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Assurant (AIZ) to Report Q3 Earnings: What's in the Cards?

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Assurant, Inc. (AIZ - Free Report) is slated to report third-quarter 2021 results on Nov 2, after the closing bell. The company’s earnings outpaced earnings estimates in three of the trailing four quarters and missed once.

Factors to Note

In the third quarter, the company’s revenues are likely to reflect gains from improved net earned premiums, and fees and other income, partly offset by reduced net investment income. The Zacks Consensus Estimate for third-quarter revenues is pegged at $2.5 billion, which suggests growth of 0.4% from the year-ago quarter.

The consensus mark for net earned premiums and other considerations stands at $2.2 billion, which indicates an improvement of 3.2% from the prior-year reported figure. Meanwhile, the same for fees and other income is pegged at $247 million, suggesting growth of 0.4% from the year-ago quarter.

However, a continued lower interest rate environment is likely to have weighed on the company’s net investment income in the to-be-reported quarter. The Zacks Consensus Estimate for third-quarter net investment income stands at $76 million, which indicates a decline of 43.7% year over year.

Coming to segments, the company’s Global Lifestyle segment is expected to have benefited from the well-performing Global Automotive and Connected Living in the third quarter. Uptick in industry auto sales might have contributed to Global Automotive’s performance in the to-be-reported quarter. Besides, robust trading volumes, benefits derived from the HYLA acquisition, and continued mobile subscriber growth across North America and Asia Pacific are likely to have driven Connected Living's performance.

The Zacks Consensus Estimate for Global Lifestyle's third-quarter revenues stands at $2 billion, which indicates an improvement of 8.7% from the prior-year quarter.

The Global Housing segment is likely to have benefited on the back of increased premium rates and average-insured values that are likely to have resulted in sound performance of lender-placed business. Also, solid growth in Multifamily housing is likely to have contributed to the segmental revenues in the third quarter.

The consensus mark for revenues from Global Housing segment is pegged at $529 million, suggesting growth of 7.7% from the year-ago quarter.

Continued share buybacks might have provided a boost to the company’s bottom line in the to-be-reported quarter. However, escalating costs stemming from investments undertaken to boost technology and operational capabilities are likely to have weighed on margin growth.

The Zacks Consensus Estimate for the company’s third-quarter earnings stands at $1.37 per share, which suggests a decline of 2.8% from the prior-year reported figure.

What Our Quantitative Model Unveils

Our proven model does not conclusively predict 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. But that’s not the case here.

Earnings ESP: Assurant has an Earnings ESP of -9.85%. This is because the Most Accurate Estimate of $1.24 is pegged lower than the Zacks Consensus Estimate of $1.37. 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 has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

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

Athene Holding Ltd. (ATH - Free Report) has an Earnings ESP of +1.71% and a Zacks Rank #2.

Voya Financial, Inc. (VOYA - Free Report) has an Earnings ESP of +2.23% and a Zacks Rank of 3.

MetLife, Inc. (MET - Free Report) has an Earnings ESP of +1.21% and a Zacks Rank #3.


In-Depth Zacks Research for the Tickers Above


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MetLife, Inc. (MET) - free report >>

Assurant, Inc. (AIZ) - free report >>

Athene Holding Ltd. (ATH) - free report >>

Voya Financial, Inc. (VOYA) - free report >>