Assurant, Inc. ( AIZ Quick Quote AIZ - Free Report) has been favored by investors on the back of continued organic growth across distribution channels, inorganic and organic growth strategies and effective capital deployment. Earnings Estimate
The Zacks Consensus Estimate for Assurant’s 2022 and 2023
earnings per share is pegged at $12 and $14.22, indicating year-over-year increases of 28.2% and 18.5%, respectively. The expected long-term earnings growth rate is 17.4%, higher than the industry average of 13.1%. Earnings Surprise History
Assurant has a decent surprise history, beating earnings estimates in three of the last four quarters and missing in one, the average earnings surprise being 11.26%.
The company currently carries a Zacks Rank #3 (Hold). AIZ stock has lost 5.7% in the past year compared with the Zacks S&P 500 composite’s decline of 19.9%.
Image Source: Zacks Investment Research Return on Equity (ROE)
Assurant’s ROE for the trailing 12 months is 11.6%, better than the industry average of 7.9%. The same expanded 260 basis points year over year.
AIZ 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
Continued organic growth across distribution channels, better loss experience from select ancillary products and higher investment income should drive Global Automotive of the Global Lifestyle segment. 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, trade-in and upgrade programs. Assurant has adopted inorganic and organic growth strategies to drive the Global Lifestyle segment. The buyouts of American Financial & Automotive Services, HYLA Mobile and EPG Insurance 2020 have enabled the insurer to fortify its market position and add scale. The Global Housing segment should gain from the higher average insured values and premium rates in lender-placed and growth in multi-family housing. Net investment income is expected to gain from higher income from fixed maturity securities related to higher invested assets, yields and rates on short-term investments, and cash and cash equivalents. Assurant has a strong capital management policy in place. Its solid capital position supports effective capital deployment. At present, $367.9 million remains unused under the repurchase authorization. AIZ expects to deploy capital to support business growth by funding investments, mergers and acquisitions and returning capital to shareholders in the form of share repurchases and dividends. Upbeat Guidance
Assurant expects 3% to 6% growth in adjusted EBITDA, excluding reportable catastrophes, driven by profitable growth in Global Lifestyle, partially offset by a decline in Global Housing.
Assurant expects 14% to 18% growth in adjusted earnings, excluding reportable catastrophes, per share, driven by share repurchases, including the return of net proceeds from the sale of Global Preneed, and earnings growth in Global Lifestyle. AIZ estimates about 10% average annual growth in 2023-2024. Segment-wise, Global Lifestyle is expected to deliver 10% average annual growth in 2023-2024. Stocks to Consider
Some better-ranked stocks from the multi-line insurance industry are
MGIC Investment Corporation ( MTG Quick Quote MTG - Free Report) , EverQuote, Inc. ( EVER Quick Quote EVER - Free Report) and Horace Mann Educators Corporation ( HMN Quick Quote HMN - Free Report) . While MGIC Investment sports a Zacks Rank #1 (Strong Buy), EverQuote and Horace Mann Educators carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. MGIC Investment’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 22.25%. In the past year, the insurer has declined 21.8%. The Zacks Consensus Estimate for MGIC Investment’s 2022 earnings implies 33.5% year-over-year growth. EverQuote’s earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 24.57%. In the past year, the insurer has declined 60.5%. The Zacks Consensus Estimate for EverQuote’s 2023 earnings implies 12.9% year-over-year growth. Horace Mann Educators’ earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 26.32%. In the past year, the insurer has declined 2.8%. The Zacks Consensus Estimate for HMN’s 2023 earnings implies 67.9% year-over-year growth.