Latest news with #AIZ
Yahoo
4 days ago
- Business
- Yahoo
Assurant Q2 Earnings Beat Estimates, Revenues & Premiums Rise Y/Y
Assurant, Inc. AIZ reported second-quarter 2025 net operating income of $5.56 per share, which beat the Zacks Consensus Estimate by 25.5%. The bottom line rose 36.3% year over year. Quarterly results benefited from higher net earned premiums, fees and other income and net investment income, and solid performance in the Global Lifestyle as well as the Global Housing segment. These were partially offset by higher expenses and weakness in the Corporate & Other segment. Total revenues increased 6.5% year over year to $3.1 billion, driven by higher net earned premiums, fees and other income and net investment income. The top line beat the Zacks Consensus Estimate by 0.7%. Assurant, Inc. Price, Consensus and EPS Surprise Assurant, Inc. price-consensus-eps-surprise-chart | Assurant, Inc. Quote Net earned premiums, fees and other income increased 5.9% year over year to $2.6 billion, driven by growth across both segments. Our estimate was $2.5 billion. Net investment income increased 3.2% year over year to $128.7 million, driven by higher yields and assets in fixed maturity securities, short-term investments and cash and cash equivalents. Our estimate was $121.1 million. The Zacks Consensus Estimate was pegged at $130 million. Total benefits, loss and expenses increased 6.5% year over year to $2.9 billion, mainly due to higher policyholders' benefits and underwriting and selling, general and administrative expenses. Our estimate was $2.8 billion. Adjusted EBITDA, excluding reportable catastrophes, increased 12.7% year over year to $415.8 million. Our estimate was $405.4 million. Segmental Performance Revenues at Global Housing increased 10.2% year over year to $732 million, primarily driven by higher net earned premiums and net investment income. The figure was lower than our estimate of $1.1 billion. The Zacks Consensus Estimate was pegged at $737 million. Net earned premiums, fees and other income increased 10% year over year, driven by Homeowners' top-line growth, including growth in policies in force and higher average premiums within lender-placed. Adjusted EBITDA, excluding catastrophes, increased 18% year over year to $244.2 million on continued top-line growth within Homeowners, including higher policies in force from new lender-placed programs and portfolios. The figure was higher than our estimate of $182.8 million. The Zacks Consensus Estimate was pegged at $179 million. Revenues at Global Lifestyle rose 7.5% year over year to $2.4 billion, which beat the Zacks Consensus Estimate as well as our estimate, both of which were pegged at $2.3 billion. The increase was primarily driven by higher net earned premiums, fees and other income. Adjusted EBITDA, excluding catastrophes, of $201.4 million increased 6% year over year, attributable to Connected Living growth, which was mainly driven by higher contributions from global mobile protection and trade-in programs. Global Automotive results increased modestly from improved loss experience. The figure was lower than our estimate of $204.5 million. The Zacks Consensus Estimate was pegged at $202 million. Adjusted EBITDA loss at Corporate & Other was $29.8 million, wider than the year-ago quarter's adjusted EBITDA loss of $27.2 million. The wider loss was attributable to higher employee-related expenses and lower investment income. Financial Position of AIZ Liquidity was $518 million as of June 30, 2025, which was $293 million higher than the company's current targeted minimum level of $225 million. Total assets increased 1.4% to nearly $36 billion as of June 30, 2025, from the end of 2024. Total shareholders' equity came in at $5.5 billion, up 7.7% year over year. Assurant's Share Repurchase and Dividend Update In the second quarter, Assurant repurchased shares for $62 million. From July 1 through Aug. 1, 2025, the company repurchased shares worth $25 million. It now has $225 million remaining under the current repurchase authorization. AIZ's total dividends amounted to $43 million in the reported quarter. Assurant Provides Guidance for 2025 Assurant expects adjusted EBITDA, excluding reportable catastrophes, to have mid-to high single-digit growth. Global Lifestyle adjusted EBITDA is expected to increase from growth in Connected Living and Global Automotive. Global Housing adjusted EBITDA, excluding reportable catastrophes, is expected to increase. Corporate and Other adjusted EBITDA loss is expected to approximate $115 million. Assurant expects adjusted earnings per diluted share, excluding reportable catastrophes, to grow by 10%. The company now expects depreciation expense of approximately $155 million. It continues to expect an effective tax rate of approximately 19% to 21%, interest expense of approximately $107 million and amortization of