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Is a Beat in the Cards for Assurant (AIZ) in Q1 Earnings?

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Assurant, Inc. (AIZ - Free Report) is slated to report first-quarter 2022 earnings on May 3, after the closing bell. AIZ delivered an earnings surprise in each of the last four quarters, the average being 17.03%.

Factors to Note

Revenues are likely to have benefited from improved net earned premiums, higher fees and other income and net investment income. The Zacks Consensus Estimate for first-quarter revenues is pegged at $2.6 billion, which suggests growth of 7.1% from the year-ago quarter.

Net earned premiums are likely to have benefited from continued growth from strong U.S. sales in the Global Automotive business across all distribution channels, average insured value and premium rate increases in Lender-placed Insurance business as well as continued growth from renters insurance in the Multifamily Housing business.

The consensus mark for net earned premiums and other considerations stands at $2.2 billion, which indicates an improvement of 4.9% from the prior-year reported figure. Meanwhile, the same for fees and other income is pegged at $316 million, suggesting growth of 26.4% from the year-ago quarter.

Net investment income in the to-be-reported quarter is likely to have benefited from higher income from real estate-related investments, gains from the sale of real estate joint venture properties, higher valuations in real estate joint venture and other partnerships as well as higher income from limited partnerships. The Zacks Consensus Estimate for first-quarter net investment income stands at $79 million, which indicates an improvement of 3.9% year over year.

The Global Lifestyle segment is expected to have benefited from growth in Global Automotive, continued expansion in mobile within Connected Living and greater contributions from Global Financial Services and Other.

Global Lifestyle is likely to have benefited from strong Global Automotive sales across the United States as well as growth in Connected Living from extended service contracts.

Total benefits, losses and expenses might have escalated due to higher selling, underwriting, general and administrative expenses and interest expense.

Continued share buyback is likely to have aided the bottom line in the to-be-reported quarter.

The Zacks Consensus Estimate for first-quarter earnings stands at $2.86 per share, which suggests an improvement of 15.8% from the prior-year 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 +6.18%. This is because the Most Accurate Estimate of $3.04 is pegged higher than the Zacks Consensus Estimate of $2.86. 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 and EPS Surprise

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

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

Other Stocks to Consider

Some other insurance stocks with the right combination of elements to come up with an earnings beat this time around are:

NMI Holdings Inc. (NMIH - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 75 cents, indicating an increase of 20.9% from the year-ago reported figure.

NMIH’s earnings beat estimates in each of the four trailing quarters of 2021.

ProAssurance Corporation (PRA - Free Report) has an Earnings ESP of +27.54% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 17 cents, indicating an increase of 325% from the year-ago reported figure.

PRA’s earnings beat estimates in each of the four trailing quarters of 2021.

Horace Mann Educators Corporation (HMN - Free Report) has an Earnings ESP of +3.74% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 94 cents, indicating a decline of 14.5% from the year-ago reported figure.

HMN’s earnings beat estimates in each of the four trailing quarters of 2021.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.