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Why You Should Hold onto Assurant (AIZ) Stock Right Now
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Shares of Assurant Inc. (AIZ - Free Report) have outperformed the Zacks categorized Multiline Insurance industry, year to date. Shares gained 2.40%, whereas the industry witnessed a decline of 0.40%. We expect the company’s robust Solutions, business restructuring and disciplined capital management strategy to continue driving shares higher.
The Zacks Rank #3 (Hold) insurer is restructuring its business for long-term growth. To this end, the company is intensifying focus on Specialty Property and Casualty and Lifestyle Protection businesses. The company envisions earnings growth and margin expansion at the Global Lifestyle and Global Preneed segments through a combination of profitable growth and operating efficiencies worldwide. The company is also enhancing its housing market capabilities through strategic buyouts.
Assurant remains focused on growing its fee-based capital-light businesses, which currently represent 52% of revenues. Management estimates growth in double digits over the longer term. The expansion of the fee-based offerings is expected to be an important driver toward achieving the goal of 15% operating ROE by 2020.
Assurant has a strong capital management policy in place by virtue of which management intends to return $1.5 billion to shareholders by the end of 2017.
Assurant anticipates about $100 million in dividend receipts from Assurant Health and Assurant Employee Benefits, pending regulatory approval, in 2017. These dividends, along with capital releases from the sale of employee benefits in 2016, will offer enough flexibility to the company to return capital to shareholders and invest in attractive businesses to further boost its operations.
American Financial Group engages primarily in property and casualty (P&C) insurance with focus on specialized commercial products for businesses. Shares of the company gained 5.99% year to date.
Selective Insurance provides insurance products and services in the U.S. Its shares rallied 8.83% year to date.
Progressive offers personal and commercial P&C insurance, and other specialty P&C insurance and related services, primarily in the U.S. Shares of the company gained 11.32% year to date.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
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Why You Should Hold onto Assurant (AIZ) Stock Right Now
Shares of Assurant Inc. (AIZ - Free Report) have outperformed the Zacks categorized Multiline Insurance industry, year to date. Shares gained 2.40%, whereas the industry witnessed a decline of 0.40%. We expect the company’s robust Solutions, business restructuring and disciplined capital management strategy to continue driving shares higher.
The Zacks Rank #3 (Hold) insurer is restructuring its business for long-term growth. To this end, the company is intensifying focus on Specialty Property and Casualty and Lifestyle Protection businesses. The company envisions earnings growth and margin expansion at the Global Lifestyle and Global Preneed segments through a combination of profitable growth and operating efficiencies worldwide. The company is also enhancing its housing market capabilities through strategic buyouts.
Assurant remains focused on growing its fee-based capital-light businesses, which currently represent 52% of revenues. Management estimates growth in double digits over the longer term. The expansion of the fee-based offerings is expected to be an important driver toward achieving the goal of 15% operating ROE by 2020.
Assurant has a strong capital management policy in place by virtue of which management intends to return $1.5 billion to shareholders by the end of 2017.
Assurant anticipates about $100 million in dividend receipts from Assurant Health and Assurant Employee Benefits, pending regulatory approval, in 2017. These dividends, along with capital releases from the sale of employee benefits in 2016, will offer enough flexibility to the company to return capital to shareholders and invest in attractive businesses to further boost its operations.
Stocks to Consider
Some better-ranked stocks from the insurance industry are American Financial Group, Inc. (AFG - Free Report) , Selective Insurance Group, Inc. (SIGI - Free Report) and The Progressive Corporation (PGR - Free Report) . Each of these stocks flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
American Financial Group engages primarily in property and casualty (P&C) insurance with focus on specialized commercial products for businesses. Shares of the company gained 5.99% year to date.
Selective Insurance provides insurance products and services in the U.S. Its shares rallied 8.83% year to date.
Progressive offers personal and commercial P&C insurance, and other specialty P&C insurance and related services, primarily in the U.S. Shares of the company gained 11.32% year to date.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>