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Will Assurant's Beat Streak Continue This Earnings Season?

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Key Takeaways

  • Assurant's Q4 outlook reflects solid Global Housing performance and growth in the Global Lifestyle segment.
  • Assurant's revenues are expected to benefit from higher net earned premiums, fees and net investment income.
  • Assurant's bottom line may be aided by continued share buybacks, despite higher underwriting expenses.

Assurant, Inc. (AIZ - Free Report) is expected to register an improvement in its top and bottom lines when it reports fourth-quarter 2025 results on Feb. 10, after the closing bell.

The Zacks Consensus Estimate for AIZ’s fourth-quarter revenues is pegged at $3.28 billion, indicating 4.7% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at $5.55 per share. The Zacks Consensus Estimate for AIZ’s fourth-quarter earnings has moved up 5.5% in the past 30 days. The estimate suggests a year-over-year increase of 15.8%.

What the Zacks Model Unveils for AIZ

Our proven model predicts an earnings beat for Assurant this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat.

Earnings ESP of AIZ: Assurant has an Earnings ESP of +13.61%. This is because the Most Accurate Estimate of $6.31 is pegged higher than the Zacks Consensus Estimate of $5.55. 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 and EPS Surprise

Assurant, Inc. price-eps-surprise | Assurant, Inc. Quote

Assurant’s Zacks Rank: AIZ carries a Zacks Rank #3 at present.

Factors Likely to Shape Q4 Results of AIZ

Solid performance at the Global Housing segment, as well as growth in Global Lifestyle, is likely to have aided the fourth-quarter performance of Assurant.

Revenues are likely to have gained from improved net earned premiums and higher net investment income.

Net earned premiums are expected to have benefited from higher premiums in the Global Housing and Global Lifestyle segments.
The Zacks Consensus Estimate for fourth-quarter net earned premiums, fees and other income is pegged at $2.6 billion. We expect net earned premiums to increase 3.8% to $2.6 billion in the to-be-reported quarter. Fees and other income are expected to increase 6.1% to $465.4 million in the fourth quarter.

Net investment income is expected to have been driven by higher assets and yields in fixed maturity securities. The upside is likely to have been partially offset by reduced income due to lower yields and balances in cash and cash equivalents and reduced income in real estate joint ventures. The Zacks Consensus Estimate for fourth-quarter net investment income is pegged at $134 million. We expect net investment income to be $129.3 million.

Global Housing is expected to have been driven by the non-run rate adjustment, growth in Homeowners from higher lender-placed policies in force and average premiums, growth in Renters and Other, primarily from a block of newly acquired renters policies, and growth across various specialty products within Homeowners, and continued growth in service fees within Homeowners. The Zacks Consensus Estimate for the segment’s fourth-quarter revenues is pegged at $734 million, suggesting growth of 7.1% from the year-ago quarter’s level. We expect the segment’s revenues to be $698.6 million.

Global Lifestyle is likely to have benefited from Connected Living from global mobile subscriber growth and a new financial services program, improvement in Global Automotive, and a rise in global mobile trade-in programs within Connected Living. The Zacks Consensus Estimate and our estimate for the segment’s fourth-quarter revenues are both pegged at $2.5 billion, suggesting growth of 2.7% from the year-ago quarter’s level. We expect the segment’s revenues to be $2.5 billion.

Total benefits, losses and expenses might have escalated because of higher underwriting and selling, general and administrative expenses. We expect total expenses to be $2.8 billion.

Continued share buybacks are likely to have aided the bottom line in the to-be-reported quarter.

Other Stocks to Consider

Here are some other finance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:

American International Group, Inc. (AIG - Free Report) has an Earnings ESP of +0.39% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $1.89 per share, indicating a year-over-year increase of 45.3%. 

AIG’s earnings beat estimates in each of the last four reported quarters.

Goosehead Insurance (GSHD - Free Report) has an Earnings ESP of +4.03% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at 54 cents per share, implying a decrease of 31.6% from the year-ago reported figure.

GSHD’s earnings beat estimates in two of the last four quarters while missing in the other two.

Kinsale Capital Group, Inc. (KNSL - Free Report) has an Earnings ESP of +0.59% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $5.30, indicating a year-over-year increase of 14.7%.

KNSL’s earnings beat estimates in each of the last four reported quarters.

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