ATLANTA--(BUSINESS WIRE)--Assurant, Inc. (NYSE: AIZ), a premier global protection company that safeguards and services connected devices, homes and automobiles in partnership with the world's leading brands, today announced a strategic partnership with Evident, the leading provider of AI-powered rental insurance verification solutions. Together, these companies are introducing the commercial equipment rental industry's first end-to-end risk management solution, combining world-class automation. ...

ATLANTA--(BUSINESS WIRE)--Assurant, Inc. (NYSE: AIZ), a premier global protection company that safeguards and services connected devices, homes, and automobiles in partnership with the world's leading brands, today announced the launch of HOIVerify® Origination, an industry-defining, API-enabled solution that streamlines and automates insurance verification during the mortgage loan origination process. "Assurant's HOIVerify product suite modernizes the complex mortgage loan process,†said Greg. ...

Market Overview - Wall Street has continued its bull run in 2025, with the S&P 500 recording 20 all-time highs year to date, including five in August alone [1] - Historically, September is the worst-performing month for U.S. equities, with an average decline of 0.7% since 1950, and a more pronounced average decline of 2% over the last 10 years [2] Investment Recommendations - It is advisable to invest in low-beta, high-yielding stocks with a favorable Zacks Rank, including Assurant Inc. (AIZ), Hasbro Inc. (HAS), The Mosaic Co. (MOS), Virtu Financial Inc. (VIRT), and Houlihan Lokey Inc. (HLI), all of which have a Zacks Rank 1 (Strong Buy) [3][10] Assurant Inc. (AIZ) - Assurant is focused on both inorganic and organic growth strategies, expecting adjusted EBITDA to increase modestly in 2025, driven by improved performance in Global Housing and growth in Global Lifestyle [13] - The company has an expected revenue growth rate of 5.7% and an earnings growth rate of 5.8% for the current year, with a Zacks Consensus Estimate for earnings improving by 7.6% over the last 30 days [15] Hasbro Inc. (HAS) - Hasbro is concentrating on high-margin segments such as Wizards, Licensing, and Digital, which are expected to support bottom-line growth [16] - The company anticipates that digital gaming and licensing partnerships will contribute about 25% of corporate revenues by 2027, with an expected revenue growth rate of 6.6% and an earnings growth rate of 21.5% for the current year [19] The Mosaic Co. (MOS) - The Mosaic is expected to benefit from higher demand for fertilizers, with strong grower economics and crop commodity prices driving global fertilizer demand [20] - The company has an expected revenue growth rate of 16.4% and an earnings growth rate of 60.1% for the current year, with a Zacks Consensus Estimate for earnings improving by 13.2% over the last 30 days [22] Virtu Financial Inc. (VIRT) - Virtu Financial's diversified business model supports sustainable long-term growth, with ongoing cost-control initiatives improving adjusted net margins [24] - The company has an expected revenue growth rate of 18.9% and an earnings growth rate of 33.8% for the current year, with a Zacks Consensus Estimate for earnings improving by 17.9% over the last 60 days [25] Houlihan Lokey Inc. (HLI) - Houlihan Lokey is a global investment bank specializing in mergers and acquisitions, capital solutions, and financial advisory services [26] - The company has an expected revenue growth rate of 13.1% and an earnings growth rate of 21.9% for the current year, with a Zacks Consensus Estimate for earnings improving by 6.7% over the last 60 days [27]

