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Assurant (AIZ) Draws Investors with Steady Growth Prospects
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Shares of Assurant, Inc. (AIZ - Free Report) gained 7.86% year to date, outperforming the Zacks categorized Multi line Insurance industry’s increase of 3.04%. Also, the company witnessed the 2017 estimates moving north by nearly 3.8% over the last 60 days. We expect the stock to retain its momentum on the back of a number of positives.
The Multi line insurer is restructuring its business for long-term growth. To this end, it is intensifying focus on Specialty Property and Casualty plus 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.
In addition, the company is enhancing its housing market capabilities via strategic buyouts. Interestingly, one such buyout of American Title added $10 million to revenues in the first quarter of 2017, which the company anticipates to be moderately accretive to earnings this year.
The Multi line insurer also remains committed toward expansion of its product and service portfolio plus addition of client partnerships to lead to market share growth. Further, the company is realigning its operating model to better support profitable growth.
Assurant steadfastly eyes growing its fee-based capital-light businesses, which currently represent 52% of revenues. Management estimates long-term growth in double digits. This apart, expansion of the fee-based offerings is expected to be an important driver toward achieving a goal of 15% operating ROE by 2020.
The company 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.
The company foresees dividend receipts worth $100 million from Assurant Health and Assurant Employee Benefits in 2017. Along with capital releases from sale of employee benefits in 2016, these dividends would yield enough flexibility to the company. For example, return capital to shareholders and invest in attractive businesses to boost its operations ahead.
Investors interested in other stocks from the insurance industry might consider Cigna Corporation (CI - Free Report) , Old Republic International Corporation (ORI - Free Report) and Fidelity National Financial, Inc. (FNF - Free Report) , each carrying a Zacks Rank #2.
Cigna Corporation provides insurance and related products and services in the United States and internationally. The company delivered positive surprises in three of the last four quarters with an average beat of 1.35%.
Old Republic International Corporation engages in insurance underwriting and related services business primarily in the United States and Canada. The company delivered positive surprises in two of last four quarters with average beat of 11.37%.
Fidelity National provides title insurance and technology and transaction services to real estate and mortgage industries in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 8.47%.
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Assurant (AIZ) Draws Investors with Steady Growth Prospects
Shares of Assurant, Inc. (AIZ - Free Report) gained 7.86% year to date, outperforming the Zacks categorized Multi line Insurance industry’s increase of 3.04%. Also, the company witnessed the 2017 estimates moving north by nearly 3.8% over the last 60 days. We expect the stock to retain its momentum on the back of a number of positives.
The Multi line insurer is restructuring its business for long-term growth. To this end, it is intensifying focus on Specialty Property and Casualty plus 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.
In addition, the company is enhancing its housing market capabilities via strategic buyouts. Interestingly, one such buyout of American Title added $10 million to revenues in the first quarter of 2017, which the company anticipates to be moderately accretive to earnings this year.
The Multi line insurer also remains committed toward expansion of its product and service portfolio plus addition of client partnerships to lead to market share growth. Further, the company is realigning its operating model to better support profitable growth.
Assurant steadfastly eyes growing its fee-based capital-light businesses, which currently represent 52% of revenues. Management estimates long-term growth in double digits. This apart, expansion of the fee-based offerings is expected to be an important driver toward achieving a goal of 15% operating ROE by 2020.
The company 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.
The company foresees dividend receipts worth $100 million from Assurant Health and Assurant Employee Benefits in 2017. Along with capital releases from sale of employee benefits in 2016, these dividends would yield enough flexibility to the company. For example, return capital to shareholders and invest in attractive businesses to boost its operations ahead.
Zacks Rank
Assurant currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Stocks That Warrant a Look
Investors interested in other stocks from the insurance industry might consider Cigna Corporation (CI - Free Report) , Old Republic International Corporation (ORI - Free Report) and Fidelity National Financial, Inc. (FNF - Free Report) , each carrying a Zacks Rank #2.
Cigna Corporation provides insurance and related products and services in the United States and internationally. The company delivered positive surprises in three of the last four quarters with an average beat of 1.35%.
Old Republic International Corporation engages in insurance underwriting and related services business primarily in the United States and Canada. The company delivered positive surprises in two of last four quarters with average beat of 11.37%.
Fidelity National provides title insurance and technology and transaction services to real estate and mortgage industries in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 8.47%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>