purchased intangible assets of approximately $65 million. AIZ expects to return $250 to $300 million in share repurchases, at the upper end of our 2025 guidance, reflecting strong capital position and business performance. AIZ Zacks Rank Assurant currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Performance of Other Insurers Prudential Financial, Inc. PRU reported second-quarter 2025 adjusted operating income of $3.58 per share, which beat the Zacks Consensus Estimate by 11.5%. The bottom line rose 5.6% year over year. Total revenues of $13.5 billion beat the Zacks Consensus Estimate by 0.2% but declined 2.4% year over year. The decrease in revenues was due to lower premiums. Total benefits and expenses amounted to $11.8 billion, which declined 3.6% year over year in the second quarter. This decrease was due to lower insurance and annuity benefits. The figure was lower than our estimate of $12 billion. Radian Group Inc. RDN reported second-quarter 2025 adjusted operating income of 1.01 per share, which beat the Zacks Consensus Estimate by 8.6%. The bottom remained flat year over year. Operating revenues remained flat year over year at $312 million and missed the Zacks Consensus Estimate by 1.5%. Net premiums earned were $237.5 million, down 0.1% year over year. Net investment income decreased 1.4% year over year to $72.7 million. MI new insurance written increased 2.9% year over year to $14.3 billion. Primary mortgage insurance in force increased 1.4% year over year to record $276.7 billion. Shares of MGIC Investment Corporation MTG gained 2.3% in the last three trading session as the insurer's bottom line beat expectations. MTG reported second-quarter 2025 operating net income per share of 82 cents, which beat the Zacks Consensus Estimate by 17.1%. Moreover, the bottom line increased 6.5% year over year. MGIC Investment recorded total operating revenues of $306 million, which remained flat year over year on higher net investment income, other revenues and premiums earned. The top line missed the consensus mark by 0.4%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGIC Investment Corporation (MTG) : Free Stock Analysis Report Prudential Financial, Inc. (PRU) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report Radian Group Inc. (RDN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
5 days ago
- Business
- Globe and Mail
Assurant (AIZ) Q2 EPS Jumps 25%
Key Points Adjusted earnings per share rose 25% year over year to $5.10, beating analyst expectations by 13.3% (non-GAAP). Net earned premiums, fees, and other income from the Global Lifestyle and Global Housing segments increased 8% year over year, but fell short of analyst estimates by 2.3% (GAAP revenue). Global Housing delivered a 33% jump in Adjusted EBITDA, driven by lower catastrophe losses and favorable reserve developments. These 10 stocks could mint the next wave of millionaires › Assurant (NYSE:AIZ), a specialty insurance provider focused on housing and lifestyle protection, released its second-quarter 2025 earnings on August 5, 2025. The company reported adjusted earnings per share of $5.10, exceeding analyst expectations of $4.50 (non-GAAP), a 13.3% non-GAAP EPS beat. Revenue increased 8% from the prior year to $3.05 billion, falling short of expected revenue by 2.3% (GAAP). GAAP net income climbed to $235 million, up 25% year over year (GAAP net income). Overall, the quarter reflected strong profitability and segment momentum, despite slightly softer top-line growth than anticipated. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change Adjusted EPS (Non-GAAP) $5.10 $4.50 $4.08 25% Revenue (GAAP) $3,158 million N/A $2,925 million 8.0% GAAP Net Income $235 million $189 million 25% Adjusted EBITDA $386 million $323 million 19% Net Earned Premiums, Fees and Other Income – Global Housing $698 million $634 million 10% Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Business Overview and Strategic Focus Assurant (NYSE:AIZ) operates as a B2B2C (business-to-business-to-consumer) specialty insurance and protection services company, serving segments such as housing, mobile device, and vehicle protection. It delivers products like homeowners insurance and mobile protection plans to consumers, mainly through large partners including telecom providers and car dealers. Its business model thrives on strategic partnerships and recurring, scalable fee-based income streams. In recent years, the company has directed its efforts toward financial resilience, technology integration, and operational efficiency. Key focuses remain on strong risk management, continuous technology investment -- particularly in artificial intelligence -- and deepening relationships with major partners. Success is heavily tied to maintaining its balance sheet strength, innovating product offerings, and efficiently managing catastrophic event risks. Quarter in Review: