tiprankstipranks
Trending News
More News >
Assurant (AIZ)
NYSE:AIZ

Assurant (AIZ) AI Stock Analysis

Compare
524 Followers

Top Page

AI

Assurant

(NYSE:AIZ)

Rating:74Outperform
Price Target:
$215.00
â–²(12.86%Upside)
Assurant's overall stock score reflects strong financial performance and positive earnings call highlights, particularly in its Global Housing segment and strategic partnerships. However, technical analysis indicates bearish momentum, and valuation metrics suggest the stock is fairly valued. Challenges in the Global Lifestyle segment and potential tariff impacts also weigh on the score.
Positive Factors
Global Housing Performance
Global Housing continues to show strength despite tough comparisons given favorable market conditions and loss trends.
Partnerships and Expansion
Investments in capabilities and its leadership position in the market helped it add several new meaningful partners and programs recently, including with Verizon and Chase.
Negative Factors
Expense Challenges
While growth in Global Lifestyle was better than expectations, expenses were elevated, resulting in adjusted EBITDA of $192 million, below the consensus expectation of $209 million.
Foreign Exchange Impact
Foreign exchange is expected to be a couple of points headwind to EPS growth in the coming year.

Assurant (AIZ) vs. SPDR S&P 500 ETF (SPY)

Assurant Business Overview & Revenue Model

Company DescriptionAssurant, Inc., together with its subsidiaries, provides lifestyle and housing solutions that support, protect, and connect consumer purchases in North America, Latin America, Europe, and the Asia Pacific. The company operates through two segments: Global Lifestyle and Global Housing. The Global Lifestyle segment offers mobile device solutions, and extended service products and related services for mobile devices, consumer electronics, and appliances; vehicle protection and related services; and credit protection and other insurance products. The Global Housing segment provides lender-placed homeowners insurance, manufactured housing, and flood insurance; and renters insurance and related products, as well as voluntary manufactured housing insurance, voluntary homeowners insurance, and other specialty products. The company was formerly known as Fortis, Inc. and changed its name to Assurant, Inc. in February 2004. Assurant, Inc. was founded in 1892 and is headquartered in New York, New York.
How the Company Makes MoneyAssurant makes money through the sale of insurance products and related services, which constitute its primary revenue streams. A significant portion of its revenue is derived from premiums collected on insurance policies, such as mobile device protection plans and extended service contracts for electronics and appliances. Additionally, Assurant generates income from investment returns on its insurance float, which involves investing the premiums collected until claims are paid out. The company also has strategic partnerships with major retailers, financial institutions, and mobile carriers, which help in distributing its products and expanding its customer base. These partnerships play a crucial role in driving sales and enhancing market penetration for Assurant's offerings.

Assurant Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: -3.32%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a strong start to 2025 with significant growth in adjusted EBITDA and EPS. The company showcased impressive achievements in the Global Housing segment and strategic partnerships, especially with Verizon. However, there were challenges in the Global Lifestyle segment due to currency impacts and concerns about tariffs affecting costs. The positive aspects of growth and strong financial metrics were balanced by these challenges, leading to a mixed sentiment.
Q1-2025 Updates
Positive Updates
Strong Financial Performance
14% growth in adjusted EBITDA and 16% growth in adjusted earnings per share, both excluding reportable catastrophes, for the first quarter of 2025.
Global Housing Segment Success
17% top-line growth within homeowners due to the addition of 70,000 lender placed policies and a combined ratio of 90% despite elevated catastrophes.
Significant Partnerships and New Products
Partnership with Verizon to launch a new mobile device protection plan, and new product launches in Global Auto, including Assurant Vehicle Care Technology Plus.
Resilience and Growth in Renters
Added a new renters book with over 250,000 policies, contributing to consistent double-digit growth in the Property Management Company channel.
Effective Catastrophe Management
Successfully placed 2025 catastrophe reinsurance program with $1.8 billion in loss coverage and maintained low cat exposure relative to peers.
Negative Updates
Decline in Global Lifestyle Earnings
First quarter adjusted EBITDA for Global Lifestyle was down 5% compared to last year, with a $6 million impact from unfavorable foreign exchange.
Challenges in Connected Living
Earnings in Connected Living declined by 6%, partially offset by a new card benefits program but impacted by lower results in domestic mobile.
Increased Tariff Concerns
Guidance now assumes impacts from tariffs, with potential higher claims costs in Auto and Housing due to increased parts and material costs.
Company Guidance
During Assurant's first quarter 2025 conference call, the company reported a strong start to the year with significant growth metrics. Adjusted EBITDA rose by 14% and adjusted earnings per share increased by 16%, both excluding reportable catastrophes. The Global Housing segment saw a remarkable 17% top-line growth, primarily driven by the addition of 70,000 lender-placed policies, leading to a combined ratio of 90%. Assurant's strategic investments in new programs and partnerships supported these results, including a notable collaboration with Verizon for a mobile device protection plan. The company also highlighted its robust capital position, enabling continued shareholder returns, with over $100 million returned in the first quarter, and affirmed its outlook for modest growth in adjusted EBITDA and EPS for the full year 2025, despite potential macroeconomic challenges like tariffs.

