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Here's Why Investors May Consider Betting on Assurant (AIZ) Now
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Assurant, Inc. (AIZ - Free Report) has been favored by investors on the back of higher investment income, organic growth across distribution channels and solid cash flow generation.
Earnings Estimates
The Zacks Consensus Estimate for Assurant’s 2022 and 2023 earnings per share is pegged at $12.88 and $14.55, indicating year-over-year increases of 37.6% and 12.9%, respectively. The expected long-term earnings growth rate is 17.2%, higher than the industry average of 9.5%.
Estimate Revision
The Zacks Consensus Estimate for 2022 and 2023 has moved 3.5% and 0.5% north, respectively, in the past 30 days, reflecting analysts’ optimism.
Earnings Surprise History
Assurant has a decent earnings surprise history, with a trailing four-quarter earnings surprise of 18.31%, on average.
Zacks Rank
The company currently carries a Zacks Rank #2 (Buy). The AIZ stock has rallied 12.3% in the past year against the industry’s decline of 18.7%.
Image Source: Zacks Investment Research
Return on Equity (ROE)
Assurant’s ROE for the trailing 12 months is 11.2%, up 240 basis points year over year. This reflects AIZ’s efficiency in utilizing shareholders’ funds.
Style Score
Assurant has a favorable VGM Score of B. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
Solid performance in Global Automotive and Connected Living is likely to drive the Global Lifestyle segment. Continued organic growth across distribution channels, better loss experience from select ancillary products and higher investment income should drive Global Automotive. Connected Living is likely to gain from higher trade-in volumes, higher international earnings and continued mobile subscriber growth in North America.
Adjusted EBITDA in Global Lifestyle is expected to grow on the back of mobile in Connected Living from the global expansion in existing and new clients across device protection, and trade-in and upgrade programs.
The Global Housing segment should gain from higher average insured values and premium rates in lender-placed and growth in multifamily housing. For 2022, Assurant expects to generate strong cash flow, which is a core component of the company’s financial profile. Sustained earnings growth and cash flow generation are expected to provide the insurer with the flexibility to drive long-term growth.
Assurant boasts a proven track record of making high-return, strategic investments in businesses, along with returning capital to shareholders, which is likely to maximize value creation in the long run.
In the first quarter of 2022, Assurant repurchased 1.5 million shares for $242 million. From Apr 1 through May 1, 2022, Assurant repurchased additional shares for approximately $86 million. It now has $514 million remaining under the current repurchase authorization.
Upbeat Guidance
Assurant expects 8 to 10% growth in adjusted EBITDA, excluding reportable catastrophes, driven by profitable growth across Global Lifestyle and Global Housing.
Assurant expects 16% to 20% growth in adjusted earnings, excluding reportable catastrophes, per share, driven by continued profitable growth and share buybacks.
Other Stocks to Consider
Some other top-ranked stocks from the property and casualty insurance sector are W.R. Berkley Corporation (WRB - Free Report) , American Financial Group, Inc. (AFG - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) . While W.R. Berkley and American Financial currently sport a Zacks Rank #1 (Strong Buy), Cincinnati Financial carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
W.R. Berkley’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 27.08%. In the past year, W.R. Berkley stock has increased 23.7%.
The Zacks Consensus Estimate for WRB’s 2022 and 2023 earnings has moved 6.3% and 6.2% north, respectively, in the past 30 days.
American Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 41.72%. In the past year, American Financial has rallied 9%.
The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 9.8% and 6.9% north, respectively, in the past seven days.
The bottom line of Cincinnati Financial surpassed earnings estimates in each of the last four quarters, the average being 32.55%. In the past year, the insurer has rallied 3.2%.
The Zacks Consensus Estimate for Cincinnati Financial’s 2022 and 2023 earnings has moved 3.6% and 1.7% north, respectively, in the past 30 days.
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Here's Why Investors May Consider Betting on Assurant (AIZ) Now
Assurant, Inc. (AIZ - Free Report) has been favored by investors on the back of higher investment income, organic growth across distribution channels and solid cash flow generation.
Earnings Estimates
The Zacks Consensus Estimate for Assurant’s 2022 and 2023 earnings per share is pegged at $12.88 and $14.55, indicating year-over-year increases of 37.6% and 12.9%, respectively. The expected long-term earnings growth rate is 17.2%, higher than the industry average of 9.5%.
Estimate Revision
The Zacks Consensus Estimate for 2022 and 2023 has moved 3.5% and 0.5% north, respectively, in the past 30 days, reflecting analysts’ optimism.
Earnings Surprise History
Assurant has a decent earnings surprise history, with a trailing four-quarter earnings surprise of 18.31%, on average.
Zacks Rank
The company currently carries a Zacks Rank #2 (Buy). The AIZ stock has rallied 12.3% in the past year against the industry’s decline of 18.7%.
Image Source: Zacks Investment Research
Return on Equity (ROE)
Assurant’s ROE for the trailing 12 months is 11.2%, up 240 basis points year over year. This reflects AIZ’s efficiency in utilizing shareholders’ funds.
Style Score
Assurant has a favorable VGM Score of B. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
Solid performance in Global Automotive and Connected Living is likely to drive the Global Lifestyle segment. Continued organic growth across distribution channels, better loss experience from select ancillary products and higher investment income should drive Global Automotive. Connected Living is likely to gain from higher trade-in volumes, higher international earnings and continued mobile subscriber growth in North America.
Adjusted EBITDA in Global Lifestyle is expected to grow on the back of mobile in Connected Living from the global expansion in existing and new clients across device protection, and trade-in and upgrade programs.
The Global Housing segment should gain from higher average insured values and premium rates in lender-placed and growth in multifamily housing.
For 2022, Assurant expects to generate strong cash flow, which is a core component of the company’s financial profile. Sustained earnings growth and cash flow generation are expected to provide the insurer with the flexibility to drive long-term growth.
Assurant boasts a proven track record of making high-return, strategic investments in businesses, along with returning capital to shareholders, which is likely to maximize value creation in the long run.
In the first quarter of 2022, Assurant repurchased 1.5 million shares for $242 million. From Apr 1 through May 1, 2022, Assurant repurchased additional shares for approximately $86 million. It now has $514 million remaining under the current repurchase authorization.
Upbeat Guidance
Assurant expects 8 to 10% growth in adjusted EBITDA, excluding reportable catastrophes, driven by profitable growth across Global Lifestyle and Global Housing.
Assurant expects 16% to 20% growth in adjusted earnings, excluding reportable catastrophes, per share, driven by continued profitable growth and share buybacks.
Other Stocks to Consider
Some other top-ranked stocks from the property and casualty insurance sector are W.R. Berkley Corporation (WRB - Free Report) , American Financial Group, Inc. (AFG - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) . While W.R. Berkley and American Financial currently sport a Zacks Rank #1 (Strong Buy), Cincinnati Financial carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
W.R. Berkley’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 27.08%. In the past year, W.R. Berkley stock has increased 23.7%.
The Zacks Consensus Estimate for WRB’s 2022 and 2023 earnings has moved 6.3% and 6.2% north, respectively, in the past 30 days.
American Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 41.72%. In the past year, American Financial has rallied 9%.
The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 9.8% and 6.9% north, respectively, in the past seven days.
The bottom line of Cincinnati Financial surpassed earnings estimates in each of the last four quarters, the average being 32.55%. In the past year, the insurer has rallied 3.2%.
The Zacks Consensus Estimate for Cincinnati Financial’s 2022 and 2023 earnings has moved 3.6% and 1.7% north, respectively, in the past 30 days.