Market Overview - U.S. equity markets experienced modest gains in August 2025, with the S&P 500 increasing by 2.2%, marking its fourth consecutive month of growth, driven by investor optimism regarding potential interest rate cuts and strong corporate earnings despite ongoing inflation and tariff concerns [1][9] Financial Services Sector Performance - The Financial Services sector saw significant investor optimism, with the KBW Nasdaq Bank Index and S&P Banks Select Industry Index rising by 5.5% and 8.3%, respectively, fueled by AI momentum, digital advertising strength, and expectations of a Fed rate cut [2][6] - Stronger-than-expected earnings reports and positive guidance from major financial institutions contributed to the bullish sentiment, alongside a rebound in capital markets activity [7][9] Key Financial Services Stocks - Assurant, Inc. (AIZ) is focusing on growing fee-based capital-light businesses, which currently account for 52% of its segmental revenues, with management projecting double-digit growth in this area over the long term [8][10] - Synchrony Financial (SYF) is leveraging its strong distribution channels and has expanded its offerings through acquisitions and partnerships, although it anticipates a decline in net revenues for 2025 due to higher Retailer Share Arrangements and lower loan receivables [14][16] - American Express Company (AXP) benefits from its dual role as a credit card issuer and network operator, with a projected revenue increase of 8-10% for 2025, despite exposure to credit risk from macroeconomic challenges [18][21] - Fifth Third Bancorp (FITB) is expanding its non-interest income base through strategic partnerships and acquisitions, with plans to open 50-60 new branches annually in high-growth regions from 2025 to 2028 [23][24] - Citizens Financial Group, Inc. (CFG) is executing a long-term growth strategy focused on wealth management and market expansion, with a new private bank initiative expected to raise $7 billion in deposits by 2024 [27][30]

Core Insights - Assurant, Inc. has extended its partnership with Holman, a major U.S. dealership group, to enhance its Global Automotive division, which specializes in vehicle protection products and services [1][9] - Holman has significantly expanded its operations, recently acquiring Leith Automotive Group, which nearly doubled its retail automotive operations [3][9] - Assurant will support 30 new dealership locations added through Holman's acquisition with F&I products, dealership sales, and training [3][9] Company Overview - Holman, headquartered in Mount Laurel, New Jersey, has evolved from a single Ford dealership in 1924 to one of the largest privately owned dealership groups in the U.S., operating 59 dealerships across nine states [2] - The company has diversified its services to include fleet management, leasing, and commercial vehicle equipment manufacturing, becoming a leading integrated automotive service provider in North America [2] Strategic Initiatives - Assurant collaborates with manufacturers, dealers, and technology companies to broaden its service offerings and reach, which is expected to benefit its Global Automotive business [4] - The partnership with Holman is anticipated to enhance customer satisfaction and accelerate collaboration between the two companies [3][4] Financial Performance - Assurant's Global Automotive division plays a crucial role in the company's financial performance, with positive trends noted in mobile device protection and loss experience [5] - The division's success is attributed to its adaptability to industry trends, strong partnerships, and valuable solutions provided to clients [6] Market Position - Assurant Global Automotive operates in 21 countries and serves over 50 million consumers, establishing itself as a leader in providing protection products and services in the automotive industry [7] - The company's shares have gained 13.5% over the past year, outperforming the industry's growth of 10.8% [8]

Core Viewpoint - Assurant (AIZ) is experiencing solid improvement in earnings estimates, which is likely to positively impact its stock price momentum [1][2] Earnings Estimate Revisions - Analysts are increasingly optimistic about Assurant's earnings prospects, leading to higher estimates that correlate with stock price movements [2] - The current-quarter earnings estimate is $4.05 per share, reflecting a +35.0% change from the previous year [6] - Over the last 30 days, the Zacks Consensus Estimate for Assurant has increased by 7.08%, with four estimates moving higher and no negative revisions [6] - For the full year, Assurant is expected to earn $17.46 per share, representing a +4.9% change from the prior year [7] - There has been a positive trend in estimate revisions for the current year, with four estimates moving up and no negative revisions [7] Zacks Rank - Assurant currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in revising earnings estimates upward [8] - The Zacks Rank system has a proven track record, with Zacks 1 Ranked stocks generating an average annual return of +25% since 2008 [3] Stock Performance - Assurant's stock has increased by 13.6% over the past four weeks due to strong estimate revisions [9] - There may still be further upside potential in the stock, suggesting it could be a good addition to investment portfolios [9]