Assurant Financial Statement Overview

Summary
Assurant presents a strong financial position with consistent revenue and profit growth, stable leverage, and robust cash flow generation. The company's profitability and efficient cash management are strengths, although there is a slight decline in EBIT margin. Overall, Assurant appears financially healthy with good growth trajectories and effective management of its resources.
Income Statement
82
Very Positive
Assurant's TTM (Trailing-Twelve-Months) results demonstrate strong gross profit and net profit margins at 75.78% and 5.55%, respectively. There is a steady revenue growth trend with a 7.54% increase from 2023 to 2024 and a further 1.63% rise into the TTM. Despite a decline in EBIT margin from 7.81% in 2024 to 6.78% in TTM, EBITDA margin remains robust at 9.56%. Overall, the income statement reflects solid profitability and consistent revenue growth.
Balance Sheet
75
Positive
Assurant maintains a healthy balance sheet with a debt-to-equity ratio of 0.40, indicating a moderate level of leverage. The equity ratio is stable at 14.96%, reflecting a solid foundation of equity relative to total assets. Return on equity is healthy at 12.81% in the TTM, showcasing effective profit generation relative to shareholder investment. The balance sheet reflects financial stability with manageable debt levels.
Cash Flow
78
Positive
The cash flow statement shows a robust operating cash flow to net income ratio of 2.45 in the TTM, indicating strong cash generation relative to reported profits. Free cash flow has grown significantly by 41.41% from 2023 to 2024, and the free cash flow to net income ratio is impressive at 2.34, indicating effective cash management. Overall, the cash flow analysis reflects strong liquidity and effective cash utilization.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue12.07B11.88B11.13B10.19B10.19B9.59B
Gross Profit9.15B9.11B8.61B10.19B10.19B9.59B
EBITDA1.15B1.26B1.12B639.00M1.05B20.00B
Net Income670.40M760.20M642.50M276.60M613.50M440.80M
Balance Sheet
Total Assets34.99B35.02B33.64B33.12B33.91B44.65B
Cash, Cash Equivalents and Short-Term Investments4.12B4.19B8.54B7.98B9.50B16.01B
Total Debt2.08B2.08B2.08B2.13B2.20B2.25B
Total Liabilities29.75B29.91B28.83B28.90B28.42B38.70B
Stockholders Equity5.23B5.11B4.81B4.23B5.49B5.95B
Cash Flow
Free Cash Flow1.57B1.11B935.60M410.60M594.30M1.22B
Operating Cash Flow1.64B1.33B1.14B596.90M781.70M1.34B
Investing Cash Flow-751.20M-657.80M-637.70M-262.10M157.60M-735.20M
Financing Cash Flow-500.00M-477.50M-403.90M-818.40M-1.09B-264.80M

Assurant Technical Analysis

Technical Analysis Sentiment
Negative
Last Price190.50
Price Trends
50DMA
197.06
Negative
100DMA
198.98
Negative
200DMA
202.48
Negative
Market Momentum
MACD
-1.79
Positive
RSI
39.77
Neutral
STOCH
10.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIZ, the sentiment is Negative. The current price of 190.5 is below the 20-day moving average (MA) of 195.88, below the 50-day MA of 197.06, and below the 200-day MA of 202.48, indicating a bearish trend. The MACD of -1.79 indicates Positive momentum. The RSI at 39.77 is Neutral, neither overbought nor oversold. The STOCH value of 10.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AIZ.

Assurant Risk Analysis

Assurant disclosed 41 risk factors in its most recent earnings report. Assurant reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Assurant Peers Comparison

Overall Rating
UnderperformOutperform
Sector (73)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ACACT
84
Outperform
$5.58B8.3614.09%2.26%4.33%10.21%
MTMTG
79
Outperform
$6.51B9.1215.12%1.91%4.64%15.36%
79
Outperform
$6.04B8.7213.29%2.08%9.87%3.41%
RDRDN
78
Outperform
$4.79B9.0713.22%2.86%2.95%4.08%
AIAIZ
74
Outperform
$9.65B14.8313.20%1.68%6.18%-10.34%
73
Outperform
15.09B17.7416.30%3.84%8.25%25.93%
FAFAF
68
Neutral
$6.44B41.283.23%3.60%0.96%-27.04%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AIZ
Assurant
190.50
26.43
16.11%
FAF
First American Financial
59.96
5.85
10.81%
MTG
MGIC Investment
26.58
4.74
21.70%
RDN
Radian Group
35.01
3.19
10.03%
ESNT
Essent Group
58.71
2.31
4.10%
ACT
Enact Holdings
36.28
5.66
18.48%

Assurant Corporate Events

Private Placements and Financing
Assurant Secures New $500M Credit Facility Agreement
Neutral
Jun 18, 2025

On June 18, 2025, Assurant, Inc. entered into a third amended and restated credit agreement with certain lenders, establishing a $500 million five-year senior unsecured revolving credit facility. This new facility replaces a previous one set to expire in December 2026, and it will now expire in June 2030. The facility allows for revolving loans and the issuance of letters of credit, with a sublimit of $50 million for letters of credit, and can be increased to $750 million under certain conditions. This move is aimed at supporting general corporate purposes and includes customary covenants and events of default, with fees and expenses paid by the company in connection with obtaining the facility.

The most recent analyst rating on (AIZ) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on Assurant stock, see the AIZ Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Assurant Stockholders Approve Charter Amendments at Annual Meeting
Neutral
May 23, 2025

On May 21, 2025, Assurant, Inc. held its annual meeting where stockholders approved amendments to the company’s charter, enabling stockholders to call special meetings, limiting officer liability, and modernizing the charter. These changes, effective upon filing, aim to enhance corporate governance and align with Delaware law. Additionally, the company eliminated its 6.50% Series D Mandatory Convertible Preferred Stock, converting all shares to common stock. Stockholders also voted on several proposals, including electing directors and approving executive compensation, with most proposals passing except for a stockholder proposal to allow shareholders to call special meetings.

The most recent analyst rating on (AIZ) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Assurant stock, see the AIZ Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025