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AIZ Stock Outperforms Industry: Time to Hold or Buy?
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Key Takeaways
AIZ is expanding fee-based capital-light businesses with a double-digit growth outlook.
Assurant sees Connected Living growth from mobile protection, partner innovation and stronger carrier ties.
AIZ invests in AI and Home Warranty expansion while maintaining strong capital returns and liquidity position.
Shares of Assurant, Inc.(AIZ - Free Report) have gained 14.1% in the past year compared with the Multi-line Insurance industry’s 2.3% growth. The Finance sector and the Zacks S&P 500 composite have gained in the same time frame.
The insurer has a market capitalization of $11.6 billion. The average volume of shares traded in the last three months was 0.4 million.
Shares of AIZ's peers Aegon Ltd (AEG - Free Report) and AllianzSE (ALIZY - Free Report) have gained 31.4% and 16.9%, respectively, while those of American International Group (AIG - Free Report) have declined 4.5%.
Image Source: Zacks Investment Research
AIZ Shares Are Undervalued
AIZ shares are trading at a discount compared with the industry. Its forward price-to-book value of 1.88X is lower than the industry average of 2.57X, the finance sector's 4.13X, and the Zacks S&P 500 composite’s 8.14X.
Image Source: Zacks Investment Research
AIZ’s Growth Projection Encourages
The Zacks Consensus Estimate for Assurant’s 2026 earnings per share (EPS) is pinned at $20.75, indicating a year-over-year increase of 4.9%. The consensus estimate for revenues is pegged at $13.63 billion, implying a year-over-year improvement of 6.1%.
Management estimates adjusted earnings, excluding reportable catastrophes, per share, to be consistent with 2025 levels or increase in the mid-to-high single-digit ranges.
The consensus estimate for 2027 EPS and revenues indicates an increase of 7.6% and 6.4%, respectively, from the corresponding 2026 estimates.
Earnings of Assurant grew 17.3% in the last five years, better than the industry average of 10.4%. The insurer has a solid track record of beating earnings estimates in each of the last four quarters, with the average being 20.36%.
Average Target Price for AIZ Suggests Upside
Based on short-term price targets offered by six analysts, the Zacks average price target is $260 per share. This average suggests a potential 18.51% 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 18.65%, better than the industry average of 12.1%. This highlights the company’s efficiency in utilizing shareholders’ funds.
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 12.1%, better than the industry average of 2.1%.
Key Points to Note for AIZ
Assurant is focusing on growing fee-based capital-light businesses that presently constitute 52% of segmental revenues. Management estimates this contribution to continue growing at a double-digit rate over the longer term.
Connected Living remains a key growth engine, supported by expansion in mobile protection programs with Verizon/Total Wireless, T-Mobile, Best Buy Geek Squad, and Chase Card Services, along with international expansion. Strategic partnerships with carriers, retailers, and financial institutions are strengthening distribution. The company is expanding Connected Living through innovation and partnerships, targeting 8% margins over the long term.
AIZ’s focus on AI, automation, and robotics is improving operational efficiency across claims processing and device handling. These technologies enhance customer experience while increasing turnaround speed and resale value.
Thus, for 2026, Global Lifestyle adjusted EBITDA is projected to increase in the high single digits with contributions from Connected Living and Global Automotive. AIZ continues to expect growth within Global Lifestyle, where both Connected Living and Global Automotive are expected to grow.
The Housing business remains a key earnings pillar, driven by growth in lender-placed insurance, renters solutions, and favorable industry conditions supporting policy expansion. Management expects combined ratios in the low-to-mid 80% range, reflecting continued profitability and resilience.
Meanwhile, the Auto segment is stabilizing with improved loss experience from pricing actions and better claims management. Expansion across dealer networks, OEMs, and lending partners supports steady earnings growth. Management estimates Global Housing adjusted EBITDA, excluding reportable catastrophes, to decrease in 2026.
Home Warranty is a new long-term growth vector. Management described Home Warranty as a path to market leadership, with an expected $15–$20 million incremental investment in 2026 and a long-term profit opportunity. Assurant signed a long-term agreement with Compass International Holdings across six U.S. real estate brands, expanding its total addressable market and distribution reach.
Focus on inorganic and organic growth strategies bodes well for Assurant's growth. For 2026, it expects adjusted EBITDA, excluding reportable catastrophes, to be consistent with 2025 levels.
AIZ has a solid capital management policy. It expects to deploy capital to fund investments, mergers and acquisitions. Assurant ended 2025 with strong liquidity, returned $300 million via buybacks, increased its dividend by 10%, and marked its 21st consecutive year of dividend increases. The company plans $250–$350 million in share buybacks in 2026, along with continued dividends.
Conclusion
AIZ has witnessed broad-based growth, improving margins, strong cash generation, disciplined capital returns, and multiple new growth levers across Lifestyle, Housing, and Home Warranty, which favor its results. Higher return on capital, favorable growth estimates and attractive valuations should continue to benefit the insurer over the long term.
