The author has an honours degree in economics and politics with a focus on economic development. With 36 years of experience in executive management he has extensive knowledge of insurance/reinsurance, Global and Asia Pacific markets, climate change and ESG. He invests in his personal capacity.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put opt ...

The author has an honours degree in economics and politics with a focus on economic development. With 36 years of experience in executive management he has extensive knowledge of insurance/reinsurance, Global and Asia Pacific markets, climate change and ESG. He invests in his personal capacity.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put opt ...

Market Overview - Broader equity markets experienced a four-day winning streak as the likelihood of a Federal Reserve rate cut increased to approximately 89%, up from 67% a month ago [1] - The surge in the 10-year Treasury yield raised skepticism, impacting the short-term market rally following the release of key economic data [1] Economic Indicators - The core personal consumption expenditures price index for September showed an annual increase of 2.8%, slightly below the expected 2.9% [2] - U.S. consumer sentiment improved in December, with the Consumer Sentiment Index rising to 53.3 from 51 in November [2] Investment Strategy - Investors are advised to focus on "cash cow" stocks with high returns, emphasizing the importance of attractive efficiency ratios like return on equity (ROE) [2] - High ROE indicates effective reinvestment of cash at a high rate of return, helping to identify financially healthy companies [3][4] Screening Parameters - Stocks were shortlisted based on criteria including cash flow greater than $1 billion and ROE exceeding industry averages [5] - Additional metrics included price/cash flow lower than industry averages and return on assets (ROA) greater than industry averages [6] Stock Picks - Selected stocks with high ROE and strong cash flow include TE Connectivity (TEL), ZTO Express (ZTO), Pilgrim's Pride Corporation (PPC), Assurant, Inc. (AIZ), and Host Hotels & Resorts, Inc. (HST) [7] - These stocks also exhibit solid earnings surprises, strong growth outlooks, and favorable valuation metrics [7] Company Profiles - **TE Connectivity**: A global technology company focused on connectivity and sensor solutions across various industries, with a long-term earnings growth expectation of 12.3% and a trailing four-quarter earnings surprise of 6.5% [8][9] - **ZTO Express**: A leading express delivery service in China with a long-term earnings growth expectation of 1.7% and a Zacks Rank of 1 [10][11] - **Pilgrim's Pride**: Engaged in the production and distribution of chicken products, with a trailing four-quarter earnings surprise of 10.4% and a Zacks Rank of 2 [11][12] - **Assurant**: Provides risk management solutions in housing and lifestyle markets, with a trailing four-quarter earnings surprise of 22.7% and a Zacks Rank of 2 [12][13] - **Host Hotels**: A leading lodging REIT focused on luxury and upper-upscale hotels, with a trailing four-quarter earnings surprise of 11% and a Zacks Rank of 2 [14][15]

It has been about a month since the last earnings report for Assurant (AIZ) . Shares have added about 1.8% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Assurant due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Assurant, Inc. before we dive into how investors and analysts have reacted as of la ...

Core Insights - Assurant, Inc. is a global provider of risk management solutions with a market cap of $11.4 billion, operating across the Americas, Indo-Pacific, and Europe [1] Performance Overview - Assurant has underperformed the broader market, with AIZ stock gaining 6.4% year-to-date and 71 basis points over the past 52 weeks, compared to the S&P 500 Index's gains of 12.3% in 2025 and 11% over the past year [2] - The company also lagged behind the Financial Select Sector SPDR Fund's 6.9% gains in 2025 and 3% increase over the past 52 weeks [3] Financial Results - Following the release of solid Q3 results, Assurant's stock prices increased by 1.7%. The company reported a year-over-year revenue growth of 8.9% to $3.2 billion, exceeding expectations by 2.7% [4] - Adjusted EPS for the quarter soared 91% year-over-year to $5.73, beating consensus estimates by 35.5% [4] Future Projections - For the full fiscal year 2025, analysts expect Assurant to deliver an adjusted EPS of $19.39, reflecting a 16.5% year-over-year increase. The company has a strong earnings surprise history, surpassing estimates in each of the past four quarters [5] - The consensus rating among nine analysts covering AIZ is a "Moderate Buy," with five "Strong Buys," one "Moderate Buy," and three "Holds" [5] Analyst Ratings and Price Targets - The current analyst configuration is slightly less optimistic than two months ago, with six analysts previously giving "Strong Buy" recommendations. An analyst maintained an "Outperform" rating and raised the price target from $248 to $254 [6] - The mean price target of $253.67 suggests an 11.8% premium to current price levels, while the highest target of $265 indicates a potential upside of 16.8% [6]

Core Viewpoint - Assurant Inc. shares are currently trading at $225.25, reflecting a 0.28% increase, with a 6.46% rise over the past month, but a 0.40% decline over the past year, raising questions about potential undervaluation despite current performance [1]. Group 1: P/E Ratio Analysis - The P/E ratio is a critical metric for investors, comparing the current share price to the company's earnings per share (EPS), indicating market expectations for future performance [5]. - Assurant Inc. has a P/E ratio of 13.69, which is lower than the insurance industry's average P/E ratio of 13.99, suggesting that the stock may be undervalued or could perform worse than its peers [6]. - A low P/E ratio can indicate undervaluation but may also reflect weak growth prospects or financial instability, emphasizing the need for a comprehensive analysis of financial health [9].

