Assurant(US:AIZ) ZACKS·2026-01-02 18:01Core Insights - Assurant, Inc. (AIZ) shares closed at $240.85, close to its 52-week high, 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 10.2% [2] - The company has consistently beaten earnings estimates in the last four quarters, with an average beat of 22.74% [2] Valuation Metrics - Assurant shares are trading at a forward price-to-book value of 2.11X, lower than the industry average of 2.71X, indicating an attractive valuation [3] - The company has a Value Score of A, suggesting strong investment potential [3] Market Performance - Assurant's shares have increased by 24.5% over the last six months, significantly outperforming the industry growth of 3.6% [8] - The average target price for AIZ is $255.67, indicating a potential upside of 5.5% from the last closing price [12] Growth Projections - The Zacks Consensus Estimate for Assurant's 2025 earnings per share (EPS) indicates a year-over-year increase of 17%, with revenues projected at $12.80 billion, reflecting a 7% improvement [10] - For 2026, EPS and revenues are expected to increase by 8.3% and 5.5%, respectively, compared to 2025 estimates [10] Analyst Sentiment - Two out of five analysts have raised their estimates for both 2025 and 2026 over the past 30 days, reflecting positive sentiment [11] Business Strategy - Assurant's fee-based, capital-light units account for 52% of segment revenues and are expected to grow in double digits [7] - The Connected Living and Global Lifestyle units are anticipated to drive EBITDA growth for 2025 [7] Capital Management - Assurant plans to return $300 million to shareholders in 2025 through share repurchases and dividend increases [7][23] - The company has a solid capital management policy, with an 11% dividend hike approved in November 2024, marking the 20th consecutive year of increases [22] Return on Capital - Assurant's return on equity in the trailing 12 months was 18.6%, surpassing the industry average of 15% [15] - The return on invested capital (ROIC) was 12.2%, significantly higher than the industry average of 2% [16] Long-term Growth Drivers - The company is focused on enhancing its Connected Living platform and developing innovative products, which are expected to double margins over the long term [21] - Growth in Global Housing is expected from favorable loss experiences and increased policies in-force [19] - Global Lifestyle growth is projected to be driven by mobile device protection and new financial services programs [20]