Company Performance - Assurant reported quarterly earnings of $3.39 per share, exceeding the Zacks Consensus Estimate of $2.84 per share, but down from $4.78 per share a year ago, representing an earnings surprise of 19.37% [1] - The company posted revenues of $3.09 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.21% and up from $2.89 billion year-over-year [2] - Over the last four quarters, Assurant has consistently surpassed consensus EPS and revenue estimates [2] Stock Outlook - Assurant shares have declined approximately 7.9% since the beginning of the year, compared to a 3.9% decline in the S&P 500 [3] - The company's current Zacks Rank is 3 (Hold), indicating expected performance in line with the market in the near future [6] - The consensus EPS estimate for the upcoming quarter is $4.62 on revenues of $3.09 billion, and for the current fiscal year, it is $16.01 on revenues of $12.5 billion [7] Industry Context - The Insurance - Multi line industry, to which Assurant belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Assurant's stock performance [5]

[First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Assurant reported strong Q1 2025 results, driven by Global Housing and improved Global Automotive, reaffirming its 2025 earnings outlook - The company is pleased with Q1 results, supported by strong performance in Global Housing and improved loss experience in Global Automotive, and is making progress against its strategic priorities[2](index=2&type=chunk) - Assurant reaffirmed its 2025 outlook for earnings growth, citing its strong financial and capital position, and its focus on long-term growth and shareholder value[3](index=3&type=chunk) Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | GAAP net income | $146.6 million | $236.4 million | (38)% | | Adjusted EBITDA | $282.2 million | $370.7 million | (24)% | | Adjusted EBITDA, ex. reportable catastrophes | $439.2 million | $383.7 million | 14% | | GAAP net income per diluted share | $2.83 | $4.47 | (37)% | | Adjusted earnings per diluted share | $3.39 | $4.78 | (29)% | | Adjusted earnings, ex. reportable catastrophes, per diluted share | $5.79 | $4.97 | 16% | [Consolidated Financial Results](index=2&type=section&id=First%20Quarter%202025%20Consolidated%20Results) Consolidated GAAP net income decreased 38% to **$146.6 million** due to increased catastrophes, but Adjusted EBITDA (ex-catastrophes) rose 14% to **$439.2 million** - GAAP net income decreased by **38%** to **$146.6 million**, mainly due to higher reportable catastrophes in Global Housing[7](index=7&type=chunk) - Excluding reportable catastrophes, Adjusted EBITDA increased **14%** (**16%** on a constant currency basis) to **$439.2 million**, driven by higher earnings in Global Housing[7](index=7&type=chunk) - Adjusted earnings, excluding reportable catastrophes, per diluted share increased **16%** to **$5.79**, benefiting from higher Global Housing earnings and share repurchases[7](index=7&type=chunk) - Total net earned premiums, fees, and other income from the operating segments grew **7%** to **$2.96 billion** (**9%** on a constant currency basis)[8](index=8&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) Segment performance was mixed: Global Housing's Adjusted EBITDA (ex-catastrophes) rose 31%, Global Lifestyle's Adjusted EBITDA fell 5%, and Corporate and Other's loss improved [Global Lifestyle](index=3&type=section&id=Global%20Lifestyle) Global Lifestyle's Adjusted EBITDA decreased 5% to **$197.8 million**, while net earned premiums and fees increased 5% due to mobile protection growth Global Lifestyle Q1 Financials ($ in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $197.8 million | $207.7 million | (5)% | | Net earned premiums, fees and other income | $2,306.6 million | $2,187.8 million | 5% | - Adjusted EBITDA decreased **5%** (**2%** on a constant currency basis); excluding a **$6.9 million** one-time client contract benefit in Q1 2024, Adjusted EBITDA grew modestly on a constant currency basis[11](index=11&type=chunk) - Net earned premiums and fees increased **5%** (**7%** constant currency), primarily driven by Connected Living from growth in global mobile device protection and a new financial services program[11](index=11&type=chunk) [Global Housing](index=3&type=section&id=Global%20Housing) Global Housing's Adjusted EBITDA fell 42% to **$112.4 million** due to catastrophes, but excluding them, it surged 31% to **$269.1 million** from top-line growth Global Housing Q1 Financials ($ in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $112.4 million | $192.5 million | (42)% | | Reportable catastrophes | $156.7 million | $12.9 million | N/A | | Adjusted EBITDA, ex. reportable catastrophes | $269.1 million | $205.4 million | 31% | | Net earned premiums, fees and other income | $656.8 million | $572.2 million | 15% | - The decrease in Adjusted EBITDA was primarily due to **$143.8 million** of higher pre-tax reportable catastrophes, with about **$125 million** from California wildfires[12](index=12&type=chunk) - Excluding reportable catastrophes, Adjusted EBITDA increased **31%**, driven by top-line growth in Homeowners and favorable non-catastrophe loss experience[12](index=12&type=chunk) [Corporate and Other](index=4&type=section&id=Corporate%20and%20Other) Corporate and Other's Adjusted EBITDA loss improved by **5%** to **$(28.0) million** in Q1 2025, primarily due to lower third-party expenses Corporate and Other Q1 Financials ($ in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $(28.0) million | $(29.5) million | 5% | - The improved Adjusted EBITDA loss was primarily driven by lower third-party expenses[13](index=13&type=chunk) [Capital Management and Liquidity](index=4&type=section&id=Holding%20Company%20Liquidity%20Position) The holding company maintained strong liquidity of **$501 million** as of March 31, 2025, returning **$103 million** to shareholders in Q1 2025 - Holding company liquidity totaled **$501 million** as of March 31, 2025, which is **$276 million** above the company's minimum target of **$225 million**[14](index=14&type=chunk) - In Q1 2025, the company returned a total of **$103 million** to shareholders, consisting of **$62 million** in share repurchases (**299 thousand shares**) and **$41 million** in common stock dividends[14](index=14&type=chunk) - **$287 million** remains under the current share repurchase authorization as of May 2, 2025[14](index=14&type=chunk) [2025 Full-Year Outlook](index=4&type=section&id=2025%20Company%20Outlook) Assurant reaffirmed its 2025 outlook, expecting modest growth in Adjusted EBITDA and earnings per diluted share (ex-catastrophes) across its key segments 2025 Outlook vs. 2024 Actuals | Metric | 2024 Actual | 2025 Outlook | | :--- | :--- | :--- | | Adjusted EBITDA, ex. reportable catastrophes | $1,569 million | Modest growth | | Adjusted earnings, ex. reportable catastrophes, per diluted share | $20.35 | Modest growth | - Global Lifestyle Adjusted EBITDA is expected to increase from growth in Connected Living and Global Automotive[16](index=16&type=chunk) - Global Housing Adjusted EBITDA, excluding reportable catastrophes, is now expected to increase[16](index=16&type=chunk) - Corporate and Other Adjusted EBITDA loss is expected to be approximately **$115 million**[16](index=16&type=chunk) [Supplementary Information](index=5&type=section&id=Supplementary%20Information) This section provides context for financial results, including earnings call details, company overview, forward-looking statements, non-GAAP definitions, and consolidated financial statements [Non-GAAP Financial Measures Reconciliation](index=7&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP measures like Adjusted EBITDA and Adjusted Earnings per Diluted Share, offering a clearer view of operational performance - Adjusted EBITDA is defined as net income excluding items like net realized investment gains/losses, interest, taxes, depreciation, and amortization of purchased intangible assets to better show ongoing operational performance[24](index=24&type=chunk) - Adjusted Earnings, Excluding Reportable Catastrophes, per Diluted Share is used as an important measure of stockholder value, excluding volatile items to facilitate period-over-period comparisons[28](index=28&type=chunk) Reconciliation of GAAP Net Income to Adjusted EBITDA ($ in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP net income | $146.6 million | $236.4 million | | Adjustments (Interest, Taxes, D&A, etc.) | $135.6 million | $89.3 million | | Adjusted EBITDA | $282.2 million | $370.7 million | | Reportable catastrophes | $157.0 million | $13.0 million | | **Adjusted EBITDA, ex. reportable catastrophes** | **$439.2 million** | **$383.7 million** | [Consolidated Financial Statements](index=12&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show a decrease in Q1 2025 net income to **$146.6 million** and a stable balance sheet with **$34,988.4 million** in total assets Consolidated Statement of Operations Highlights ($ in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenues | $3,074.0 million | $2,880.1 million | | Total benefits, losses and expenses | $2,890.3 million | $2,587.2 million | | Net income | $146.6 million | $236.4 million | | Diluted net income per share | $2.83 | $4.47 | Consolidated Balance Sheet Highlights ($ in millions) | Metric | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total assets | $34,988.4 million | $35,020.6 million | | Total liabilities | $29,754.2 million | $29,913.9 million | | Total equity | $5,234.2 million | $5,106.7 million |