Segment Performance and Financial Trends Assurant's Q2 2025 reflected a clear outperformance on earnings, with adjusted earnings per share jumping 25% to $5.10, beating analyst predictions by a wide margin, with non-GAAP EPS of 5.10 exceeding the analyst estimate of 4.50. While GAAP revenue grew 8%, it slipped 2.3% below consensus forecasts. Earnings leverage stemmed from both segment profitability and efficient capital allocation, including share repurchases. In the Global Lifestyle segment, which includes products such as mobile device protection plans and auto service contracts, Adjusted EBITDA reached $201.4 million, up 6%. Segment revenues climbed 8% year over year. Growth came from expanded mobile protection partnerships, including a new program with Total Wireless by Verizon, and a new financial services offering. Automotive service contracts experienced modest gains, as earlier pricing actions and claim adjustments led to improved loss experience. The segment benefited from technology-driven efficiencies, ongoing investments in AI-enabled platforms, and new program wins, but growth rates lagged those seen in Housing. Global Housing, which covers homeowners and renters insurance products, saw standout performance for the period. Adjusted EBITDA jumped 33% to $214 million, driven by lower catastrophe losses and favorable reserve developments. Excluding catastrophes, adjusted EBITDA increased 18%. Net earned premiums, fees, and other income from the Global Lifestyle and Global Housing segments increased 8%, mainly driven by growth in policies in-force, higher average premiums within lender-placed, and growth across various specialty products within Homeowners. This segment benefited from $33.9 million in prior period reserve releases, compared to $17.0 million in Q2 2024, and saw inflation guard features and rate management help limit claims cost growth. These tools allow Assurant to frequently adjust pricing by state to offset inflation and higher repair costs, a key advantage for managing housing risk. On the downside, Corporate and Other posted a negative adjusted EBITDA of $29.8 million, a slight year-over-year decline due to higher employee-related costs and reduced investment income. While manageable relative to overall earnings, this continues to be an area flagged for ongoing cost pressure monitoring. Lower catastrophe losses versus Q2 2024 provided earnings stability, with total reportable catastrophe impacts of $29.8 million, more than $15 million below the prior year. The period also saw ongoing technology upgrades, with continued investment in client launches, automation, and digital platforms. The company also acquired a new 250,000-policy renters insurance book through reinsurance, adding further scale in its housing subsegment. Management cited this as a strategic move to consolidate market leadership. Dividend policy remained robust. The quarterly dividend was $0.80 per share, compared to $0.72 per share in Q2 2024, and share repurchases totaled $62 million, with another $25 million completed since. These returns were supported by strong free cash flow and holding company liquidity, which stood at $518 million, well above internal targets. Guidance for capital returns was also raised for the full year, to the high end of $250–$300 million in planned buybacks. Looking Ahead: Guidance and Investor Considerations For FY2025, management increased its non-GAAP outlook. Adjusted earnings per share, excluding catastrophe impacts, are now expected to approach 10% growth in 2025 compared to 2024. Adjusted EBITDA (non-GAAP) is expected to grow at a mid- to high single-digit rate for 2025. Segmental drivers include further gains in both Connected Living (mobile device, home electronics, appliance protection) and Global Automotive (service contracts and vehicle care), along with strong earnings growth in the housing segment, excluding catastrophe losses, as measured by Adjusted EBITDA (non-GAAP). Guidance also includes assumptions for tariffs, inflation, and other macro risks. Leadership is targeting annual capital returns at the high end of the $250–$300 million range for 2025, fueled by continued cash generation and a strong balance sheet. Investors should continue to monitor segment-level revenue pacing -- especially given the recent GAAP revenue miss against expectations -- and the sustainability of reserve releases and favorable loss experience as drivers of profit growth. Other watchpoints include expense trends in Corporate and Other and ongoing macroeconomic or regulatory risks, such as tariffs on parts and housing materials, which can influence claim costs. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,039%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 4, 2025
Yahoo
17-07-2025
- Business
- Yahoo
What to Expect From Assurant's Next Quarterly Earnings Report
