Assurant Inc. (NYSE:AIZ) Q3 2019 Earnings Conference Call Transcript

Nov 06, 2019 • 08:00 am ET

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Assurant Inc. (NYSE:AIZ) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to Assurant's Third Quarter 2019 Earnings Conference Call and Webcast. [Operator Instructions] And the floor will be open for your questions following management's prepared remarks. [Operator Instructions] It is now my pleasure to turn the floor over to Suzanne Shepherd, Senior Vice President of Investor Relations. You may begin.

Executive
Unidentified Speaker

Thank you Jack and good morning everyone. We look forward to discussing our 3rd quarter 2019 results with you today. Joining me for Assurant conference call are Alan Colberg, our President and Chief Executive Officer and Richard Dziadzio, our Chief Financial Officer. Yesterday after the market closed we issued a news release announcing our results for the 3rd quarter 2019. The release and corresponding financial supplement are available on assurant.com. We'll start today's call with brief remarks from Alan and Richard before Q&A session.

Some of the statements made today may be forward looking. Forward-looking statements are 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 yesterday's earnings release as well as in our SEC reports. During today's call, we will refer to non-GAAP financial measures, which we believe are important in evaluating the company's --. For more details on these measures, the most comparable GAAP measures and a reconciliation of the two please refer to yesterday's news release and financial supplement. I will now turn the call over to Alan.

Executive
Alan B Colberg

Thanks Suzanne, good morning everyone. Our 3rd quarter results were strong, driven by continued momentum in our Global Lifestyle business were earnings increased 30% year-over-year. Growth was mainly driven by mobile which benefited from new and existing clients. We now support 52 million mobile subscribers, an increase of 18% year-over-year. Supporting mobile carriers OEMs and cable and satellite operators as we look to further enhance the customer experience. Last week, we announced our acquisition of CPR, a leading provider of local device repair services. More than 700 franchise stores globally, this investment broadens our fulfillment options providing customers increased choice through same day repair options. Longer term, we believe we can drive incremental revenue growth and operational efficiencies as we cross sell protection programs and other services.

In Global Automotive we remain focused on identifying opportunities to leverage our leadership position, the scale in key global markets. In China, we've recently refocused our operations to capitalize on the sizable auto opportunity including the growing electric vehicle market. This includes a new partnership with a leading Chinese OEM focus solely on electric vehicles. This supports the expansion of our Auto business globally, we will also gaining further insights into the evolving electric vehicle market. Overall, our offerings in new partnership support our Investor Day objectives for Global Lifestyle. We believe that we can grow net operating income in the segment by at least 10% on average from 2019 to 2021 and continue to produce strong cash flows.

Moving to Global Housing, I'd like to start by thanking all of our