The quarter beat the standing earnings and revenue bar, not just last year’s results. Adjusted EPS was $6.41, above the published consensus of $5.16; total revenue of $3.45 billion also topped the roughly $3.41 billion expectation. The stronger operating measure excluding catastrophe losses reached $6.60 per share, up 19% year over year. (Adjusted earnings reconciliation; Income Statement)
| Metric | Q2 2026 | Q2 2025 | Expectation / comparison |
|---|---|---|---|
| Adjusted EPS | $6.41 | $5.10 | Published consensus: $5.16 (Adjusted earnings per diluted share reconciliation) |
| Adjusted EPS, excluding catastrophes | $6.60 | $5.56 | +19% year over year (Adjusted earnings per diluted share reconciliation) |
| GAAP diluted EPS | $5.95 | $4.56 | +30% year over year (Income Statement) |
| Total revenue | $3.45B | $3.16B | Published consensus: about $3.41B (Income Statement) |
| Adjusted EBITDA, excluding catastrophes | $491.4M | $415.8M | +18% year over year (Adjusted EBITDA reconciliation) |
| 2026 outlook, underlying growth excluding PYD | Approximately 10% | High single digits previously | Raised after Q1 (2026 Outlook; prior outlook comparison) |
The more consequential news is the second outlook increase. Management lifted 2026 adjusted EBITDA and adjusted EPS growth excluding catastrophes from low single digits to mid single digits; after adjusting for reserve-development comparisons, it now expects roughly 10% growth, versus high single digits at the prior update. That makes this more than a one-quarter EPS beat: the filing says first-half performance has improved the full-year earnings run rate. (2026 Outlook)
Both core segments improved, though Housing still carries some quality-of-earnings caveats. Global Lifestyle adjusted EBITDA rose 21% to $244.4 million, driven by connected-device and automotive programs. Global Housing EBITDA excluding catastrophes grew 18% to $287.0 million, aided by favorable non-catastrophe claim experience, lower catastrophe reinsurance costs, and specialty/lender-placed growth. But Housing also benefited from $22.3 million of favorable reserve development, even though that benefit was $12 million lower than a year earlier; lower-than-typical claims frequency is helpful but is less durable than volume-led growth. (Segment results — Global Lifestyle; Segment results — Global Housing)
Capital returns reinforce the upgraded outlook but were already within the existing framework. The company now expects repurchases toward the upper end of its $300 million–$350 million annual range, after buying back $75 million of stock in Q2. That supports per-share growth, but the main incremental signal remains the higher operating outlook rather than a newly announced capital-return program. (Capital deployment; 2026 Outlook)
Read the original 8-K on SEC EDGAR ↗