #8: Yeah. Great.

Brian Meredith: Yeah, great.

Speaker #4: Good morning, Brian.

Keith Demmings: Morning, Brian.

Keith Meier: Hi, Brian.

Speaker #5: Hi, Brian.

Brian Meredith: Good morning. Morning. A couple of them. First, just on the Global Housing, placement rates keep picking up here. I'm assuming that's still a function of the tight Homeowners market. I'm wondering if you could give us a little color on it. It seems like the Homeowners market is starting to at least loosen up in some states, even outside of Florida. Do you expect that placement rate to kind of peak out here and maybe trend downwards here as the market kind of opens up a little bit here?

Speaker #4: Good morning. So a couple of them. First, it's on the global housing, placement rates keep picking up here. And I'm assuming that still will function of the tight homeowners market.

Speaker #4: I'm wondering if you can give us a little color on it. It seems like the homeowners market is starting to at least loosen up in some states, even outside of Florida.

Speaker #4: Do you expect that placement rate to kind of peak out here and maybe trend downwards here, as the market kind of opens up a little bit here?

Speaker #4: Yeah. I mean, we've talked about as we think about the year, we expect to add additional loans to the portfolio. We do think policy counts go up over the balance of the year.

Keith Demmings: Yeah. I mean, we've talked about, you know, as we think about the year, we expect to add additional loans to the portfolio. We do think policy counts go up over the balance of the year. We'll see some fluctuation in placement rate. You know, it's, it hasn't really showed up yet in terms of the shifting away from the hard voluntary market. We're still seeing pretty strong growth in California and Texas. It's probably half the growth sequentially. The other half is other states and Florida's relatively stable. I do feel like, you know, we haven't seen evidence of a major shift yet in terms of that trend line, but it's something we're certainly watching very closely.

Speaker #4: We'll see some fluctuation in placement rate. It hasn't really showed up yet in terms of the shifting away from the hard voluntary market. We're still seeing pretty strong growth in California and Texas, is probably half the growth sequentially.

Speaker #4: The other half is other states and Florida is relatively stable. So I do feel like we haven't seen evidence of a major shift yet in terms of that trend line.

Speaker #4: But it's something we're certainly watching very closely. But we feel good about how we're positioned as we think about the full year within that business and the pipeline of opportunities that we've got, that our teams are working on actively.

Keith Demmings: We feel good about how we're positioned as we think about the full year within that business and the pipeline of opportunities that we've got that our teams are working on actively.

Speaker #8: Gotcha. And then my second question is, if you talked a fair amount about how AI is going to enhance customer experience and streamlining some processing functions, etc.

Brian Meredith: Gotcha. My second question is, you've talked a fair amount about how AI is going to enhance, call it customer experience and streamlining some processing functions, et cetera. I'm wondering from a productivity perspective how you're kind of approaching it. Is there any kind of, you know, KPIs or something we look at from a maybe margin enhancement or something that could potentially happen here over the next couple of years from what you're doing with AI? I imagine there's a lot of opportunity in your business for productivity improvements.

Speaker #8: I'm wondering from a productivity perspective how you're kind of approaching it. And is there any kind of KPIs or something we look at from a maybe margin enhancement or something that could potentially happen here over the next couple of years from what you're doing with AI?

Speaker #8: I imagine there's a lot of opportunity in your business for productivity improvements.

Keith Demmings: Yeah, maybe I'll start, and Keith can certainly add in, and we'll think about, you know, over time if there are metrics that can make sense. I'd say there's no doubt we think we can improve the customer experience. Set aside efficiency for a second. There are so many ways to remove friction, to serve customers better, which is great for business, great for our clients. That also comes with efficiency gains as well. I think there's phenomenal opportunities to upskill our talent, to protect our talent, and leverage them in new and different ways. I think we're leaning into more personalized services as we think about matching various product designs for what customer needs look like. We're doing a lot of work around robotics and automation in our facilities. There's a tremendous amount of leverage.

Speaker #4: Yeah. Maybe I'll start and Keith can certainly add in. And we'll think about over time if there are metrics that can make sense. I'd say there's no doubt we think we can improve the customer experience.

Speaker #4: So set aside efficiency for a second. There are so many ways to remove friction, to serve customers better, which is great for business, great for our clients.

Speaker #4: That also comes with efficiency gains as well. I think there's phenomenal opportunities to upskill our talent, to protect our talent. And leverage them in new and different ways.

Speaker #4: I think we're leaning into more personalized services as we think about matching various product designs for what customer needs look like. We're doing a lot of work around robotics and automation in our facilities.

Speaker #4: So there's a tremendous amount of leverage. I think this is going to be a game changer for our company over time. And I think we're incredibly focused on high-value use cases that we can bring to scale.

Keith Demmings: I think this is gonna be a game changer for our company over time, and I think we're incredibly focused on high-value use cases that we can bring to scale. I think focus is key, and I think we're on a really good track to deliver that. What would you add, Keith?

Speaker #4: And I think focus is key. And I think we're on a really good track to deliver that. But what would you add, Keith?

Speaker #5: Yeah. I think, Brian, as you mentioned, what kind of metrics to look at? I'll give you a good example of that. If you look at housing, our general expenses are in the last year up 2%.

