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AIZ Q1 Earnings & Revenues Top Estimates on Solid Investment Income
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Key Takeaways
AIZ Q1 EPS rose 76% and beat estimates, driven by lower catastrophes and segment strength.
Assurant revenues climbed 11.4% to $3.4B on higher premiums, fees and investment income.
AIZ sees low single-digit 2026 earnings growth, with Lifestyle up 10% and Housing modestly down.
Assurant, Inc. (AIZ - Free Report) reported first-quarter 2026 net operating income of $5.95 per share, which beat the Zacks Consensus Estimate by 10.2%. The bottom line increased 76% year over year.
Quarterly results benefited from lower reportable catastrophes, solid performance in both Global Lifestyle and Global Housing, and earnings growth across both Connected Living and Global Automotive. It was partially offset by higher expenses.
Total revenues increased 11.4% year over year to $3.4 billion, driven by higher net earned premiums and fees, other income, and net investment income. The top line beat the Zacks Consensus Estimate by 4.4%.
Net investment income was up 27.9% year over year to $159.6 million. The figure was higher than our estimate of $133 million.
Total benefits, losses and expenses increased 6.7% to $3 billion, mainly due to higher underwriting, selling, general, and administrative expenses, and interest expense. The figure was higher than our estimate of $2.9 billion.
Revenues at Global Housing increased 11.5% year over year to $769.8 million, primarily driven by higher Total net earned premiums, fees, and other income and net investment income. The figure was higher than our estimate of $737.8 million.
Adjusted EBITDA doubled year over year to $236.7 million, primarily due to $132.3 million of lower pre-tax reportable catastrophes. The figure was higher than our estimate of $207.8 million.
Revenues at Global Lifestyle rose 11.3% year over year to $2.6 billion. The increase was primarily driven by higher net earned premiums, fees and other income and net investment income. The figure was higher than our estimate of $2.5 billion.
Adjusted EBITDA of $236.7 million increased 20% year over year, driven by double-digit earnings growth across both Connected Living and Global Automotive.
Connected Living results benefited from subscriber growth in mobile protection programs and trade-in performance. Global Automotive results increased from higher investment income, including the gain noted above, and improved loss experience. The figure was higher than our estimate of $169.8 million.
Adjusted EBITDA loss at Corporate & Other was $31.9 million, wider than the year-ago quarter’s adjusted EBITDA loss of $28 million, primarily due to organic investments to support our Home Warranty business. It was partially offset by higher investment income from higher assets.
Financial Position of AIZ
Liquidity was $836 million as of March 31, 2026, which was $611 million higher than the company’s current targeted minimum level of $225 million.
Total assets decreased 1.4% to $35.7 billion as of March 31, 2026, from the end of 2025.
Total shareholders’ equity came in at $5.8 billion and remains unchanged year over year.
Assurant’s Share Repurchase and Dividend Update
In the first quarter, Assurant repurchased shares for $125 million. From April 1 through May 1, 2026, AIZ repurchased shares for $30 million. It now has $620 million remaining under the current repurchase authorization.
AIZ’s total dividends amounted to $44 million in the reported quarter.
Assurant Provides Guidance for 2026
Assurant expects adjusted EBITDA, excluding reportable catastrophes, to increase by low single digits.
Global Lifestyle adjusted EBITDA is expected to increase by approximately 10% with contributions from Connected Living and Global Automotive.
Global Housing adjusted EBITDA, excluding reportable catastrophes, is expected to decline only modestly.
Corporate and Other adjusted EBITDA loss is expected to approximate $140 million, reflecting organic investments in the Home Warranty business.
Assurant expects adjusted earnings, excluding reportable catastrophes, per diluted share growth rate to increase in the low single digits. AIZ also expects depreciation expense of approximately $180 million and an effective tax rate of approximately 19% to 21%, and continues to expect interest expense of approximately $113 million and amortization of purchased intangible assets of approximately $70 million.
AIZ Zacks Rank
Assurant currently carries a Zacks Rank #4 (Sell).
