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AIZ Near 52-Week High: Time to Buy the Stock for Solid Returns?
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Key Takeaways
Assurant's fee-based, capital-light units now make up 52% of segment revenues and are growing double digits.
Connected Living and Global Lifestyle units are expected to drive 2025 EBITDA growth for AIZ.
AIZ plans to return $300 million to shareholders in 2025 through share repurchases and dividend hikes.
Shares of Assurant, Inc. (AIZ - Free Report) closed at $240.85 on Wednesday, near its 52-week high of $243.76. This proximity underscores investor confidence. It has the ingredients for further price appreciation.
The stock is trading above the 50-day and 200-day simple moving averages (SMA) of $225.33 and $207.85, respectively, indicating solid upward momentum. The SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
Earnings of Assurant grew 16.6% in the last five years, better than the industry average of 10.2%. Assurant has a solid history. The insurer has a solid track record of beating earnings estimates in each of the last four quarters, with an average being 22.74%.
Image Source: Zacks Investment Research
AIZ’s Attractive Valuation
Assurant shares are trading at a discount compared with the Zacks Multi-line Insurance industry. Its forward price-to-book value of 2.11X is lower than the industry average of 2.71X, the Finance sector’s 4.3X and the Zacks S&P 500 Composite’s 8.5X. The insurer has a Value Score of A.
Shares of The Travelers Companies, Inc. (TRV - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) are trading at a multiple higher than the industry average, while NMI Holdings Inc (NMIH - Free Report) shares are trading at a discount.
Image Source: Zacks Investment Research
AIZ Is an Outperformer
Shares of Assurant have risen 24.5% in the last six-month period, outperforming the industry's growth of 3.6%. In the same time frame, the Finance sector and the Zacks S&P 500 Index have increased 5.9% and 11.8%, respectively.
Image Source: Zacks Investment Research
With a market capitalization of $12.15 billion, the average volume of shares traded in the last three months was 0.3 million.
AIZ’s Growth Projection Encourages
The Zacks Consensus Estimate for Assurant’s 2025 earnings per share (EPS) indicates a year-over-year increase of 17%. The consensus estimate for revenues is pegged at $12.80 billion, implying a year-over-year improvement of 7%.
The consensus estimate for 2026 EPS and revenues indicates an increase of 8.3% and 5.5%, respectively, from the corresponding 2025 estimates.
Optimistic Analyst Sentiment for AIZ
Two of the five analysts covering the stock have raised estimates for both 2025 and 2026 over the past 30 days. Thus, the Zacks Consensus Estimate for 2025 and 2026 earnings has moved north 0.4% and 0.3%, respectively, over the past 30 days.
Average Target Price for AIZ Suggests Upside
Based on short-term price targets offered by six analysts, the Zacks average price target is $255.67 per share. The average suggests a potential 5.5% upside from the last closing price.
Image Source: Zacks Investment Research
Assurant’s Favorable Return on Capital
Return on equity in the trailing 12 months was 18.6%, better than the industry average of 15%. This highlights the company’s efficiency in utilizing shareholders’ funds.
Also, the return on invested capital (ROIC) has been increasing over the last few quarters as the company raised its capital investment over the same time frame, reflecting AIZ’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 12.2%, better than the industry average of 2%.
Key Points to Note for AIZ
Assurant’s focus on growing fee-based, capital-light businesses, which account for 52% of segmental revenues, bodes well for growth. Management estimates that the contribution from the same will continue to grow in double digits over the long term.
Within Connected Living, AIZ continues to support long-term growth through the development of innovative offerings for partners. U.S. Connected Living is poised for solid growth, particularly within the mobile protection business, riding on innovative offerings, customer experience expertise and improved relationships with mobile carriers and cable operators.
Homeowners’ top-line growth, more favorable loss experience from prior-period development on claims, growth in policies in-force and higher average premiums within lender-placed, as well as growth across various specialty products, should drive better results at Global Housing. For 2025, AIZ expects Global Housing adjusted EBITDA, excluding reportable catastrophes, to deliver strong growth.
Global Lifestyle growth is expected to be driven by Connected Living, supported by growth in global mobile device protection and a new financial services program, along with inorganic and organic growth strategies. For 2025, Global Lifestyle adjusted EBITDA is projected to increase from growth in Connected Living and Global Automotive.
The insurer remains focused on ramping up the Connected Living platform, deploying innovative products and services, and adding new partnerships. These initiatives are expected to double the margins of Connected Living to 8% over the long term.
Wealth Distribution
Assurant has a solid capital management policy. It expects to deploy capital to fund investments, mergers and acquisitions. In November 2024, the board approved a dividend hike of 11%, which is the 20th consecutive year of increase. As of Sept. 30, 2025, $168.3 million in aggregate cost at purchase remained unused under the repurchase authorization.
For 2025, AIZ expects to return $300 million to shareholders through share repurchases, at the top end of the $200 million to $300 million anticipated range from the beginning of the year. For the fourth quarter of 2025, AIZ expects a higher level of segment dividends given the business's ability to generate meaningful cash flows.
Final Take on AIZ
Focus on capital-light businesses, Homeowners growth and Connected Living growth within the mobile protection business should favor Assurant’s results. Higher return on capital, favorable growth estimates and attractive valuations should continue to benefit the insurer over the long term.
Coupled with an impressive dividend history, solid growth projections, favorable ROE and optimistic analyst sentiment, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Assurant also has a VGM Score of A. Stocks with a favorable VGM Score are those with the most attractive value, best growth and most promising momentum compared with peers. Its impressive dividend history as well as attractive valuations are other positives. Back-tested results show that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.