Core Insights - Assurant, Inc. (AIZ) shares have increased by 12.5% over the past year, outperforming the industry growth of 9.2% [1][6] - The company has a market capitalization of $10.72 billion, with an average trading volume of 0.5 million shares over the last three months [1] Valuation and Trading Metrics - Assurant shares are trading at a forward price-to-earnings multiple of 1.97X, which is lower than the industry average of 2.19X, the Finance sector's 4.03X, and the Zacks S&P 500 Composite's 8.37X [2] - The stock closed at $212.50, near its 52-week high of $230.55, and is trading above its 50-day and 200-day simple moving averages of $194.91 and $203.53, indicating strong upward momentum [3] Growth Projections - The Zacks Consensus Estimate for Assurant's 2025 earnings per share indicates a year-over-year increase of 2.2%, with revenues projected at $12.55 billion, reflecting a 5% improvement [7] - Earnings have grown by 16.6% over the past five years, surpassing the industry average of 9.8%, and the company holds a Growth Score of B [8] Analyst Sentiment - Three out of five analysts have raised their estimates for both 2025 and 2026 in the past 30 days, leading to a 3.9% and 1.6% increase in the Zacks Consensus Estimate for those years, respectively [9] Target Price and Upside Potential - The average price target for AIZ is $237.33 per share, suggesting an 11.4% upside from the last closing price [11] Financial Performance - Assurant's return on equity in the trailing 12 months was 16.4%, exceeding the industry average of 14.6%, indicating efficient use of shareholders' funds [13] - The return on invested capital (ROIC) was 10.7%, significantly higher than the industry average of 1.92% [14] Business Strategy and Growth Areas - Assurant is focusing on expanding its capital-light businesses, which account for 52% of segment revenues, and management expects this segment to grow in double digits over the long term [15] - The Connected Living segment is anticipated to drive growth through innovative offerings and improved relationships with mobile carriers and cable operators [16] - Global Housing is expected to see growth from favorable loss experiences and increased policies in-force, with strong adjusted EBITDA growth projected for 2025 [17] Capital Management and Shareholder Returns - Assurant has a solid capital management policy, with an 11% dividend hike approved in November 2024, marking the 20th consecutive year of increases [20] - The company repurchased shares worth $62 million in the first quarter of 2025, with $287 million remaining under the current repurchase authorization [20][22] Conclusion - Assurant's focus on capital-light businesses, strong return on capital, and favorable growth estimates position the company well for long-term benefits [23][24]

Financial Performance - Total revenues for Q2 2025 reached $3,158.4 million, a 8.0% increase from $2,924.9 million in Q2 2024[10] - Net earned premiums for the first half of 2025 were $5,150.0 million, up 6.8% from $4,821.1 million in the same period of 2024[10] - Net income for Q2 2025 was $235.3 million, representing a 24.7% increase compared to $188.7 million in Q2 2024[11] - Basic earnings per share for Q2 2025 increased to $4.60, up from $3.59 in Q2 2024, reflecting a 28.1% growth[10] - Total revenues for the six months ended June 30, 2025, reached $6,232.4 million, compared to $5,805.0 million for the same period in 2024, indicating an increase of 7.3%[10] - The company reported total comprehensive income of $349.2 million for Q2 2025, significantly higher than $147.2 million in Q2 2024[11] - The company reported net income of $381.9 million for the six months ended June 30, 2025, a decrease of 10.2% compared to $425.1 million in 2024[38] Assets and Liabilities - Total assets as of June 30, 2025, were $35,525.9 million, compared to $35,020.6 million at the end of 2024, indicating a 1.4% increase[9] - Total liabilities increased to $30,027.4 million as of June 30, 2025, from $29,913.9 million at December 31, 2024, a rise of 0.4%[9] - The company’s cash and cash equivalents decreased to $1,486.7 million as of June 30, 2025, down from $1,807.7 million at December 31, 2024[9] - The balance of retained earnings as of June 30, 2025, was $4,570.9 million, an increase from $4,431.1 million at the end of the previous quarter, representing a growth of 3.2%[12] Cash Flow - Net cash provided by operating activities for the six months ended June 30, 2025, was $657.9 million, down from $793.4 million in the same period of 2024, a decrease of 17.1%[14] - The net cash used in investing activities for the six months ended June 30, 2025, was $784.5 million, compared to $521.6 million in 2024, indicating an increase in cash outflow of 50.4%[14] - The net cash used in financing activities for the six months ended June 30, 2025, was $(223.0) million, compared to $(177.0) million in 2024, indicating an increase in cash outflow of 26%[15] Segment Performance - As of June 30, 2025, the Company reported total revenues of $4,829.1 million for the Global Lifestyle segment, an increase from $4,547.2 million in the same period of 2024, representing a growth of 6.2%[36] - The Global Housing segment generated total revenues of $1,422.6 million for the six months ended June 30, 2025, compared to $1,264.2 million in 2024, reflecting a year-over-year increase of 12.5%[36] - The Global Lifestyle segment reported net earned premiums, fees, and other income of $2,559.8 million for the six months ended June 30, 2025, compared to $2,288.8 million in 2024, reflecting an increase of 11.8%[36] - The Global Housing segment's total revenues rose to $1,422.6 million for the six months ended June 30, 2025, compared to $1,264.2 million in 2024, marking a growth of 12.5%[36] Investment and Realized Losses - The company reported net realized losses on investments of $37.7 million for the six months ended June 30, 2025, compared to $28.4 million in 2024, indicating an increase in losses of 32.5%[14] - The company reported net realized losses on investments for Q2 2025 amounted to $21.7 million, compared to losses of $15.8 million in Q2 2024[51] - The fair value of total fixed maturity securities as of June 30, 2025, was $8,071.8 million, down from $7,175.1 million as of December 31, 2024[48] Policyholder Benefits - Policyholder benefits for the first half of 2025 were $1,501.2 million, an increase from $1,319.2 million in the same period of 2024[10] - The company reported policyholder benefits of $721.5 million for Q2 2025, compared to $696.1 million in Q2 2024, marking an increase of 3.7%[10] - The company reported incurred losses and loss adjustment expenses of $1,501.2 million for the six months ended June 30, 2025[76] Future Projections and Changes - The company is currently assessing the impact of the One Big Beautiful Bill Act enacted on July 4, 2025, but does not expect it to have a material impact on its consolidated financial statements[26] - The company expects no additional cash contributions to the Assurant Pension Plan for the remainder of 2025 due to its current funded status[94] Earnings Per Share - Basic earnings per share (EPS) for the three months ended June 30, 2025, was $0.83, up from $0.76 in 2024, reflecting a 9.2% increase[91] - Diluted EPS for the same period was $4.56, compared to $3.58 in 2024, indicating a 27.5% increase[91] Comprehensive Income - The company’s accumulated other comprehensive income balance at June 30, 2025, was $(634.6) million, reflecting a change of $113.9 million from the previous period[87] - The total other comprehensive income for the three months ended June 30, 2025, was $113.9 million, compared to a loss of $41.5 million in 2024, showing a turnaround of $155.4 million[12]

