Assurant Raises 2026 Outlook as Q3 Adjusted EBITDA Rises 12%

Assurant Inc. (NYSE: AIZ) increased its 2026 enterprise and segment outlook after third-quarter earnings rose at a double-digit rate, supported by growth in both Global Lifestyle and Global Housing. Adjusted EBITDA excluding reportable catastrophes increased 12% to $484.1 million from $433.5 million a year earlier, while adjusted earnings per diluted share on the same basis rose 12% to $6.46 from $5.76.

GAAP net income for the quarter ended September 30 was $275.2 million, or $5.49 per diluted share, compared with $265.6 million, or $5.17 per share, in the prior-year period. Adjusted earnings excluding reportable catastrophes totaled $323.6 million, up from $295.5 million.

For the first nine months of 2026, adjusted EBITDA excluding catastrophes grew 12% to $1.44 billion, and adjusted EPS excluding catastrophes increased 13% to $19.36. Assurant said the performance positions it for a 10th consecutive year of profitable earnings growth.

Lifestyle growth led by Connected Living

Global Lifestyle adjusted EBITDA increased 15% to $237 million in the third quarter. Connected Living contributed $158 million, a 23% increase, driven by growth across global mobile-device supply-chain and protection programs and higher contributions from financial services.

Global Automotive adjusted EBITDA was roughly unchanged at $79 million. Excluding a $6 million non-recurring benefit in the prior-year quarter, earnings grew 9%, reflecting improved loss experience and continued expansion of global partnerships.

Year to date, Global Lifestyle adjusted EBITDA rose 18% to $718 million. Connected Living earnings increased 23%, while Global Automotive posted 10% growth. Assurant highlighted new and expanded relationships across extended-service contracts, financial services, commercial equipment, and leased and financed vehicles, along with international partnerships in Mexico and the U.K.

Housing earnings rise despite less reserve benefit

Global Housing adjusted EBITDA excluding reportable catastrophes increased 11% to $288 million. Growth would have been 16% excluding an $8 million reduction in favorable prior-period reserve development compared with the year-earlier quarter.

Net earned premiums, fees and other income grew 6%. The segment reported a 31% non-catastrophe loss ratio, or 34% excluding $21 million of favorable prior-period development. Its expense ratio was 39%, while the combined ratio was 71%, or 73% without that reserve development.

For the first nine months, Global Housing adjusted EBITDA excluding catastrophes increased 8% to $836 million. Homeowners revenue grew 9%, supported in part by the onboarding of about 2.6 million loans through a new partnership with a top-10 U.S. mortgage servicer. In renters insurance, the Cover360 offering generated double-digit premium growth and higher penetration in the property-management channel.

Assurant raises 2026 outlook

Assurant now expects full-year adjusted EBITDA excluding reportable catastrophes to increase approximately 10% from $1.73 billion in 2025. Excluding prior-year reserve development, management expects low-to-mid-teens growth. Adjusted EPS excluding catastrophes is projected to grow at a low-double-digit rate, with mid-teens growth excluding reserve development.

The outlook calls for Global Lifestyle adjusted EBITDA to increase in the mid-to-high teens and Global Housing to grow in the mid-single digits. Assurant expects a corporate loss of about $150 million. The forecast does not assume any prior-year reserve development in the fourth quarter.

Management also expects approximately $350 million of share repurchases in 2026, at the top of its initial range, subject to acquisition opportunities, market conditions and other factors. Assurant repurchased $75 million of shares during the third quarter and another $30 million from October 1 through October 31. It also paid $44 million in quarterly common-stock dividends and ended September with $954 million of holding-company liquidity.

The company generated $599 million of cash from its business segments during the first nine months and returned $411 million to shareholders. Planned investment priorities include artificial intelligence and automation, new client partnerships and the Home Warranty business. Assurant said it is deploying AI in customer service, claims processing, sales, underwriting, fraud detection and automation.

The outlook remains exposed to catastrophe and non-catastrophe losses, reserve adequacy, inflation, economic and financial-market conditions, client retention, competition, international operations, technology and cybersecurity issues, and regulatory changes. Results may also differ from current expectations because of the timing and amount of reserve development, which can affect period-to-period comparisons.