Core Insights - Assurant, Inc. (AIZ) has announced a significant increase in its common stock dividend, reflecting its strong financial position and commitment to shareholder returns [1][2] - The quarterly dividend has been raised to 88 cents per share from 80 cents, marking a 10% increase and the 21st consecutive year of dividend growth [2][10] - The new dividend yield based on the stock's closing price of $227.05 is 1.41%, making it appealing for yield-seeking investors [3][10] Financial Strength and Capital Management - Assurant's strategy includes returning excess cash to shareholders through both dividend increases and share repurchases, demonstrating solid capital position and cash generation capabilities [5][10] - As of September 30, 2025, liquidity stood at $613 million, significantly above the targeted minimum of $225 million, with $206.3 million spent on share repurchases in the first nine months of 2025 [6][10] - The company plans to return up to $300 million to shareholders through share repurchases in 2025, indicating strong cash flow generation [7][10] Performance Metrics - Assurant's return on equity was 18.6% over the trailing 12 months, outperforming the industry average of 15.3% [8] - Year-to-date, Assurant shares have gained 6.5%, surpassing the industry growth of 6% [9]

Core Insights - Assurant, Inc. (AIZ) shares closed at $225.52, close to its 52-week high of $230.55, indicating strong investor confidence and potential for further price appreciation [1] - The stock is trading above its 50-day and 200-day simple moving averages, suggesting solid upward momentum [1] Financial Performance - Assurant's earnings grew by 16.6% over the last five years, outperforming the industry average of 9.8% [2] - The company has consistently beaten earnings estimates, with an average surprise of 22.74% over the last four quarters [2] Valuation Metrics - Assurant shares are trading at a forward price-to-earnings multiple of 1.98X, lower than the industry average of 2.14X and the Finance sector's 4.27X [3] - The company has a Value Score of A, indicating attractive valuation compared to peers [3] Growth Projections - The Zacks Consensus Estimate for Assurant's 2025 earnings per share indicates a year-over-year increase of 14.7%, with revenues projected at $12.75 billion, reflecting a 6.6% improvement [9] - For 2026, earnings per share and revenues are expected to increase by 9.3% and 5.1%, respectively, compared to 2025 estimates [9] Analyst Sentiment - Three out of four analysts have raised their estimates for 2025, and four out of five have increased estimates for 2026 in the past 30 days [10] - The Zacks Consensus Estimate for 2025 and 2026 earnings has increased by 7.8% and 2.4%, respectively, over the past month [10] Return on Capital - Assurant's return on equity in the trailing 12 months was 18.6%, exceeding the industry average of 15.3% [13] - The return on invested capital (ROIC) was 12.2%, significantly higher than the industry average of 2.1%, indicating efficient capital utilization [14] Business Segments and Growth Drivers - Fee-based, capital-light units account for 52% of segment revenues and are expected to grow in double digits [7] - Connected Living and Global Lifestyle units are projected to drive EBITDA growth for 2025 [7] - Growth in Global Housing is anticipated from improved claims experience and higher average premiums [17] Capital Management and Shareholder Returns - Assurant plans to return $300 million to shareholders in 2025 through share repurchases and dividend increases [7][20] - The company has a solid capital management policy, with an 11% dividend hike approved in November 2024, marking the 20th consecutive year of increases [20] Overall Outlook - Assurant's focus on capital-light businesses and growth in Connected Living is expected to favor its results [23] - The company has a favorable VGM Score of A, indicating strong value, growth, and momentum compared to peers [24]

Core Points - Assurant, in collaboration with Wounded Warriors Family Support, presented a mobility-modified 2025 Chevrolet Suburban to combat-wounded veteran Josh Lopez as part of the Mobility is Freedom program [2][3][4] - The initiative aims to provide modified vehicles to veterans who require them due to combat-related injuries, with approximately 350 veterans in the U.S. needing such modifications [3][4] - Assurant was recognized by Forbes as one of America's Best Employers for Veterans in 2025, highlighting its commitment to supporting veterans [3][7] Company Involvement - Assurant's President and CEO, Keith Demmings, emphasized the company's dedication to supporting veterans and the community [3] - The vehicle presented to Lopez was modified by the Driver Rehabilitation Center of Excellence and includes full left-foot driving controls, along with an Assurant Vehicle Care service contract for additional repairs [6] - This event marks the fifth mobility-modified vehicle provided by Assurant through its partnership with Wounded Warriors Family Support [3][4] Background on Josh Lopez - Josh Lopez, a Marine sergeant, suffered catastrophic injuries from an IED explosion during his deployment, resulting in the loss of his right leg below the knee [4] - His story is one of resilience, as he was promoted to sergeant during his recovery, reflecting his strength and dedication [4][5] Organizational Information - Assurant, Inc. is a global protection company that partners with leading brands to safeguard connected devices, homes, and automobiles [8] - The company operates in 21 countries and leverages data-driven technology solutions to enhance customer experiences [8] - Wounded Warriors Family Support is a nonprofit organization dedicated to supporting families of combat-wounded veterans, rated a four-star nonprofit by Charity Navigator [9]

