Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

On Apr 8, 2013, shares of Assurant Inc. (AIZ - Analyst Report) hit a 52-week high of $45.78.

Assurant is well placed to benefit from the gradually improving insurance pricing cycle. The company’s Assurant Solutions segment has been performing well over the past several quarters. The company has also taken several steps to improve business in the international arena. 
 
Over the longer time horizon, the international business is anticipated to continue growing steadily, and the domestic business should rebound as the economy improves and consumer electronics spending recovers, leading to overall revenue growth.  
 
Moreover, at Assurant Health insured membership is expected to increase as consumers look for affordable health care alternatives. 
 
Assurant has a very good capital management policy in place. Traditionally Assurant has been utilizing 50% of its free cash flow for repurchasing shares.
 
Assurant’s Specialty property business is expected to see a decline in placement rates and will likely worsen with the impact of price reductions -- thereby resulting in a plunge in revenues over the next two years.
 
With respect to earnings trend, Assurant delivered positive earnings surprise in all four quarters of 2012 with an average of 46.21%. The Zacks Consensus Estimate for the first quarter is currently pegged at $1.53 per share. Assurant is scheduled to release its first-quarter 2013 earnings results on Apr 24.
 
Valuation for Assurant looks attractive. The shares are trading at a 16.7% discount to the peer group average on price-to-earnings basis and at a 6.1% premium on a price-to-book basis. Nevertheless, return on equity is nearly 63%  higher than the peer group average. Also, the 1-year return from the stock is 16.9%, much above S&P’s return of 11.8%.   
 
Assurant presently carries a Zacks Rank # 2 (Buy). Other insurers like CIGNA Corp. (CI - Analyst Report) , MGIC Investment Corp. (MTG - Analyst Report) and FBL Financial Group Inc. (FFG - Snapshot Report) among others, carry a favorable Zacks Rank # 2 (Buy) and appear impressive.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
GENERAL FINA GFN 8.20 +5.67%
QIHOO 360 TE QIHU 91.57 +4.38%
VIPSHOP HOLD VIPS 140.01 +3.49%
INVEST TECH- ITG 19.16 +3.34%
VERTEX ENERG VTNR 7.38 +3.07%