Reasons Why Investors Should Retain Assurant (AIZ) Stock Now

Core Insights - Assurant, Inc. (AIZ) has gained investor favor due to its strong Global Lifestyle business, growth in fee-based capital-light operations, effective capital management, and positive earnings estimates [1] Earnings Estimates - The Zacks Consensus Estimate for Assurant's 2024 earnings per share indicates a year-over-year increase of 4.5%, with revenues projected at $11.68 billion, reflecting a 4.2% improvement [2] - For 2025, earnings per share and revenues are expected to rise by 3.6% and 3.2%, respectively, compared to 2024 estimates [2] - Earnings have improved by 20.2% over the past five years, surpassing the industry average of 9.2% [2] Earnings Surprise History - Assurant has consistently beaten earnings estimates in the last four quarters, with an average surprise of 42.47% [3] Northbound Estimate Revision - The Zacks Consensus Estimate for 2024 earnings has increased by nearly 3.3% in the past 60 days, indicating investor optimism [4] Return on Equity (ROE) - Assurant's ROE stands at 20.1%, an improvement of 760 basis points year-over-year, outperforming the industry average of 14.1% [5] Zacks Rank - The company holds a Zacks Rank 3 (Hold), with AIZ shares gaining 33.6% over the past year compared to the industry's growth of 20.5% [6] Business Tailwinds - Assurant's strategy to expand fee-based capital-light businesses, which currently account for 52% of segment revenues, is expected to drive growth, with management anticipating double-digit growth in this area over the long term [7] Performance Drivers - Improved performance in Homeowners insurance due to higher lender-placed net earned premiums is expected to enhance results in Global Housing [8] - Growth in Connected Living and Global Automotive is anticipated to boost the Global Lifestyle segment [8] - The Connected Living platform aims to double its margins to 8% through innovative products and partnerships [8] - Increasing net investment income from fixed-maturity securities is expected to benefit investment income [8] Capital Management - Assurant has a robust capital management policy, having increased dividends for 19 consecutive years, with $40 million in share repurchases and $37 million in dividends paid in Q1 2024 [9] - The company expects share repurchases between $200 million and $300 million for 2024, maintaining over 100% free cash flow conversion in recent quarters [9] Industry Comparisons - Other multi-line insurance stocks with better rankings include Radian Group Inc. (RDN), Old Republic International Corporation (ORI), and EverQuote, Inc. (EVER), each currently holding a Zacks Rank 2 (Buy) [10] - Radian Group has a strong earnings surprise history with an average of 22.79% and a 24.8% share price increase over the past year [10] - Old Republic International has beaten earnings estimates in three of the last four quarters, with a 25.7% share price increase [11] - EverQuote has shown significant growth with an average earnings surprise of 65.16% and a 197.8% increase in share price over the past year [11]