Atlanta, Georgia-based Assurant, Inc. (AIZ) provides protection services to connected devices, homes, and automobiles. Valued at $9.4 billion by market cap, the company offers mobile device solutions, extended service contracts, insurance products, vehicle protection, and housing-related coverage, including lender-placed, renters, and homeowners insurance. The leading global provider of lifestyle and housing solutions is expected to announce its fiscal second-quarter earnings for 2025 after the market closes on Tuesday, Aug. 5. Ahead of the event, analysts expect AIZ to report a profit of $4.43 per share on a diluted basis, up 8.6% from $4.08 per share in the same quarter last year. The company has consistently surpassed Wall Street's EPS estimates in its last four quarterly reports. More News from Barchart Dear Google Stock Fans, Mark Your Calendars for July 23 Dear UnitedHealth Stock Fans, Mark Your Calendars for July 29 Peter Thiel Is Betting Big on This Ethereum Treasury Stock. Should You Buy Shares Now? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For the full year, analysts expect AIZ to report EPS of $16.36, down 1.7% from $16.64 in fiscal 2024. However, its EPS is expected to rise 18.7% year-over-year to $19.42 in fiscal 2026. AIZ stock has underperformed the S&P 500 Index's ($SPX) 10.5% gains over the past 52 weeks, with shares up 9.1% during this period. Similarly, it underperformed the Financial Select Sector SPDR Fund's (XLF) 19.6% gains over the same time frame. AIZ's weak performance can be attributed to $157 million in losses resulting from the California wildfires. On May 6, AIZ shares closed marginally higher after the company reported its Q1 results. Its adjusted EPS of $3.39 topped Wall Street expectations of $2.84. The company's revenue totaled $3.1 billion, representing a 6.7% year-over-year increase. Analysts' consensus opinion on AIZ stock is reasonably bullish, with an overall 'Moderate Buy' rating. Out of seven analysts covering the stock, four advise a 'Strong Buy' rating, one suggests a 'Moderate Buy,' and two give a 'Hold.' AIZ's average analyst price target is $233.20, indicating a potential upside of 25.6% from the current levels. On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
11-07-2025
- Business
- Yahoo
AIZ Stock Trading at a Discount to Industry at 1.85X: Time to Hold?
Assurant, Inc. AIZ shares are trading at a discount compared with the Zacks Multi-line Insurance industry. Its forward price-to-earnings multiple of 1.85X is lower than the industry average of 2.56X, the Finance sector's 4.22X and the Zacks S&P 500 Composite's 8.42X. The insurer has a Value Score of insurer has a market capitalization of $9.63 billion. The average volume of shares traded in the last three months was 0.5 million. Shares of Enact Holdings, Inc. ACT, MGIC Investment Corporation MTG and Radian Group Inc. RDN are also trading at a discount to the industry average. Image Source: Zacks Investment Research Shares of Assurant have gained 14% in the past year, outperforming its industry and the Zacks S&P 500 composite's growth of 6.4% and 11.8%, respectively. It, however, underperformed the Finance sector's return of 18.2%. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Assurant's 2025 revenues is pegged at $12.59 billion, implying a year-over-year improvement of 5.2%. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 18.7% and 4.4%, respectively, from the corresponding 2024 estimates. Earnings have grown 16.6% in the past five years, better than the industry average of 10.2%. Two of the five analysts covering the stock have lowered estimates for 2025, while two analysts have raised the same for 2026 over the past 60 days. Thus, the Zacks Consensus Estimate for 2025 earnings has moved down 0.6% in the past 60 days, while the same for 2026 has moved up 0.9% in the same time frame. Return on equity in the trailing 12 months was 15.4%, better than the industry average of 14.8%. This highlights the company's efficiency in utilizing shareholders' funds. Also, the return on invested capital (ROIC) has been increasing over the last few quarters as the company raised its capital investment over the same time frame, reflecting AIZ's efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 9.9%, better than the industry average of 2%. Assurant's focus on growing fee-based capital-light businesses, which account for 52% of segmental revenues, bodes well for growth. Management estimates that the contribution from the same will continue to grow in double digits over the long term. Within Connected Living, AIZ continues to support long-term growth through the development of innovative offerings for partners. U.S. Connected Living is poised for solid growth, particularly within the mobile protection business, riding on innovative offerings, customer experience expertise and improved relationships with mobile carriers