Assurant Financial Model
Insurance Company Financials Example (Free Excel Download)
Assurant, Inc. is a global provider of risk management solutions, protecting consumer purchases such as mobile devices, vehicles, and homes.
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About this model
This model projects Assurant's consolidated financial statements and segment-level profitability to determine equity valuation and assess holding company liquidity for capital return decisions.
Assurant, Inc. is a global provider of risk management solutions, protecting consumer purchases such as mobile devices, vehicles, and homes. The company operates primarily through B2B2C partnerships with leading brands, telecommunications providers, and financial institutions to embed insurance and protection products into consumer transactions.
Business segments include:
- Global Lifestyle (approx. 77% of revenue): Provides mobile device protection, extended service contracts, and vehicle protection services.
- Global Housing (approx. 23% of revenue): Provides lender-placed homeowners insurance, renters insurance, and manufactured housing coverage.
- Corporate and Other: Includes holding company expenses, interest expense, and non-core operations.
The company operates predominantly in North America but has a growing international presence in Europe and Latin America. Assurant employs a capital-light, fee-oriented business model in its Connected Living business, while its Global Housing segment is more traditional and asset-heavy, requiring significant catastrophe reinsurance. The company holds a dominant market share in lender-placed insurance and mobile device protection. Recent major events include the 2021 divestiture of its Global Preneed business to focus entirely on lifestyle and housing, and a 2024 restructuring programme to optimise operational efficiencies.
The downloadable Assurant financial model includes SEC-sourced historical financials, forecast assumptions, core operating schedules, and valuation outputs in an Excel workbook built for review and scenario analysis.
A turnkey financial model
Live formulas, no hardcoded values
Outputs are driven by live formulas, so the workbook updates from its assumptions instead of relying on hardcoded results.
All assumptions in one tab
Inputs are clearly marked in the Assumptions tab and separated from calculations, making it clear what to change and what to leave intact.
Statements always balancing
For integrated-statement models, the balance sheet, cash flow, and supporting schedules tie through properly.
Distinct schedules for clarity
Debt, working capital, taxes, and cash flow can get messy quickly. We group calculations in clear schedules, not across disconnected tabs.
No hidden macros or external links
There are no unexplained external workbook links or macros to undermine auditability or portability.
Changes flow through the model
Update a key driver and see the impact carry through the forecast, financing, and return outputs. We never use hardcoded numbers in formulas.
Historicals & AssumptionsAssurant financial modelCompany, Historicals & Assumptions used
Source: SEC EDGAR · values in USD
| Line item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Revenue | $10.19B | $10.19B | $11.13B | $11.88B | $12.81B |
| Total benefits, losses and expenses | $9.40B | $9.84B | $10.32B | $10.95B | $11.73B |
| Underwriting, selling, general and administrative expenses | $7.08B | $7.37B | $7.70B | $8.08B | $8.69B |
| Net income | $1.36B | $276.6M | $642.5M | $760.2M | $872.7M |
Forecast assumptions
Defaults used in the downloadable model. Forecast horizon: FY2026–FY2030.
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How to build a detailed financial model for Assurant
A complete walkthrough of every driver, margin, working-capital input, and capital-allocation assumption used in the downloadable model.
Revenue Deep Dive
Global Lifestyle
- Segment name: Global Lifestyle (comprising Connected Living and Global Automotive).
- Revenue driver formula: (Covered Devices/Vehicles x Average Premium per Unit) + Trade-in and Repair Fee Income.
- Historical growth rate: 5% to 8% CAGR.
- Key growth levers and headwinds: Growth is driven by 5G device upgrade cycles, expanding global mobile programmes, and higher attach rates for vehicle service contracts. Headwinds include lengthening consumer device upgrade cycles and foreign exchange volatility.
- Pricing dynamics: Highly contractual with major telecom and retail partners; pricing is adjusted based on loss experience and repair costs.
- Revenue recognition notes: Premiums are recognised pro-rata over the contract term. Fee income from device trade-ins is recognised upon the transfer of control of the device.
