Assurant Inc. (NYSE:AIZ) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 08:00 am ET

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Assurant Inc. (NYSE:AIZ) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions] Thank you. Our first question comes from Mark Hughes of Truist Securities. Your line is open.

Executive
Alan B. Colberg

Hey. Good morning, Mark.

Executive
Richard Dziadzio

Good morning, Mark.

Analyst
Mark Hughes

Good morning. Thank you. Could you talk about the T-Mobile announcement? It sounds like you're going to be providing mobile contract services to new customers. Is there -- could you give a little detail? Is this going to include the back book as well or is it just new customers? What's the timing, potential financial impact, all of that?

Executive
Alan B. Colberg

Yeah. No. Mark, thank you for the question. I'd start by saying we're very proud to be T-Mobile's partner for the past decade and assisting them in their journey to be the Un-carrier. As they migrate the stores over, the legacy Sprint stores, which they started last weekend, we will be offering our device protection program to all of the legacy Sprint customers as they come into a store. So that's very positive. It is only go forward, though, which is typical in our markets. So we're starting with zero former Sprint customers. It will take time to grow that book of business, although obviously, it's a very positive long-term thing and we're going to be investing as the program starts ramping over the next month or two, or quarters or so. But, again, very positive and we're really proud of the partnership we've built with T-Mobile.

Analyst
Mark Hughes

And then I assume this is publicly available, but the pace of new Sprint customers, any sense on that you can share?

Executive
Alan B. Colberg

I think it would just be what we normally see, which is over a cycle, call it, somewhere around three to four years is when people come into the store to turn in their handset, get a new handset or purchase a new one. So, we would -- it's similar to the other programs we've launched in the last couple of years, we would expect it to grow and build over the next three-plus years.

Analyst
Mark Hughes

That's great. Can you talk about the mobile contracts overall? You had mentioned in auto business that you are pretty close to where you were pre-COVID, how about on the mobile service contracts, your kind of sales trajectory as you sit here today versus pre-COVID?

Executive
Alan B. Colberg

Yeah. If I step back a little farther and talk about broadly the impacts from COVID on mobile, what we've seen over the last quarter or so is lower trade-in volumes, really as stores were closed and there was disruption in the marketplace, we were fortunate that that was offset by higher margins as we went through the quarter. But we definitely have seen lower trade-in volumes. Although, that's now recovered as we head into June and July, things have really returned more back to pre-COVID.

If you look at our subscriber count, we feel great about where we are. Our installed base is 53 million. We continue to grow in the US and Japan, which are our critical markets. We did see pressure in Latin