Everest Group, Ltd. (EG - Free Report) reported first-quarter 2026 operating income of $16.08 per share, which beat the Zacks Consensus Estimate by 14.6%. The bottom line increased significantly 149% year over year. Total operating revenues of about $4 billion declined 4.6% year over year. The top line missed the Zacks Consensus Estimate by 7.7%. Gross written premiums fell 18.5% year over year to $3.6 billion, reflecting an 8.5% decline in Reinsurance Treaty, partially offset by growth in Global Wholesale &Specialty. Our estimate was $4.8 billion.
Net investment income rose 15.5% year over year to $567 million, driven by a larger asset base and strong alternative investment returns. The figure exceeded our estimate of $491 million and the Zacks Consensus Estimate of $513 million.
Principal Financial Group, Inc. (PFG - Free Report) first-quarter 2026 operating net income of $2.07 per share beat the Zacks Consensus Estimate by 2.9%. The bottom line increased 14% year over year.
Total revenues decreased 4.5% year over year to $3.5 billion, missing the Zacks Consensus Estimate by 14.5%. Total expenses decreased 8.2% year over year to $3 billion due to lower benefits, claims and settlement expenses as well as operating expenses. As of March 31, 2026, Principal Financial’s AUM were $770.2 billion, included within assets under administration of $1.8 trillion.
Markel Group Inc. (MKL - Free Report) reported first-quarter 2026 adjusted operating income of $21.61 per share, which missed the Zacks Consensus Estimate by 18.1%. The bottom line deteriorated 16% year over year. Including one-time items, MKL reported a net loss of $18.90 per share in the first quarter of 2026. Total operating revenues of $3.5 billion, up 0.1% year over year, which missed the Zacks Consensus Estimate by 4%.
Earned premiums decreased 2% year over year to $2 billion in the quarter. The figure was lower than the Zacks Consensus Estimate of $2.1 billion. Net investment income increased 8% year over year to $255.9 million in the first quarter. The figure was lower than the Zacks Consensus Estimate of $262 million. However, this was more than offset by substantial net investment losses of $728 million. Total operating expenses of Markel Group decreased 0.6% year over year to $3.1 billion.
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AIZ Q1 Earnings & Revenues Top Estimates on Solid Investment Income
Key Takeaways
Assurant, Inc. (AIZ - Free Report) reported first-quarter 2026 net operating income of $5.95 per share, which beat the Zacks Consensus Estimate by 10.2%. The bottom line increased 76% year over year.
Quarterly results benefited from lower reportable catastrophes, solid performance in both Global Lifestyle and Global Housing, and earnings growth across both Connected Living and Global Automotive. It was partially offset by higher expenses.
Total revenues increased 11.4% year over year to $3.4 billion, driven by higher net earned premiums and fees, other income, and net investment income. The top line beat the Zacks Consensus Estimate by 4.4%.
Net investment income was up 27.9% year over year to $159.6 million. The figure was higher than our estimate of $133 million.
Total benefits, losses and expenses increased 6.7% to $3 billion, mainly due to higher underwriting, selling, general, and administrative expenses, and interest expense. The figure was higher than our estimate of $2.9 billion.
Assurant, Inc. Price, Consensus and EPS Surprise
Assurant, Inc. price-consensus-eps-surprise-chart | Assurant, Inc. Quote
Segmental Performance of AIZ
Revenues at Global Housing increased 11.5% year over year to $769.8 million, primarily driven by higher Total net earned premiums, fees, and other income and net investment income. The figure was higher than our estimate of $737.8 million.
Adjusted EBITDA doubled year over year to $236.7 million, primarily due to $132.3 million of lower pre-tax reportable catastrophes. The figure was higher than our estimate of $207.8 million.
Revenues at Global Lifestyle rose 11.3% year over year to $2.6 billion. The increase was primarily driven by higher net earned premiums, fees and other income and net investment income. The figure was higher than our estimate of $2.5 billion.
Adjusted EBITDA of $236.7 million increased 20% year over year, driven by double-digit earnings growth across both Connected Living and Global Automotive.