- Seasonality: Q4 is typically the strongest quarter due to holiday retail sales and new smartphone releases driving device protection and trade-in volumes.
Global Housing
- Segment name: Global Housing.
- Revenue driver formula: (Tracked Mortgage Loans x Placement Rate x Average Insured Value x Premium Rate) + Renters Policies in Force x Average Premium.
- Historical growth rate: 8% to 13% CAGR.
- Key growth levers and headwinds: Driven by inflation in home replacement costs, mortgage delinquency rates (which drive lender-placed insurance volumes), and growth in the multi-family housing market. Headwinds include high catastrophe reinsurance costs.
- Pricing dynamics: Regulated pricing for lender-placed insurance, requiring state department of insurance approvals. Rates include embedded inflation guards.
- Revenue recognition notes: Premiums are earned pro-rata over the policy period (typically one year).
- Seasonality: Revenue is relatively stable, but profitability is highly seasonal due to the North American hurricane season impacting Q3 and Q4 loss ratios.
Cost Structure
Variable Costs / COGS (Policyholder Benefits)
- Line-by-line breakdown: Policyholder benefits and claims, which include actual repair/replacement costs for devices, vehicle repair costs, and property damage claims.
- Gross margin range: In insurance, this is viewed via the loss ratio (Policyholder Benefits / Net Earned Premiums), which typically ranges from 40% to 45% for the consolidated entity.
- Key input costs and commodity exposures: Cost of mobile device parts, automotive repair labour, and building materials for property claims.
- How COGS scales with revenue: Scales linearly with earned premiums, subject to volatility from weather-related catastrophes in the Housing segment.
Operating Expenses
- Selling, Underwriting, General and Administrative (SG&A): Represents the largest operating expense outside of claims. Includes commissions paid to partners, underwriting costs, and administrative headcount. Typically runs at 45% to 50% of revenue.
- Depreciation & Amortisation: Approximately 1% to 2% of revenue, heavily weighted towards amortisation of capitalised software for tracking platforms.
- Restructuring / one-time charges: Frequent in recent years, including a major operational efficiency programme in 2024 and 2025.
Margin Profile
- Adjusted EBITDA margin: Consolidated Adjusted EBITDA margin ranges from 11% to 13%.
- Margin trend: Expanding slightly due to scale in Connected Living and rate increases in Global Housing, offset by higher reinsurance costs.
- Segment-level margins: Global Lifestyle Adjusted EBITDA margin is typically 8% to 9%. Global Housing Adjusted EBITDA margin is highly volatile but averages 25% to 30% in non-catastrophe years.
Balance Sheet Structure
- Total assets: Approximately $36.3 billion.
- Key asset categories: Investments (fixed maturities and equities) representing the float, Reinsurance recoverables, and Deferred Acquisition Costs (DAC).
- Goodwill & intangibles: Significant portion of equity due to historical acquisitions (e.g., The Warranty Group, HYLA Mobile).
- Working capital profile:
- Premiums and fees receivable: Typical DSO of 45 to 60 days.
- Unearned premiums: Massive liability representing cash collected before coverage is provided.
- Net working capital: Highly negative, as the company collects premiums upfront and pays claims later, providing a structural funding advantage.
- PP&E: Minimal physical real estate; primarily consists of IT hardware and capitalised software for proprietary insurance tracking systems.
- Right-of-use assets: Material but not a primary driver of capital needs.
Capital Expenditure & Investment
- Capex as % of revenue: Typically 1% to 2%.
- Maintenance capex vs. growth capex: Heavily skewed towards growth capex, specifically capitalised software development for the Feature Exchange platform and Cover360.
- Major capex programmes underway: Investments in AI-enabled technology platforms and robotics for the mobile device repair and trade-in centres.
- M&A pattern: Bolt-on acquirer focusing on technology capabilities (e.g., device lifecycle management) and expanding geographic footprint.
Debt & Capital Structure
- Total debt: Approximately $2.2 billion.