Revenue and Income - Total revenues for the three months ended September 30, 2025, increased to $3,231.5 million, up from $2,967.7 million in the same period of 2024, representing a growth of 8.9%[10] - Net earned premiums for the nine months ended September 30, 2025, reached $7,777.2 million, compared to $7,238.3 million in 2024, reflecting an increase of 7.4%[10] - Net income for the three months ended September 30, 2025, was $265.6 million, significantly higher than $133.8 million in the same period of 2024, marking a year-over-year increase of 98.5%[12] - Basic earnings per share for the three months ended September 30, 2025, were $5.22, compared to $2.56 in the same period of 2024, showing a substantial increase of 104.7%[10] - The company’s total comprehensive income for the nine months ended September 30, 2025, was $936.6 million, compared to $696.7 million in 2024, reflecting an increase of 34.4%[12] - Net income for the nine months ended September 30, 2025, was $647.5 million, compared to $558.9 million for the same period in 2024, reflecting an increase of 15.8%[95] Assets and Liabilities - The company's total assets as of September 30, 2025, amounted to $35,782.1 million, an increase from $35,020.6 million at the end of 2024, indicating a growth of 2.2%[8] - Total liabilities increased to $30,023.6 million as of September 30, 2025, compared to $29,913.9 million at December 31, 2024, reflecting a rise of 0.4%[8] - The company reported a total equity of $5,758.5 million as of September 30, 2025, up from $5,106.7 million at the end of 2024, representing an increase of 12.8%[8] - Cash and cash equivalents at the end of the period were $1,712.5 million, a decrease from $1,813.4 million at the end of September 2024[16] - The Company had receivables of $189.0 million and unearned revenue of $140.8 million as of September 30, 2025, compared to $171.3 million and $153.8 million, respectively, as of December 31, 2024[46] Investment and Securities - The company reported a total of $892.2 million in sales of fixed maturity securities available for sale during the nine months ended September 30, 2025[15] - The total fixed maturity securities fair value as of September 30, 2025, was $8.29 billion, down from $7.18 billion as of December 31, 2024, reflecting a decrease of 14.8%[49] - The total fair value of fixed maturity securities was $2,074.4 billion as of September 30, 2025, with unrealized losses of $242.4 million[54] - The company does not intend to sell investments prior to an anticipated recovery in value, indicating a long-term investment strategy[54] - The carrying value of equity investments as of September 30, 2025, was $114.4 million, up from $108.3 million as of December 31, 2024[53] Expenses and Benefits - Policyholder benefits for the three months ended September 30, 2025, were $709.6 million, down from $776.8 million in the same period of 2024, a decrease of 8.6%[10] - Total benefits, losses, and expenses for the nine months ended September 30, 2025, amounted to $8,660.0 million, an increase from $8,095.4 million in the same period of 2024[10] - The expected future benefit payments for long-term care insurance contracts were $772.1 million as of September 30, 2025, down from $804.4 million at the end of 2024[87] - The company reported a net future policy benefits and expenses of $446.9 million as of September 30, 2025, compared to $470.0 million at the end of 2024[86] Segment Performance - The Global Lifestyle segment generated Adjusted EBITDA of $206.8 million for the three months ended September 30, 2025, up from $184.3 million in the same period of 2024, reflecting a growth of 12.1%[38] - The Global Housing segment's Adjusted EBITDA increased significantly to $256.3 million for the three months ended September 30, 2025, compared to $92.4 million in the same period of 2024, marking a growth of 177.0%[38] - Revenues from service contracts for Global Lifestyle reached $419.6 million in Q3 2025, up from $382.6 million in Q3 2024, representing a growth of 9.8%[42] - For the nine months ended September 30, 2025, Global Lifestyle service contract revenues totaled $1.17 billion, compared to $1.04 billion in the same period of 2024, an increase of 12.6%[42] Legal and Regulatory Matters - The Company has established an accrued liability for certain legal and regulatory proceedings, but does not believe these will have a material adverse effect on its financial condition[101] - Management does not believe that pending legal matters are likely to have a material adverse effect on the Company's financial condition[101] Pension and Benefits - The Assurant Pension Plan's funded status was $92.7 million at September 30, 2025, equating to a 119% funded status, compared to $84.1 million and 117% at December 31, 2024[98] - The net periodic benefit cost for Qualified Pension Benefits for the three months ended September 30, 2025, was $(3.4) million, unchanged from the same period in 2024[98] - No cash contributions were made to the Assurant Pension Plan during the nine months ended September 30, 2025, and no additional cash contributions are expected for the remainder of 2025[98]