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Here's What to Expect From Assurant (AIZ) in Q3 Earnings
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Assurant, Inc. (AIZ - Free Report) is slated to report third-quarter 2022 earnings on Nov 1, after the closing bell. AIZ delivered an earnings surprise in three of the last four quarters while missing in one, the average being 11.26%.
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 third-quarter revenues is pegged at $2.7 billion (in line with our estimate), suggesting growth of 5% from the year-ago quarter’s levels.
Net earned premiums are expected to have benefited from continued organic growth from strong U.S. sales in the Global Automotive business across all distribution channels, domestic mobile subscriber growth within cable operator distribution channel, higher average insured values and premium rates in the Lender-placed Insurance business and continued growth from renters insurance in Multifamily Housing business.
The consensus mark for net earned premiums and other considerations stands at $2.2 billion, which indicates an improvement of 4.2% from the prior-year reported figure. The same for fees and other income is pegged at $339 million, indicating growth of 9.4% from the year-ago quarter. We expect net earned premiums and fees to increase 5.2% to $26 billion.
Net investment income likely has benefited from higher invested assets in fixed maturity securities and commercial mortgage loans on real estate and increases in other investments related to higher sales and valuations. The Zacks Consensus Estimate for third-quarter revenue is pegged at $84 million, up 10.5% from the year-ago reported number.
The Global Lifestyle segment is expected to have benefited from solid business automobile and auto. We expect total revenue to increase 5.5% to $2.1 billion. The Zacks Consensus Estimate for third-quarter revenue is pegged at $2.1 billion, up 7.3% from the year-ago reported number. AIZ estimates adjusted EBITDA to be $166 million.
Global Automotive is likely to have benefited from higher investment income, including higher real estate gains and yields, favorable loss experience and select ancillary products
Total benefits, losses and expenses might have escalated due to higher selling, underwriting, general and administrative expenses. The third quarter has been affected by higher catastrophes. AIZ expects adjusted EBITDA in the to-be-reported quarter to be $116 million, down 31.4% due to reduced segment earnings and higher reportable catastrophes. Assurant estimates $124 million pre-tax in reportable catastrophes for the third quarter stemming from Hurricane Ian.
AIZ estimates Global Housing adjusted EBITDA to be a loss of $25 million.
Continued share buybacks are likely to have aided the bottom line in the to-be-reported quarter.
The Zacks Consensus Estimate for third-quarter earnings stands at $2.06 per share, which suggests an improvement of 46.1% from the prior-year reported figure. AIZ expects EPS to be $2.81 in the to-be-reported quarter.
What Our Quantitative Model Unveils
Our proven model does not predict an earnings beat for Assurant this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the odds of an earnings beat. This is not the case, as you can see below.
Earnings ESP: Assurant has an Earnings ESP of -7.18%. This is because the Most Accurate Estimate of $3.28 is pegged higher than the Zacks Consensus Estimate of $3.21. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some insurance stocks also with the right combination of elements to come up with an earnings beat this time around are:
Enact Holdings (ACT - Free Report) has an Earnings ESP of +1.69% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at 89 cents, indicating an increase of 5.9% from the year-ago reported figure.
ACT’s earnings beat estimates in the last four reported quarters.
EverQuote (EVER - Free Report) has an Earnings ESP of +4.88% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at a loss of 41 cents per share, wider than the year-ago loss of 18 cents.
EVER’s earnings beat estimates in three of the last four reported quarters while missing in one.
Trean Insurance Group has an Earnings ESP of +11.11% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at 9 cents, indicating a decrease of 40% from the year-ago reported figure.
TIG’s earnings beat estimates in one of the last four reported quarters, missed in two and met the mark in one.
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Here's What to Expect From Assurant (AIZ) in Q3 Earnings
Assurant, Inc. (AIZ - Free Report) is slated to report third-quarter 2022 earnings on Nov 1, after the closing bell. AIZ delivered an earnings surprise in three of the last four quarters while missing in one, the average being 11.26%.
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 third-quarter revenues is pegged at $2.7 billion (in line with our estimate), suggesting growth of 5% from the year-ago quarter’s levels.
Net earned premiums are expected to have benefited from continued organic growth from strong U.S. sales in the Global Automotive business across all distribution channels, domestic mobile subscriber growth within cable operator distribution channel, higher average insured values and premium rates in the Lender-placed Insurance business and continued growth from renters insurance in Multifamily Housing business.
The consensus mark for net earned premiums and other considerations stands at $2.2 billion, which indicates an improvement of 4.2% from the prior-year reported figure. The same for fees and other income is pegged at $339 million, indicating growth of 9.4% from the year-ago quarter. We expect net earned premiums and fees to increase 5.2% to $26 billion.
Net investment income likely has benefited from higher invested assets in fixed maturity securities and commercial mortgage loans on real estate and increases in other investments related to higher sales and valuations. The Zacks Consensus Estimate for third-quarter revenue is pegged at $84 million, up 10.5% from the year-ago reported number.
The Global Lifestyle segment is expected to have benefited from solid business automobile and auto. We expect total revenue to increase 5.5% to $2.1 billion. The Zacks Consensus Estimate for third-quarter revenue is pegged at $2.1 billion, up 7.3% from the year-ago reported number. AIZ estimates adjusted EBITDA to be $166 million.
Global Automotive is likely to have benefited from higher investment income, including higher real estate gains and yields, favorable loss experience and select ancillary products
Total benefits, losses and expenses might have escalated due to higher selling, underwriting, general and administrative expenses. The third quarter has been affected by higher catastrophes. AIZ expects adjusted EBITDA in the to-be-reported quarter to be $116 million, down 31.4% due to reduced segment earnings and higher reportable catastrophes. Assurant estimates $124 million pre-tax in reportable catastrophes for the third quarter stemming from Hurricane Ian.
AIZ estimates Global Housing adjusted EBITDA to be a loss of $25 million.
Continued share buybacks are likely to have aided the bottom line in the to-be-reported quarter.
The Zacks Consensus Estimate for third-quarter earnings stands at $2.06 per share, which suggests an improvement of 46.1% from the prior-year reported figure. AIZ expects EPS to be $2.81 in the to-be-reported quarter.
What Our Quantitative Model Unveils
Our proven model does not predict an earnings beat for Assurant this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the odds of an earnings beat. This is not the case, as you can see below.
Earnings ESP: Assurant has an Earnings ESP of -7.18%. This is because the Most Accurate Estimate of $3.28 is pegged higher than the Zacks Consensus Estimate of $3.21. 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-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 insurance stocks also with the right combination of elements to come up with an earnings beat this time around are:
Enact Holdings (ACT - Free Report) has an Earnings ESP of +1.69% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at 89 cents, indicating an increase of 5.9% from the year-ago reported figure.
ACT’s earnings beat estimates in the last four reported quarters.
EverQuote (EVER - Free Report) has an Earnings ESP of +4.88% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at a loss of 41 cents per share, wider than the year-ago loss of 18 cents.
EVER’s earnings beat estimates in three of the last four reported quarters while missing in one.
Trean Insurance Group has an Earnings ESP of +11.11% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at 9 cents, indicating a decrease of 40% from the year-ago reported figure.
TIG’s earnings beat estimates in one of the last four reported quarters, missed in two and met the mark in one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.