- Debt/EBITDA ratio: Target leverage is typically around 1.5x to 2.0x Adjusted EBITDA.
- Credit rating: Investment grade (typically Baa2/BBB).
- Key debt instruments: Senior notes (e.g., 5.55% notes due 2036) and a revolving credit facility.
- Maturity profile: Well-laddered with recent refinancing activity pushing major maturities into the 2030s.
- Interest rate profile: Predominantly fixed-rate senior notes.
- Share repurchase programme: Highly active. Repurchased $300 million in 2025 (1.4 million shares).
- Dividend policy: Consistent dividend grower. Annualised dividend of $3.52 per share ($0.88 quarterly) in 2025, representing a payout ratio of approximately 20% of adjusted earnings.
Cash Flow Characteristics
- Operating cash flow conversion: Very strong, typically exceeding 1.0x Net Income due to growth in unearned premiums. Generated $1.83 billion in OCF in 2025.
- Major non-cash items: Depreciation, amortisation of DAC, and stock-based compensation.
- Working capital cash flow impact: Growth in policies in-force generates positive cash flow due to upfront premium collection.
- Holding Company Liquidity: Critical metric. Operating subsidiaries must pay dividends to the holding company to fund buybacks and dividends. Holding company liquidity was $887 million at year-end 2025, well above the $225 million minimum target.
Sheet Structure
- Assumptions: Hardcoded inputs for macroeconomic drivers, segment growth, loss ratios, and capital return targets.
- Scenarios: Scenario manager for Base, Bull, and Bear cases (specifically toggling catastrophe loss assumptions).
- Global_Lifestyle: Premium build, fee income, policyholder benefits, and SG&A to calculate segment Adjusted EBITDA.
- Global_Housing: Tracked loans, placement rates, premium build, catastrophe losses, and reinsurance costs to calculate segment Adjusted EBITDA.
- Corporate_Other: Holding company expenses, interest expense, and unallocated corporate costs.
- Consolidated_IS: Aggregation of segment revenues and expenses, bridging Adjusted EBITDA to GAAP Net Income.
- Investments_Reserves: Schedule of the investment portfolio, yield calculations, DAC roll-forward, and unearned premium reserve roll-forward.
- Balance_Sheet: Standard GAAP balance sheet mirroring the 10-K presentation.
- Cash_Flow: Indirect cash flow statement bridging Net Income to OCF, ICF, and FCF.
- Holding_Co_Liquidity: Specific schedule tracking dividends from operating companies to the holding company, debt service, and capital returns.
- Debt_Schedule: Tranche-by-tranche debt roll-forward and interest expense calculation.
- Valuation: Sum-of-the-parts DCF and P/E multiple valuation based on Adjusted Earnings per Share.
Key Financial Relationships
- "Global Lifestyle Net Earned Premiums = Prior Period Unearned Premiums Recognised + Current Period Gross Written Premiums - Ceded Premiums - Ending Unearned Premiums"
- "Global Housing Loss Ratio = (Underlying Policyholder Benefits + Reportable Catastrophe Losses) / Global Housing Net Earned Premiums"
- "Global Housing Combined Ratio = Global Housing Loss Ratio + (Global Housing SG&A / Global Housing Net Earned Premiums)"
- "Consolidated Adjusted EBITDA = Global Lifestyle Adjusted EBITDA + Global Housing Adjusted EBITDA + Corporate and Other Adjusted EBITDA"
- "GAAP Net Income = Consolidated Adjusted EBITDA - Depreciation & Amortisation - Interest Expense - Income Taxes - Restructuring Costs + Net Realised Gains/Losses on Investments"
- "Investment Income = Average Total Investments x Average Portfolio Yield"
- "DAC Amortisation = Beginning DAC Balance x Historical Amortisation Rate (adjusted for policy duration)"
- "Holding Company Cash Inflows = Dividends from Operating Subsidiaries + Debt Issuance + Equity Issuance"
- "Holding Company Cash Outflows = Share Repurchases + Common Dividends + Holding Company Interest Expense + Debt Principal Repayment"
- "Adjusted Earnings per Share = (GAAP Net Income + Amortisation of Purchased Intangibles + Restructuring Costs - Catastrophe Losses) / Diluted Shares Outstanding"
Cross-Sheet Dependencies
- The Global_Lifestyle and Global_Housing sheets feed revenue and EBITDA lines into the Consolidated_IS.