Its impressive dividend history and attractive valuations are other positives.
View the Zacks #1 Rank List
Image: Bigstock
AIZ Stock Outperforms Industry: Time to Hold or Buy?
Key Takeaways
Shares of Assurant, Inc.(AIZ - Free Report) have gained 14.1% in the past year compared with the Multi-line Insurance industry’s 2.3% growth. The Finance sector and the Zacks S&P 500 composite have gained in the same time frame.
The insurer has a market capitalization of $11.6 billion. The average volume of shares traded in the last three months was 0.4 million.
Shares of AIZ's peers Aegon Ltd (AEG - Free Report) and Allianz SE (ALIZY - Free Report) have gained 31.4% and 16.9%, respectively, while those of American International Group (AIG - Free Report) have declined 4.5%.
Image Source: Zacks Investment Research
AIZ Shares Are Undervalued
AIZ shares are trading at a discount compared with the industry. Its forward price-to-book value of 1.88X is lower than the industry average of 2.57X, the finance sector's 4.13X, and the Zacks S&P 500 composite’s 8.14X.
Image Source: Zacks Investment Research
AIZ’s Growth Projection Encourages
The Zacks Consensus Estimate for Assurant’s 2026 earnings per share (EPS) is pinned at $20.75, indicating a year-over-year increase of 4.9%. The consensus estimate for revenues is pegged at $13.63 billion, implying a year-over-year improvement of 6.1%.
Management estimates adjusted earnings, excluding reportable catastrophes, per share, to be consistent with 2025 levels or increase in the mid-to-high single-digit ranges.
The consensus estimate for 2027 EPS and revenues indicates an increase of 7.6% and 6.4%, respectively, from the corresponding 2026 estimates.
Earnings of Assurant grew 17.3% in the last five years, better than the industry average of 10.4%. The insurer has a solid track record of beating earnings estimates in each of the last four quarters, with the average being 20.36%.
Average Target Price for AIZ Suggests Upside
Based on short-term price targets offered by six analysts, the Zacks average price target is $260 per share. This average suggests a potential 18.51% 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 18.65%, better than the industry average of 12.1%. This highlights the company’s efficiency in utilizing shareholders’ funds.
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 12.1%, better than the industry average of 2.1%.
Key Points to Note for AIZ
Assurant is focusing on growing fee-based capital-light businesses that presently constitute 52% of segmental revenues. Management estimates this contribution to continue growing at a double-digit rate over the longer term.
Connected Living remains a key growth engine, supported by expansion in mobile protection programs with Verizon/Total Wireless, T-Mobile, Best Buy Geek Squad, and Chase Card Services, along with international expansion. Strategic partnerships with carriers, retailers, and financial institutions are strengthening distribution. The company is expanding Connected Living through innovation and partnerships, targeting 8% margins over the long term.
AIZ’s focus on AI, automation, and robotics is improving operational efficiency across claims processing and device handling. These technologies enhance customer experience while increasing turnaround speed and resale value.
Thus, for 2026, Global Lifestyle adjusted EBITDA is projected to increase in the high single digits with contributions from Connected Living and Global Automotive. AIZ continues to expect growth within Global Lifestyle, where both Connected Living and Global Automotive are expected to grow.
The Housing business remains a key earnings pillar, driven by growth in lender-placed insurance, renters solutions, and favorable industry conditions supporting policy expansion. Management expects combined ratios in the low-to-mid 80% range, reflecting continued profitability and resilience.
Meanwhile, the Auto segment is stabilizing with improved loss experience from pricing actions and better claims management. Expansion across dealer networks, OEMs, and lending partners supports steady earnings growth. Management estimates Global Housing adjusted EBITDA, excluding reportable catastrophes, to decrease in 2026.
Home Warranty is a new long-term growth vector. Management described Home Warranty as a path to market leadership, with an expected $15–$20 million incremental investment in 2026 and a long-term profit opportunity. Assurant signed a long-term agreement with Compass International Holdings across six U.S. real estate brands, expanding its total addressable market and distribution reach.
Focus on inorganic and organic growth strategies bodes well for Assurant's growth. For 2026, it expects adjusted EBITDA, excluding reportable catastrophes, to be consistent with 2025 levels.
AIZ has a solid capital management policy. It expects to deploy capital to fund investments, mergers and acquisitions. Assurant ended 2025 with strong liquidity, returned $300 million via buybacks, increased its dividend by 10%, and marked its 21st consecutive year of dividend increases. The company plans $250–$350 million in share buybacks in 2026, along with continued dividends.
Conclusion
AIZ has witnessed broad-based growth, improving margins, strong cash generation, disciplined capital returns, and multiple new growth levers across Lifestyle, Housing, and Home Warranty, which favor its results. Higher return on capital, favorable growth estimates and attractive valuations should continue to benefit the insurer over the long term.
Its impressive dividend history and attractive valuations are other positives.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.