We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AIZ Trading at a Discount to Industry at 2.19X: Time to Buy or Hold?
Read MoreHide Full Article
Key Takeaways
AIZ sees double-digit growth in fee-based capital-light businesses, now 52% of segment revenue.
Assurant expects 2026 Global Lifestyle adjusted EBITDA to rise about 10% on key segment growth.
AIZ plans up to $350M in 2026 share repurchases despite catastrophe and expense pressures.
Shares of Assurant, Inc. (AIZ - Free Report) are trading at a discount compared with the industry. Its trailing 12-month price-to-book value of 2.19X is lower than the industry average of 2.55X, the finance sector's 4.28X, and the Zacks S&P 500 composite’s 8.08X.
The insurer has a market capitalization of $12.7 billion. The average volume of shares traded in the past three months was 0.4 million.
Image Source: Zacks Investment Research
Shares of other insurers like American International Group (AIG - Free Report) , Aegon Ltd (AEG - Free Report) and Allianz SE (ALIZY - Free Report) are trading at a discount to the industry average.
AIZ’s Price Performance
AIZ shares have gained 26.9% in the past year against the Multi-line Insurance industry’s decline of 0.9%. The Finance sector has declined, while the Zacks S&P 500 composite has gained in the same time frame.
Image Source: Zacks Investment Research
Projections for AIZ
The Zacks Consensus Estimate for Assurant’s 2026 earnings per share (EPS) is pinned at $21.01, indicating a year-over-year increase of 6.3%. The consensus estimate for revenues is pegged at $13.82 billion, implying a year-over-year improvement of 7.6%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 8% and 7%, respectively, from the corresponding 2026 estimates.
Assurant’s Favorable Return on Capital
Return on equity in the trailing 12 months was 20.32%, better than the industry average of 16.17%. This highlights the company’s efficiency in utilizing shareholders’ funds.
ROIC in the trailing 12 months was 13.34%, better than the industry average of 2.19%, reflecting AIZ’s efficiency in utilizing funds to generate income.
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 will continue to grow 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.
Thus, for 2026, Global Lifestyle adjusted EBITDA is projected to increase approximately 10%, 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 expand.
The Housing business remains a key earnings pillar, driven by growth in lender-placed insurance, renters solutions, and favorable industry conditions supporting policy expansion. For 2026, Global Housing adjusted EBITDA, excluding reportable catastrophes, is projected to decline modestly.
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.
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.
AIZ has a solid capital management policy. It expects to deploy capital to fund investments, mergers and acquisitions. AIZ expects 2026 repurchases to be in the range of $250-$350 million. This represents an increase from last year's range of $200 million to $300 million.
Risks for AIZ
AIZ has been experiencing an increase in policyholder benefits, underwriting, general and administrative expenses and interest expense.
AIZ’s insurance operations remain exposed to claims arising from catastrophes and non-catastrophes, particularly in homeowners insurance, renters insurance and flood offerings.
Net investment income continues to decrease primarily due to reduced partnership income and lower yields on cash and short-term investments. Moreover, rate cuts by the Federal Reserve remain a concern for insurers.
Conclusion
AIZ has witnessed broad-based growth, improving margins, disciplined capital returns, and multiple new growth levers across Lifestyle, Housing, and Home Warranty, which favor its results. However, exposure to catastrophe risk, rising expenses, and decreasing investment income are the main concerns.
Higher return on capital, favorable growth estimates and attractive valuations should continue to benefit the insurer over the long term. It is, therefore, wise to retain this Zacks Rank #3 (Hold) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
AIZ Trading at a Discount to Industry at 2.19X: Time to Buy or Hold?
Key Takeaways
Shares of Assurant, Inc. (AIZ - Free Report) are trading at a discount compared with the industry. Its trailing 12-month price-to-book value of 2.19X is lower than the industry average of 2.55X, the finance sector's 4.28X, and the Zacks S&P 500 composite’s 8.08X.
The insurer has a market capitalization of $12.7 billion. The average volume of shares traded in the past three months was 0.4 million.
Image Source: Zacks Investment Research
Shares of other insurers like American International Group (AIG - Free Report) , Aegon Ltd (AEG - Free Report) and Allianz SE (ALIZY - Free Report) are trading at a discount to the industry average.
AIZ’s Price Performance
AIZ shares have gained 26.9% in the past year against the Multi-line Insurance industry’s decline of 0.9%. The Finance sector has declined, while the Zacks S&P 500 composite has gained in the same time frame.
Image Source: Zacks Investment Research
Projections for AIZ
The Zacks Consensus Estimate for Assurant’s 2026 earnings per share (EPS) is pinned at $21.01, indicating a year-over-year increase of 6.3%. The consensus estimate for revenues is pegged at $13.82 billion, implying a year-over-year improvement of 7.6%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 8% and 7%, respectively, from the corresponding 2026 estimates.
Assurant’s Favorable Return on Capital
Return on equity in the trailing 12 months was 20.32%, better than the industry average of 16.17%. This highlights the company’s efficiency in utilizing shareholders’ funds.
ROIC in the trailing 12 months was 13.34%, better than the industry average of 2.19%, reflecting AIZ’s efficiency in utilizing funds to generate income.
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 will continue to grow 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.
Thus, for 2026, Global Lifestyle adjusted EBITDA is projected to increase approximately 10%, 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 expand.
The Housing business remains a key earnings pillar, driven by growth in lender-placed insurance, renters solutions, and favorable industry conditions supporting policy expansion. For 2026, Global Housing adjusted EBITDA, excluding reportable catastrophes, is projected to decline modestly.
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.
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.
AIZ has a solid capital management policy. It expects to deploy capital to fund investments, mergers and acquisitions. AIZ expects 2026 repurchases to be in the range of $250-$350 million. This represents an increase from last year's range of $200 million to $300 million.
Risks for AIZ
AIZ has been experiencing an increase in policyholder benefits, underwriting, general and administrative expenses and interest expense.
AIZ’s insurance operations remain exposed to claims arising from catastrophes and non-catastrophes, particularly in homeowners insurance, renters insurance and flood offerings.
Net investment income continues to decrease primarily due to reduced partnership income and lower yields on cash and short-term investments. Moreover, rate cuts by the Federal Reserve remain a concern for insurers.
Conclusion
AIZ has witnessed broad-based growth, improving margins, disciplined capital returns, and multiple new growth levers across Lifestyle, Housing, and Home Warranty, which favor its results. However, exposure to catastrophe risk, rising expenses, and decreasing investment income are the main concerns.
Higher return on capital, favorable growth estimates and attractive valuations should continue to benefit the insurer over the long term. It is, therefore, wise to retain this Zacks Rank #3 (Hold) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.