- The Investments_Reserves sheet calculates investment income which feeds the Consolidated_IS, and reserve balances which feed the Balance_Sheet.
- The Consolidated_IS generates Net Income, which is the starting point for the Cash_Flow sheet.
- The Cash_Flow sheet determines the change in cash, feeding the Balance_Sheet and the Holding_Co_Liquidity sheet.
- The Debt_Schedule calculates interest expense, which feeds the Consolidated_IS, creating a potential circularity if debt is used to plug cash shortfalls. To resolve, use beginning-of-period debt balances for interest calculations.
Sign Convention
- Revenues, premiums, and fee income are entered and displayed as positive numbers.
- Expenses (Policyholder benefits, SG&A, Interest, Taxes) are entered as positive numbers and subtracted in subtotal formulas.
- On the Balance Sheet, Assets are positive; Liabilities and Equity are positive.
- On the Cash Flow statement, cash inflows are positive; cash outflows (including capex, share repurchases, and dividends) are negative.
- Dividends from operating companies to the holding company are positive inflows on the Holding_Co_Liquidity sheet.
Things Most Likely to Go Wrong
- "Catastrophe losses are highly volatile and heavily impact the Global Housing segment; the model must separate underlying loss ratio from catastrophe impacts to forecast normalised earnings."
- "Assurant relies heavily on dividends from its regulated operating subsidiaries to fund holding company activities; modelling consolidated cash is insufficient, you must track Holding Company Liquidity."
- "The company excludes reportable catastrophes and restructuring costs from its headline 'Adjusted EBITDA' and 'Adjusted EPS' metrics; failing to reconcile these properly will result in a mismatch with consensus estimates."
- "Deferred acquisition costs (DAC) amortisation schedules can change based on policy retention assumptions, which can artificially inflate or depress reported SG&A in a given quarter."
- "Global Lifestyle revenue includes both insurance premiums and fee income from device trade-ins; these have different margin profiles and must be projected separately."
- "The company frequently uses share repurchases to drive EPS growth; the model must dynamically reduce the share count based on the allocated buyback dollar amount and projected share price."
- "Reinsurance costs have risen significantly; the model must account for higher ceded premiums in the Global Housing segment, which reduces Net Earned Premiums."
- "Foreign currency translation can swing reported revenue in Global Lifestyle; the model should include a constant-currency toggle for historical analysis."
Validation Checks
- "Global Housing combined ratio should average around 89% over a multi-year period; flag if it drops below 80% or exceeds 100% in a non-catastrophe scenario."
- "Holding company liquidity must remain above the stated $225 million minimum target; flag if it breaches this threshold."
- "Consolidated Adjusted EBITDA margin should remain in the 11% to 13% range based on recent historical performance."
- "Total Assets must equal Total Liabilities plus Equity in every projected period."
- "Debt to Adjusted EBITDA should remain below 2.5x to maintain the current investment-grade credit rating."
- "Effective tax rate should be approximately 19% to 21%; flag if outside this band."
- "Dividend payout ratio should remain between 15% and 25% of adjusted earnings based on stated policy."
- "Operating cash flow should consistently exceed GAAP Net Income due to the structural working capital advantage of unearned premiums."