Core Insights - Assurant, Inc. (AIZ) reported a strong second-quarter 2025 net operating income of $5.56 per share, exceeding the Zacks Consensus Estimate by 25.5% and reflecting a year-over-year increase of 36.3% [1][11] - Total revenues rose 6.5% year over year to $3.1 billion, slightly surpassing estimates by 0.7% [2][11] - Adjusted EBITDA, excluding reportable catastrophes, increased 12.7% year over year to $415.8 million, also beating estimates [4][11] Revenue Breakdown - Net earned premiums, fees, and other income increased 5.9% year over year to $2.6 billion, driven by growth across both Global Lifestyle and Global Housing segments [2][5] - Global Housing revenues increased 10.2% year over year to $732 million, primarily due to higher net earned premiums and net investment income [5] - Global Lifestyle revenues rose 7.5% year over year to $2.4 billion, driven by higher net earned premiums, fees, and other income [7] Investment Income and Expenses - Net investment income increased 3.2% year over year to $128.7 million, supported by higher yields and assets in fixed maturity securities [3] - Total benefits, losses, and expenses rose 6.5% year over year to $2.9 billion, mainly due to higher policyholders' benefits and administrative expenses [3] Segment Performance - Adjusted EBITDA for Global Housing, excluding catastrophes, increased 18% year over year to $244.2 million, driven by growth in Homeowners [6] - Adjusted EBITDA for Global Lifestyle, excluding catastrophes, was $201.4 million, a 6% year-over-year increase, attributed to growth in Connected Living [8] - Corporate & Other segment reported an adjusted EBITDA loss of $29.8 million, wider than the previous year's loss [9] Financial Position - As of June 30, 2025, liquidity stood at $518 million, significantly above the targeted minimum level of $225 million [12] - Total assets increased 1.4% to nearly $36 billion, while total shareholders' equity rose 7.7% year over year to $5.5 billion [12] Share Repurchase and Dividends - In Q2, Assurant repurchased shares worth $62 million, with an additional $25 million repurchased from July 1 to August 1, 2025 [13] - Total dividends for the quarter amounted to $43 million [13] Guidance for 2025 - Assurant expects adjusted EBITDA, excluding reportable catastrophes, to grow in the mid-to-high single digits [14] - Adjusted earnings per diluted share, excluding reportable catastrophes, is anticipated to grow by 10% [15] - The company plans to return $250 to $300 million in share repurchases, reflecting a strong capital position [16]

