Assurant(US:AIZ) ZACKSยท2025-08-18 15:16Core 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]