Key Assumptions (Default Values)
| Assumption | Default Value | Unit | Rationale |
|---|---|---|---|
| Global Lifestyle Revenue Growth | 7.0 | % | Based on 2025 actual growth driven by Connected Living |
| Global Housing Revenue Growth | 13.0 | % | Based on 2025 actual growth driven by lender-placed insurance |
| Global Lifestyle Adj. EBITDA Margin | 8.0 | % | Based on 2025 segment EBITDA of $801.3M on $9.94B revenue |
| Global Housing Adj. EBITDA Margin | 29.5 | % | Based on 2025 segment EBITDA of $858.7M on $2.91B revenue |
| Global Housing Combined Ratio | 89.0 | % | 10-year historical average including catastrophes |
| Investment Portfolio Yield | 4.5 | % | Estimated yield on fixed maturity portfolio in current rate environment |
| Effective Tax Rate | 19.7 | % | Based on 2025 provision for income taxes ($214.7M) on EBT ($1.09B) |
| Annual Share Repurchases | 300.0 | $ Millions | Matches 2025 actual capital return execution |
| Annual Dividend per Share | 3.52 | $ | Based on declared quarterly dividend of $0.88 per share |
| Minimum Holding Co. Liquidity | 225.0 | $ Millions | Stated company target minimum |
| Cost of Debt | 5.55 | % | Based on recent 2036 senior notes issuance |
| WACC / Discount Rate | 8.5 | % | Standard cost of capital for a diversified insurance/services business |
| Terminal Growth Rate | 2.0 | % | Long-term macroeconomic growth assumption |
Data Sources & Benchmarks
- Filings: Assurant Investor Relations website (ir.assurant.com) for 10-K, 10-Q, and quarterly financial supplements.
- Key peers for benchmarking: Allstate (ALL) for property/casualty, Asurion (private) for device protection, and American Financial Group (AFG) for specialty P&C.
- Industry data sources: A.M. Best for insurance rating reports and industry combined ratio benchmarks; NAIC statutory filings for operating subsidiary capital levels.
- Consensus estimates: FactSet or Bloomberg for Adjusted EBITDA and Adjusted EPS estimates.
- Proprietary data: Mortgage Bankers Association (MBA) delinquency rates to forecast lender-placed insurance volumes; IDC smartphone shipment data to forecast Connected Living device volumes.
Sources
- Assurant Reports Strong Fourth Quarter and Full Year 2025 Financial Results (Business Wire): https://www.businesswire.com
- Assurant FY 2025 Global Housing Adjusted EBITDA rises 28% to USD 858.70 million (Tiger Brokers): https://www.itiger.com
- Assurant Q4 Earnings & Revenues Beat Estimates on Higher Premiums (TradingView): https://www.tradingview.com
- Assurant Investor Relations Presentations and Financial Supplements: https://ir.assurant.com
Do more with the Assurant model
Frequently asked
What does Assurant do?+
Assurant, Inc. is a global provider of risk management solutions, protecting consumer purchases such as mobile devices, vehicles, and homes. The company operates primarily through B2B2C partnerships with leading brands and financial institutions to embed insurance and protection products into consumer transactions.
How does Assurant generate its revenue?+
Assurant generates revenue mainly through its Global Lifestyle segment, which provides mobile device protection and vehicle protection services, and its Global Housing segment, offering lender-placed and renters insurance. Its business model leverages partnerships with telecommunications providers and financial institutions to integrate its protection products into consumer transactions.
What are the key capital expenditure assumptions in Assurant's financial model?+
Assurant's financial model assumes capital expenditure as a percentage of revenue typically between 1% to 2%. This capex is heavily skewed towards growth, specifically for capitalized software development for platforms like Feature Exchange and Cover360, and investments in AI-enabled technology.
What is the primary purpose of the Assurant financial model?+
The Assurant financial model projects the company's consolidated financial statements and segment-level profitability. Its main purpose is to determine equity valuation and assess holding company liquidity for capital return decisions.
Can I download an Excel financial model for Assurant (AIZ)?+
Yes, an Excel financial model for Assurant (AIZ) is available for download. This model projects the company's financials from FY2026 to FY2030 and includes key assumptions for revenue growth, margins, and capital expenditures.
What is Assurant's working capital profile?+
Assurant exhibits a highly negative net working capital profile because it collects premiums upfront and pays claims later, providing a structural funding advantage. Key balance sheet items include premiums and fees receivable with a typical DSO of 45 to 60 days, and massive unearned premiums as a liability.
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