Connected Living results benefited from subscriber growth in mobile protection programs and trade-in performance. Global Automotive results increased from higher investment income, including the gain noted above, and improved loss experience. The figure was higher than our estimate of $169.8 million.
Adjusted EBITDA loss at Corporate & Other was $31.9 million, wider than the year-ago quarter’s adjusted EBITDA loss of $28 million, primarily due to organic investments to support our Home Warranty business. It was partially offset by higher investment income from higher assets.
Financial Position of AIZ
Liquidity was $836 million as of March 31, 2026, which was $611 million higher than the company’s current targeted minimum level of $225 million.
Total assets decreased 1.4% to $35.7 billion as of March 31, 2026, from the end of 2025.
Total shareholders’ equity came in at $5.8 billion and remains unchanged year over year.
Assurant’s Share Repurchase and Dividend Update
In the first quarter, Assurant repurchased shares for $125 million. From April 1 through May 1, 2026, AIZ repurchased shares for $30 million. It now has $620 million remaining under the current repurchase authorization.
AIZ’s total dividends amounted to $44 million in the reported quarter.
Assurant Provides Guidance for 2026
Assurant expects adjusted EBITDA, excluding reportable catastrophes, to increase by low single digits.
Global Lifestyle adjusted EBITDA is expected to increase by approximately 10% with contributions from Connected Living and Global Automotive.
Global Housing adjusted EBITDA, excluding reportable catastrophes, is expected to decline only modestly.
Corporate and Other adjusted EBITDA loss is expected to approximate $140 million, reflecting organic investments in the Home Warranty business.
Assurant expects adjusted earnings, excluding reportable catastrophes, per diluted share growth rate to increase in the low single digits.
AIZ also expects depreciation expense of approximately $180 million and an effective tax rate of approximately 19% to 21%, and continues to expect interest expense of approximately $113 million and amortization of purchased intangible assets of approximately $70 million.
AIZ Zacks Rank
Assurant currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Multi-Line Insurers
Everest Group, Ltd. (EG - Free Report) reported first-quarter 2026 operating income of $16.08 per share, which beat the Zacks Consensus Estimate by 14.6%. The bottom line increased significantly 149% year over year. Total operating revenues of about $4 billion declined 4.6% year over year. The top line missed the Zacks Consensus Estimate by 7.7%. Gross written premiums fell 18.5% year over year to $3.6 billion, reflecting an 8.5% decline in Reinsurance Treaty, partially offset by growth in Global Wholesale &Specialty. Our estimate was $4.8 billion.
Net investment income rose 15.5% year over year to $567 million, driven by a larger asset base and strong alternative investment returns. The figure exceeded our estimate of $491 million and the Zacks Consensus Estimate of $513 million.
Principal Financial Group, Inc. (PFG - Free Report) first-quarter 2026 operating net income of $2.07 per share beat the Zacks Consensus Estimate by 2.9%. The bottom line increased 14% year over year.
Total revenues decreased 4.5% year over year to $3.5 billion, missing the Zacks Consensus Estimate by 14.5%. Total expenses decreased 8.2% year over year to $3 billion due to lower benefits, claims and settlement expenses as well as operating expenses. As of March 31, 2026, Principal Financial’s AUM were $770.2 billion, included within assets under administration of $1.8 trillion.
Markel Group Inc. (MKL - Free Report) reported first-quarter 2026 adjusted operating income of $21.61 per share, which missed the Zacks Consensus Estimate by 18.1%. The bottom line deteriorated 16% year over year. Including one-time items, MKL reported a net loss of $18.90 per share in the first quarter of 2026. Total operating revenues of $3.5 billion, up 0.1% year over year, which missed the Zacks Consensus Estimate by 4%.
Earned premiums decreased 2% year over year to $2 billion in the quarter. The figure was lower than the Zacks Consensus Estimate of $2.1 billion. Net investment income increased 8% year over year to $255.9 million in the first quarter. The figure was lower than the Zacks Consensus Estimate of $262 million. However, this was more than offset by substantial net investment losses of $728 million. Total operating expenses of Markel Group decreased 0.6% year over year to $3.1 billion.