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What to Expect From Assurant (AIZ) This Earnings Season?

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Assurant, Inc. (AIZ - Free Report) is scheduled to release second-quarter 2021 results on Aug 3, after the closing bell. The company’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 21.71%.

Factors to Note

The company’s second-quarter revenues are likely to reflect the impact of lower fees and other income coupled with reduced net investment income. The Zacks Consensus Estimate for second-quarter revenues stands at $2.4 billion, which indicates decline of 2.7% from the prior-year quarter.

While the consensus mark for fees and other income suggests fall of 21% from the year-ago reported figure, the same for net investment income indicates a decline of 44.5% year over year. A continued lower interest rate environment is likely to have weighed on the company’s net investment income in the second quarter.

The company’s Global Lifestyle segment might have benefited from well-performing Global Automotive and Connected Living in the to-be-reported quarter. Global Automotive is expected to gain on the back of substantial rise in auto production. Continued mobile subscriber growth across Asia Pacific and North America coupled with higher volumes and contributions stemming from the HYLA acquisition are likely to have provided a boost to Connected Living’s performance in the quarter to be reported.

The Zacks Consensus Estimate for Global Lifestyle revenues is pegged at $1.8 billion, which suggests growth of 2.7% from the prior-year reported number.

The Global Housing segment is likely to have benefited on the back of increased premium rates, improved underwriting results, persistent growth in multifamily housing, well-performing lender-placed business and favorable non-cat losses across the company’s specialty products.

The consensus mark for revenues from Global Housing segment stands at $512 million, indicating an improvement of 4.7% from the prior-year quarter.

In the to-be-reported quarter, the company’s bottom line is likely to reflect the impact of increased interest expense coupled with rise in depreciation expense stemming from constant investments to boost information technology capabilities.

The Zacks Consensus Estimate for the company’s second-quarter earnings is pegged at $2.49 per share, which suggests a slump of 9.5% from the year-ago reported figure.

What Our Quantitative Model Unveils

Our proven model predicts an earnings beat for Assurant this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Assurant has an Earnings ESP of +2.01%. This is because the Most Accurate Estimate of $2.54 is pegged higher than the Zacks Consensus Estimate of $2.49. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Assurant, Inc. Price and EPS Surprise

Assurant, Inc. Price and EPS Surprise

Assurant, Inc. price-eps-surprise | Assurant, Inc. Quote

Zacks Rank: Assurant carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Some other stocks worth considering from the multiline insurance space with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:

American International Group, Inc. (AIG - Free Report) has an Earnings ESP of +7.56% and a Zacks Rank #2.

Lemonade, Inc. (LMND - Free Report) has an Earnings ESP of +10.48% and a Zacks Rank #3.

Radian Group Inc. (RDN - Free Report) has an Earnings ESP of +1.66% and a Zacks Rank of 3.