We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Assurant (AIZ) Boosts Shareholder Value, Ok's Buyback Program
Read MoreHide Full Article
The board of directors of Assurant (AIZ - Free Report) recently authorized a share buyback program to return more value to investors. The latest authorization will allow the company to spend up to $900 million to repurchase its common stock.
This marks the second authorization this year. In January, the board of directors had approved a $600 million share buyback program. In the first quarter of 2021, the company bought back shares for $42 million and another $14 million through Apr 30, 2021. It thus had $731 million remaining under its current share buyback authorization on Apr 30. Alan Colberg, President and CEO stated “our new authorization will provide us with flexibility in returning 75% of the net proceeds from our sale of Global Preneed, which we plan to complete within one year of the transaction’s expected third quarter close.”
Assurant is on track to return $1.35 billion of capital to shareholders by 2021, of which it has already paid back more than 70%. This Zacks Rank #3 (Hold) global provider of risk management solutions in the housing and lifestyle markets believes it is poised to reach its capital return target, supported by strong cash flow generated primarily by its Connected World offerings and specialty P&C businesses.
Assurant has a strong capital management policy in place. It utilizes capital, mainly to fund business growth, finance other investments and return capital to shareholders via share buybacks and dividends. Traditionally, the company has been utilizing 50% of its free cash flow to repurchase shares. A solid capital position supports effective capital deployment.
Concurrently, its board of directors approved a quarterly dividend of 66 cents per share of common stock. The dividend will be paid out on Jun 22 to shareholders of record as of Jun 1. In November 2020, the board of directors had approved a dividend hike of 5%, marking the 16th consecutive dividend increase by the company since its initial public offering in 2004. Its dividend grew at a six-year (2014-2020) CAGR of 16.6%.
Shares of Assurant have rallied 64% in a year, outperforming the industry’s increase of 57.4%. Strong performance of the Global Lifestyle business, growing Service business and solid capital management should continue to drive shares.
Among other insurers that have resorted to returning capital to shareholders via share buyback and dividend increase, the board of directors of RLI Corp. (RLI - Free Report) and Radian Group (RDN - Free Report) hiked dividend by 4.1% and 12%, respectively. Last month, the board of directors of The Travelers Companies (TRV - Free Report) approved a 4% hike in its quarterly dividend.
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
Assurant (AIZ) Boosts Shareholder Value, Ok's Buyback Program
The board of directors of Assurant (AIZ - Free Report) recently authorized a share buyback program to return more value to investors. The latest authorization will allow the company to spend up to $900 million to repurchase its common stock.
This marks the second authorization this year. In January, the board of directors had approved a $600 million share buyback program. In the first quarter of 2021, the company bought back shares for $42 million and another $14 million through Apr 30, 2021. It thus had $731 million remaining under its current share buyback authorization on Apr 30. Alan Colberg, President and CEO stated “our new authorization will provide us with flexibility in returning 75% of the net proceeds from our sale of Global Preneed, which we plan to complete within one year of the transaction’s expected third quarter close.”
Assurant is on track to return $1.35 billion of capital to shareholders by 2021, of which it has already paid back more than 70%. This Zacks Rank #3 (Hold) global provider of risk management solutions in the housing and lifestyle markets believes it is poised to reach its capital return target, supported by strong cash flow generated primarily by its Connected World offerings and specialty P&C businesses.
Assurant has a strong capital management policy in place. It utilizes capital, mainly to fund business growth, finance other investments and return capital to shareholders via share buybacks and dividends. Traditionally, the company has been utilizing 50% of its free cash flow to repurchase shares. A solid capital position supports effective capital deployment.
Concurrently, its board of directors approved a quarterly dividend of 66 cents per share of common stock. The dividend will be paid out on Jun 22 to shareholders of record as of Jun 1. In November 2020, the board of directors had approved a dividend hike of 5%, marking the 16th consecutive dividend increase by the company since its initial public offering in 2004. Its dividend grew at a six-year (2014-2020) CAGR of 16.6%.
Shares of Assurant have rallied 64% in a year, outperforming the industry’s increase of 57.4%. Strong performance of the Global Lifestyle business, growing Service business and solid capital management should continue to drive shares.
Among other insurers that have resorted to returning capital to shareholders via share buyback and dividend increase, the board of directors of RLI Corp. (RLI - Free Report) and Radian Group (RDN - Free Report) hiked dividend by 4.1% and 12%, respectively. Last month, the board of directors of The Travelers Companies (TRV - Free Report) approved a 4% hike in its quarterly dividend.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>