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Assurant (AIZ) to Report Q2 Earnings: What's in the Offing?
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Assurant, Inc. (AIZ - Free Report) is slated to report second-quarter 2023 earnings on Aug 1, after the closing bell. AIZ delivered an earnings surprise in three of the last four quarters while missing in one, the average being 9.96%.
Factors to Note
Revenues are likely to have benefited from improved net earned premiums and higher net investment income. The Zacks Consensus Estimate for second-quarter revenues is pegged at $2.6 billion, suggesting growth of 2% from the year-ago quarter’s levels.
Net earned premiums are expected to have benefited from continued organic growth from strong prior-period U.S. sales in Global Automotive business, an improvement in extended service contracts and domestic mobile subscriber as well as Homeowners business.
The Zacks Consensus Estimate for second-quarter net earned premiums, fees and other income is pegged at $2.2 billion, down 10.8% from the year-ago reported number. We expect net earned premiums to increase 1.1% to $2.1 billion in the to-be-reported quarter. We expect fees and other income to decrease 6.5% to $304.1 million in the to-be-reported quarter.
Net investment income has benefited from income from higher yields on fixed maturity securities, short-term investments and cash and cash equivalents. The upside is likely to be partially offset by a decrease in income from other investments due to lower real estate joint venture sales. The Zacks Consensus Estimate for second-quarter net investment income is pegged at $110 million, up 19.5% from the year-ago reported number. We expect net investment income to increase 18.7% to $109.2 million in the to-be-reported quarter.
Global Housing is likely to have benefited from an increase in lender-placed policies in-force in Homeowners as well as higher average insured values and premium rates. The upside is likely to be partially offset by higher non-catastrophe loss experience across all major products and increased catastrophe reinsurance costs.
The Global Lifestyle segment is expected to have been affected by lower Connected Living results mainly because of higher claims costs within extended service contracts, weaker international performance from Asia Pacific and the unfavorable impact of foreign exchange.
Global Automotive is likely to have been affected by ongoing higher claims costs and elevated loss experience from higher claims costs due to inflation. Strong prior-period U.S. sales and growth in domestic mobile subscribers are likely to have offset the declines.
Total benefits, losses and expenses might have escalated because of higher policyholder benefits, underwriting, selling, general and administrative expenses as well as increased interest expense. We expect total expenses to decrease 1.2% to $2.4 billion.
Continued share buybacks are likely to have aided the bottom line in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $2.60 per share, which suggests a decline of 11.9% from the prior-year reported figure.
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 +0.52%. This is because the Most Accurate Estimate of $2.62 is pegged higher than the Zacks Consensus Estimate of $2.60. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
LMND’s earnings beat estimates in three of the last four quarters and missed in the other one.
American Equity Investment Life Holding Company (AEL - Free Report) has an Earnings ESP of +1.12% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2023 earnings is pegged at $1.65, indicating a year-over-year increase of 68.3%.
AEL’s earnings beat estimates in three of the last four quarters and missed in the other one.
Brighthouse Financial, Inc. (BHF - Free Report) has an Earnings ESP of +0.42% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2023 earnings is pegged at $3.55, indicating a year-over-year increase of 7.9%.
BHF’s earnings beat estimates in two of the last four quarters and missed in the other two.
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Assurant (AIZ) to Report Q2 Earnings: What's in the Offing?
Assurant, Inc. (AIZ - Free Report) is slated to report second-quarter 2023 earnings on Aug 1, after the closing bell. AIZ delivered an earnings surprise in three of the last four quarters while missing in one, the average being 9.96%.
Factors to Note
Revenues are likely to have benefited from improved net earned premiums and higher net investment income. The Zacks Consensus Estimate for second-quarter revenues is pegged at $2.6 billion, suggesting growth of 2% from the year-ago quarter’s levels.
Net earned premiums are expected to have benefited from continued organic growth from strong prior-period U.S. sales in Global Automotive business, an improvement in extended service contracts and domestic mobile subscriber as well as Homeowners business.
The Zacks Consensus Estimate for second-quarter net earned premiums, fees and other income is pegged at $2.2 billion, down 10.8% from the year-ago reported number. We expect net earned premiums to increase 1.1% to $2.1 billion in the to-be-reported quarter. We expect fees and other income to decrease 6.5% to $304.1 million in the to-be-reported quarter.
Net investment income has benefited from income from higher yields on fixed maturity securities, short-term investments and cash and cash equivalents. The upside is likely to be partially offset by a decrease in income from other investments due to lower real estate joint venture sales. The Zacks Consensus Estimate for second-quarter net investment income is pegged at $110 million, up 19.5% from the year-ago reported number. We expect net investment income to increase 18.7% to $109.2 million in the to-be-reported quarter.
Global Housing is likely to have benefited from an increase in lender-placed policies in-force in Homeowners as well as higher average insured values and premium rates. The upside is likely to be partially offset by higher non-catastrophe loss experience across all major products and increased catastrophe reinsurance costs.
The Global Lifestyle segment is expected to have been affected by lower Connected Living results mainly because of higher claims costs within extended service contracts, weaker international performance from Asia Pacific and the unfavorable impact of foreign exchange.
Global Automotive is likely to have been affected by ongoing higher claims costs and elevated loss experience from higher claims costs due to inflation. Strong prior-period U.S. sales and growth in domestic mobile subscribers are likely to have offset the declines.
Total benefits, losses and expenses might have escalated because of higher policyholder benefits, underwriting, selling, general and administrative expenses as well as increased interest expense. We expect total expenses to decrease 1.2% to $2.4 billion.
Continued share buybacks are likely to have aided the bottom line in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $2.60 per share, which suggests a decline of 11.9% from the prior-year reported figure.
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 +0.52%. This is because the Most Accurate Estimate of $2.62 is pegged higher than the Zacks Consensus Estimate of $2.60. 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) at present.
Stocks to Consider
Some insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Lemonade, Inc. (LMND - Free Report) has an Earnings ESP of +3.10% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2023 earnings indicates a year-over-year increase of 7.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
LMND’s earnings beat estimates in three of the last four quarters and missed in the other one.
American Equity Investment Life Holding Company (AEL - Free Report) has an Earnings ESP of +1.12% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2023 earnings is pegged at $1.65, indicating a year-over-year increase of 68.3%.
AEL’s earnings beat estimates in three of the last four quarters and missed in the other one.
Brighthouse Financial, Inc. (BHF - Free Report) has an Earnings ESP of +0.42% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2023 earnings is pegged at $3.55, indicating a year-over-year increase of 7.9%.
BHF’s earnings beat estimates in two of the last four quarters and missed in the other two.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.