Asurion Group Inc.

We don't think the loss of the Sprint contract was the start of a trend for Asurion since it was a rather unique event and since its remaining key client relationships are both secure and expanding. For example, Asurion recently expanded its online sales for key client AT&T, having picked up technological and service capabilities as a result of its 2022 acquisition of Enjoy Technology. Asurion also recently extended its contract with key client Verizon and in the process expanded the footprint of its same-day-delivery offerings with the mobile carrier. The Verizon contract extension comes with a concession, however, that will hurt Asurion's margins in 2023, highlighting the risk associated with key contract dependencies. The stable outlook reflects S&P Global

...Asurion Group Inc. maintains a strong market position and international presence in mobile device protection. With revenue of $8.5 billion for the 12 months ended March 31, 2023, the company has about 70% market share in the U.S. handset protection market. Its U.S. business accounts for 76% of revenue; its international presence accounts for the remaining 24%, with most of that revenue coming from Japan. Its mobile device protection services are the company's bread and butter, and we expect those services to remain at the core of its product offerings, though the company is increasingly edging into adjacent services to expand its client reach and penetration. The company has sticky client relationships, but client concentration remains a key risk. Asurion's client concentration increased following the loss of the Sprint contract to Assurant in late 2021. Its top four contracts accounted for over 70% of revenue at year-end 2022. We don't think the loss of the Sprint contract was the start...

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