Financial Data and Key Metrics Changes - The company reported a strong second quarter with adjusted EBITDA increasing by 13% and adjusted earnings per share (EPS) growing by 17%, both excluding reportable catastrophes [18] - Year-to-date adjusted EBITDA increased by 14% and adjusted EPS rose by 16%, both excluding catastrophes [5][6] - The full year 2025 adjusted EPS growth expectation has been increased to approach 10%, driven by mid to high single-digit growth in adjusted EBITDA [6][26] Business Line Data and Key Metrics Changes - In Global Lifestyle, adjusted EBITDA growth accelerated, with a 6% increase compared to last year, or 7% on a constant currency basis [20] - Connected Living saw adjusted EBITDA increase by 9% or 11% on a constant currency basis, driven by strong subscriber growth [20] - Global Housing adjusted EBITDA was $244 million, an 18% increase excluding catastrophes, benefiting from favorable non-catastrophe loss experience and increased lender-placed policies [22][13] Market Data and Key Metrics Changes - Net written premiums in Global Automotive increased by 8% year-to-date, supported by rate increases and new business wins [11] - The homeowners business in Global Housing benefited from lower claims frequencies and increased lender-placed policies due to pressure in the voluntary insurance market [22][13] - The company added 2.4 million devices protected in Connected Living, bringing the total to 65 million subscribers [9] Company Strategy and Development Direction - The company is focused on leveraging technology and innovation to drive growth, including investments in AI to enhance customer experience and operational efficiency [24][25] - The diversified business model allows the company to perform consistently across various economic environments, differentiating it from the broader property and casualty industry [7] - The company aims to expand offerings and increase attachment rates with existing partners while entering attractive adjacent sectors through new product offerings [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the ninth consecutive year of profitable growth in 2025, supported by strong performance in Global Housing and continued growth in Global Lifestyle [7][26] - The company is monitoring macroeconomic conditions, including tariffs, inflation, and interest rates, which may impact growth [28] - Management highlighted the importance of maintaining balance and flexibility in capital allocation to support new business growth while returning excess capital to shareholders [29] Other Important Information - The company has completed $150 million in share repurchases so far this year and expects total repurchases for the year to be between $250 million to $300 million [19][29] - The company reported a holding company liquidity position of $518 million at quarter-end, providing flexibility for future growth [19] Q&A Session Summary Question: What is the trend for the overall benefit ratio in Global Lifestyle? - Management noted that the benefit ratio is around 23 to 24% and is expected to trend down as rates continue to earn through in Global Auto, with improvements in vehicle service contract loss experience [33][34] Question: What is driving the decline in investment income from other investments? - Management explained that the investment portfolio continues to perform well, with overall book yields up, but noted some lumpiness due to real estate transactions [35][36] Question: Can you quantify any pull forward in consumer activity regarding the number of devices and protected vehicles? - Management indicated that there was some pull forward in Connected Living, particularly in trade-ins, but the majority of growth was driven by device protection [42][44] Question: What opportunities exist for gaining more leverage in the housing segment? - Management highlighted that the expense ratio is running in the high 30s, with opportunities for leverage coming from growth in the lender-placed portfolio and technology investments [47][49] Question: What is the source of prior year development in Global Housing? - Management identified improvements in Florida due to regulatory changes, lower claim frequencies, and lower-than-expected inflation as key drivers [57] Question: What is the impact of tariffs observed so far? - Management reported limited impact from tariffs in the first half of the year and remains proactive in managing inflation and service efficiency [59] Question: How is the new business pipeline for lifestyle compared to previous years? - Management noted strong momentum in the new business pipeline, with a mix of new client wins and expansions in existing relationships, particularly in Connected Living [63][66]