Assurant(US:AIZ) ZACKSยท2025-06-02 14:41Core Insights - Assurant, Inc. (AIZ) shares have increased by 17.6% over the past year, outperforming the industry growth of 7.5% and the Zacks S&P 500 composite's growth of 11.9%, but lagging behind the Finance sector's return of 18.1% [1][7] - The company has a market capitalization of $10.29 billion and an average trading volume of 0.5 million shares over the last three months [1] - Assurant has consistently surpassed earnings estimates in the last four quarters, with an average beat of 15.99% [1] Valuation and Market Position - Assurant shares are trading at a forward price-to-book value of 1.97X, which is lower than the industry average of 2.48X, the Finance sector's 4.08X, and the Zacks S&P 500 Composite's 7.96X [4] - The Zacks Consensus Estimate for Assurant's 2025 revenues is $12.58 billion, indicating a year-over-year growth of 5.2% [5] Growth Projections - The consensus estimates for 2026 suggest an increase in earnings per share by 18.5% and revenues by 4.3% compared to 2024 estimates [8] - Earnings have grown by 16.6% over the past five years, outperforming the industry average of 10.1% [8] Analyst Sentiment - Four out of five analysts covering Assurant have raised their estimates for 2025 and 2026 in the past 30 days, leading to a 1.1% increase in the 2025 earnings estimate and a 1.5% increase for 2026 [9] Technical Analysis - Assurant shares closed at $202.98, trading above the 50-day simple moving average (SMA) of $197.65, indicating strong upward momentum [10] Financial Efficiency - The return on equity for Assurant in the trailing 12 months was 15.4%, surpassing the industry average of 14.9% [13] - The return on invested capital (ROIC) was 9.9%, significantly higher than the industry average of 2% [14] Strategic Focus - Assurant is concentrating on expanding its capital-light businesses, which account for 52% of segment revenues, and expects this segment to grow in double digits over the long term [15] - The company is enhancing its Connected Living platform, particularly in mobile protection, which is expected to drive growth [16] Segment Performance - Growth in the Global Housing segment is anticipated due to favorable claims experience and increased policies in-force [17] - The Global Lifestyle segment is expected to benefit from growth in mobile device protection and new financial services programs [18] Capital Management - Assurant has a robust capital management policy, with an 11% dividend increase approved in November 2024, marking the 20th consecutive year of dividend hikes [20] - The company repurchased shares worth $62 million in the first quarter of 2025, with a remaining authorization of $287 million [20] Conclusion - The focus on capital-light businesses, growth in Homeowners and Connected Living segments, along with higher returns on capital and favorable growth estimates, positions Assurant for long-term benefits [21]