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AIZ Near 52-Week High: Time to Buy the Stock for Solid Returns?
Key Takeaways
Shares of Assurant, Inc. (AIZ - Free Report) closed at $240.85 on Wednesday, near its 52-week high of $243.76. This proximity underscores investor confidence. It has the ingredients for further price appreciation.
The stock is trading above the 50-day and 200-day simple moving averages (SMA) of $225.33 and $207.85, respectively, indicating solid upward momentum. The SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
Earnings of Assurant grew 16.6% in the last five years, better than the industry average of 10.2%. Assurant has a solid history. The insurer has a solid track record of beating earnings estimates in each of the last four quarters, with an average being 22.74%.
Image Source: Zacks Investment Research
AIZ’s Attractive Valuation
Assurant shares are trading at a discount compared with the Zacks Multi-line Insurance industry. Its forward price-to-book value of 2.11X is lower than the industry average of 2.71X, the Finance sector’s 4.3X and the Zacks S&P 500 Composite’s 8.5X. The insurer has a Value Score of A.
Shares of The Travelers Companies, Inc. (TRV - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) are trading at a multiple higher than the industry average, while NMI Holdings Inc (NMIH - Free Report) shares are trading at a discount.
Image Source: Zacks Investment Research
AIZ Is an Outperformer
Shares of Assurant have risen 24.5% in the last six-month period, outperforming the industry's growth of 3.6%. In the same time frame, the Finance sector and the Zacks S&P 500 Index have increased 5.9% and 11.8%, respectively.
Image Source: Zacks Investment Research
With a market capitalization of $12.15 billion, the average volume of shares traded in the last three months was 0.3 million.
AIZ’s Growth Projection Encourages
The Zacks Consensus Estimate for Assurant’s 2025 earnings per share (EPS) indicates a year-over-year increase of 17%. The consensus estimate for revenues is pegged at $12.80 billion, implying a year-over-year improvement of 7%.
The consensus estimate for 2026 EPS and revenues indicates an increase of 8.3% and 5.5%, respectively, from the corresponding 2025 estimates.
Optimistic Analyst Sentiment for AIZ
Two of the five analysts covering the stock have raised estimates for both 2025 and 2026 over the past 30 days. Thus, the Zacks Consensus Estimate for 2025 and 2026 earnings has moved north 0.4% and 0.3%, respectively, over the past 30 days.
Average Target Price for AIZ Suggests Upside
Based on short-term price targets offered by six analysts, the Zacks average price target is $255.67 per share. The average suggests a potential 5.5% upside from the last closing price.
Image Source: Zacks Investment Research
Assurant’s Favorable Return on Capital
Return on equity in the trailing 12 months was 18.6%, better than the industry average of 15%. This highlights the company’s efficiency in utilizing shareholders’ funds.
Also, the return on invested capital (ROIC) has been increasing over the last few quarters as the company raised its capital investment over the same time frame, reflecting AIZ’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 12.2%, better than the industry average of 2%.
Key Points to Note for AIZ
Assurant’s focus on growing fee-based, capital-light businesses, which account for 52% of segmental revenues, bodes well for growth. Management estimates that the contribution from the same will continue to grow in double digits over the long term.
Within Connected Living, AIZ continues to support long-term growth through the development of innovative offerings for partners. U.S. Connected Living is poised for solid growth, particularly within the mobile protection business, riding on innovative offerings, customer experience expertise and improved relationships with mobile carriers and cable operators.
Homeowners’ top-line growth, more favorable loss experience from prior-period development on claims, growth in policies in-force and higher average premiums within lender-placed, as well as growth across various specialty products, should drive better results at Global Housing. For 2025, AIZ expects Global Housing adjusted EBITDA, excluding reportable catastrophes, to deliver strong growth.
Global Lifestyle growth is expected to be driven by Connected Living, supported by growth in global mobile device protection and a new financial services program, along with inorganic and organic growth strategies. For 2025, Global Lifestyle adjusted EBITDA is projected to increase from growth in Connected Living and Global Automotive.
The insurer remains focused on ramping up the Connected Living platform, deploying innovative products and services, and adding new partnerships. These initiatives are expected to double the margins of Connected Living to 8% over the long term.
Wealth Distribution
Assurant has a solid capital management policy. It expects to deploy capital to fund investments, mergers and acquisitions. In November 2024, the board approved a dividend hike of 11%, which is the 20th consecutive year of increase. As of Sept. 30, 2025, $168.3 million in aggregate cost at purchase remained unused under the repurchase authorization.
For 2025, AIZ expects to return $300 million to shareholders through share repurchases, at the top end of the $200 million to $300 million anticipated range from the beginning of the year. For the fourth quarter of 2025, AIZ expects a higher level of segment dividends given the business's ability to generate meaningful cash flows.
Final Take on AIZ
Focus on capital-light businesses, Homeowners growth and Connected Living growth within the mobile protection business should favor Assurant’s results. Higher return on capital, favorable growth estimates and attractive valuations should continue to benefit the insurer over the long term.
Coupled with an impressive dividend history, solid growth projections, favorable ROE and optimistic analyst sentiment, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Assurant also has a VGM Score of A. Stocks with a favorable VGM Score are those with the most attractive value, best growth and most promising momentum compared with peers. Its impressive dividend history as well as attractive valuations are other positives. Back-tested results show that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.