and cable operators. Homeowners' top-line growth, more favorable loss experience from prior-period development on claims, growth in policies in-force and higher average premiums within lender-placed, as well as growth across various specialty products, should drive better results at Global Housing. For 2025, AIZ expects Global Housing adjusted EBITDA, excluding reportable catastrophes, to Lifestyle growth is expected to be driven by Connected Living from growth in global mobile device protection and a new financial services program, inorganic and organic growth strategies. For 2025, Assurant expects adjusted EBITDA in this segment to increase from growth in Connected Living and Global Automotive. The insurer remains focused on ramping up the Connected Living platform, deploying innovative products and services, and adding new partnerships. These initiatives are expected to double the margins of Connected Living to 8% over the long term. Assurant has a solid capital management policy. It expects to deploy capital to fund investments, mergers and acquisitions. In November 2024, the board approved a dividend hike of 11%, which is the 20th consecutive year of increase. In the first quarter of 2025, Assurant repurchased shares for $62 million. As of now, $287 million remains under the current repurchase authorization. From a share repurchase perspective, Assurant's expected range for 2025 is between $200 million and $300 million, subject to M&A as well as market and other conditions. For the remainder of 2025, AIZ continues to expect share repurchases will remain more balanced due to the ability of its businesses to generate significant cash flow. The ultimate level of repurchases will depend on M&A opportunities and other market conditions. Focus on capital-light businesses, Homeowners growth, and Connected Living growth within the mobile protection business should favor Assurant's results. Higher return on capital, as well as favorable growth estimates and attractive valuations, should continue to benefit the insurer over the long term. Assurant also has an impressive dividend history, reflecting capital strength, that are expected to be attractive to generate long-term value for shareholders. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGIC Investment Corporation (MTG) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report Radian Group Inc. (RDN) : Free Stock Analysis Report Enact Holdings, Inc. (ACT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
27-06-2025
- Business
- Yahoo
How Is Assurant's Stock Performance Compared to Other Insurance Stocks?
Atlanta, Georgia-based Assurant, Inc. (AIZ) provides protection services to connected devices, homes, and automobiles in North America and internationally. With a market cap of $10.1 billion, the company operates in two segments, Global Lifestyle and Global Housing. Companies worth $10 billion or more are generally described as 'large-cap stocks,' and AIZ fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the property and casualty insurance industry. AIZ benefits from its commitment to investing in new client programs and capabilities, suggesting a strategic approach to fostering future growth. Tesla's Robotaxis Reportedly Sped and Veered Into the Wrong Lanes. Does This Crush the Bull Case for TSLA Stock? Dear Micron Stock Fans, Mark Your Calendars for June 25 Warren Buffett Warns 'Thumbsucking' is 'the Cardinal Sin' in Business Because It's 'Delaying the Correction of Mistakes' Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Despite its strengths, the stock has plunged 15.6% from its 52-week high of $230.55 touched on Nov. 25, 2024. Over the past three months, AIZ stock has declined 7.7%, underperforming the SPDR S&P Insurance ETF's (KIE) 3.9% decline during the same time frame. AIZ stock has declined 8.7% on a YTD basis, underperforming KIE's 2.9% rise in 2025. However, AIZ has surged 16.8% over the past 52 weeks, outperforming XHE's 15.9% rise. To confirm its recent bearish trend, AIZ has been trading below its 200-day moving average since early June and under its 50-day moving average since the last trading session. On May 6, Assurant announced its Q1 earnings, and its shares surged marginally. The company delivered solid revenue growth of 7% year-over-year to $3.07 billion, mainly driven by strong performance in both its Global Lifestyle and Global Housing segments. Moreover, its adjusted EPS for the quarter came in at $3.39, surpassing the consensus estimates by 19.4%. Its peer, Cincinnati Financial Corporation (CINF), has grown marginally in 2025 and has surged 24.1% over the past year, outperforming the stock. Among the seven analysts covering the AIZ stock, the consensus rating is a 'Moderate Buy.' Its mean price target of $233 suggests a 19.7% upside potential from current price levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