Keith Meier: Yeah. I think, you know, Brian, as you mentioned, what kind of metrics to look at. I'll give you a good example of that. If you look at Global Housing, you know, our general expenses are, in the last year, are up 2%, and our revenues, our net earned premiums, fees, and other income is up, double-digit, 11%. You're seeing us, you know, through our technology, getting that expense leverage. I think those are continuing to be areas where our technology is certainly helping us from a efficiency and expense perspective, but it's actually also helping us differentiate against the competition and really be able to deliver the great customer experiences.

Speaker #5: And our revenues are net earned premiums, fees, and other income is up double digit, 11%. And so you're seeing us, through our technology, getting that expense leverage.

Speaker #5: And I think those are the continuing to be areas where our technology is certainly helping us from an efficiency and expense perspective. But it's actually also helping us differentiate against the competition and really be able to deliver the great customer experiences.

Speaker #5: So I think we win on both fronts. And that's why we're really passionate about the technology and having global platforms that allow us to make these things happen.

Keith Meier: I think we win on both fronts, and that's why, you know, we're really passionate about the technology and having global platforms that allow us to, you know, to make these things happen.

Speaker #7: Got it. Thank you.

Brian Meredith: Got it. Thank you.

Speaker #4: You're welcome.

Keith Meier: You're welcome.

Speaker #1: As a reminder, if you would like to ask a question, please click on the raise hand button, which can be found on the black bar at the bottom of your screen.

Operator: As a reminder, if you would like to ask a question, please click on the Raise Hand button, which can be found on the black bar at the bottom of your screen. Our last question comes from Mark Hughes with Truist Securities. Please unmute your line and ask your question.

Speaker #1: Our last question comes from Mark Hughes with Truist Securities. Please unmute your line and ask your question.

Speaker #8: Hey, Mark.

Keith Demmings: Hey, Mark.

Speaker #7: I had to switch screens there. The fee income in lifestyle was quite strong. You talked about good momentum in the reverse logistics program growth.

Mark Hughes: I had to switch screens there. The fee income in Global Lifestyle was quite strong. You talked about good momentum in the reverse logistics program growth. I assume that's a contributor to that. I think the number of devices serviced was up quite strongly. Was that helped by any particular programs in Q1? Recognizing there's some seasonality there seemed to be a lot of strength. I know there's timing on some of these programs that can influence that business. How should we think about the coming quarters there in that dimension?

Speaker #7: I assume that's a contributor to that. I think the number of devices serviced was up quite strongly. Was that helped by any particular programs, recognizing there's some seasonality there?

Speaker #7: But it seemed to be a lot of strength. I know there's timing on some of these programs that can influence that business. How should we think about the coming quarters there in that dimension?

Speaker #5: Yeah. I think you were thinking about it right, Mark, in terms of it being driven by our trade-in, reverse logistics side of the business.

Keith Meier: Yeah. I think you were thinking about it right, Mark, in terms of it being, you know, driven by our trade-in reverse logistics side of the business. Devices serviced have been growing significantly, that's where that fee income has been growing as well. You also highlighted there is some seasonality into that. We had a very strong quarter as it relates to the trade-in side. You know, we're looking forward to continuing the progress we have with our clients in providing these reverse logistics and other trade-in services as we go forward. We feel good overall about the momentum.

Speaker #5: Devices serviced have been growing. Significantly. And that's where that fee income has been growing as well. And then you also highlighted there is some seasonality into that.

Speaker #5: So we had a very strong quarter as it relates to the trade-in side. And then we're looking forward to continuing the progress we have with our clients in providing these reverse logistics and other trade-in services as we go forward.

Speaker #5: So we feel good overall about the momentum.

Speaker #7: Yeah. As I'd say, nothing particularly unusual about the first quarter. No special programs. There's some variability there. But was there anything unusually robust about Q1?

Mark Hughes: Yeah. Is that to say nothing particularly unusual about Q1? No, special programs?

Keith Meier: No.

Mark Hughes: There's some variability there, but was there anything unusually robust about Q1?

Speaker #5: Yeah. I would say it's more of the seasonality and then also I think it was also contributions across multiple programs, Mark. And obviously, some of the newer programs gearing up as well.

Keith Meier: Yeah. I would say it's more of the seasonality. Also, you know, I think it was also contributions across multiple programs, Mark. Obviously some of the newer programs gearing up as well. I think it was well-balanced with some seasonality.

Speaker #5: But I think it was well balanced with some seasonality.

Speaker #7: Okay. Very good. Thank you.

Mark Hughes: Okay. Very good. Thank you.

Speaker #5: You're welcome.

Keith Demmings: You're welcome. Thanks. All right. I think that was the last question. Again, thanks for joining. We look forward to talking to everyone after Q2, and I know we'll see many of you at our mobile event in Nashville next week, so we look forward to that. Thanks again. Have a great day.

Speaker #4: Thanks. All right, I think that was the last question. So again, thanks for joining. We look forward to talking to everyone after the second quarter.

Speaker #4: And I know we'll see many of you at our mobile event in Nashville next week. So we look forward to that. And thanks again.

Speaker #4: Have a great day.

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