Assurant, Inc. (AIZ) is expected to register an improvement in its top line but a decline in its bottom line when it reports first-quarter 2025 results on May 6, after the closing bell.The Zacks Consensus Estimate for AIZ’s first-quarter revenues is pegged at $3.05 billion, indicating 5.6% growth from the year-ago reported figure.The consensus estimate for earnings is pegged at $3.00 per share. The Zacks Consensus Estimate for AIZ’s first-quarter earnings has moved up 2.5% in the past 30 days. The estimate ...

Company Overview - Assurant (AIZ) is expected to report a year-over-year decline in earnings of 37.2%, with projected earnings of $3 per share for the quarter ended March 2025 [3][12] - Revenue is anticipated to increase by 5.7% year-over-year, reaching $3.05 billion [3] Earnings Expectations - The consensus EPS estimate has been revised down by 0.77% over the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Assurant is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.53%, suggesting a likelihood of beating the consensus EPS estimate [10][11] Historical Performance - Assurant has a strong track record, having beaten consensus EPS estimates in the last four quarters, with a notable surprise of +10.62% in the most recent quarter [12][13] Industry Context - Corebridge Financial (CRBG), another player in the insurance industry, is expected to report earnings of $1.15 per share, reflecting a year-over-year increase of 4.6%, but with a revenue decline of 10.9% [17] - Corebridge's consensus EPS estimate has been revised down by 2.2%, resulting in a negative Earnings ESP of -0.38% and a Zacks Rank of 4 (Sell), making it difficult to predict an earnings beat [18]

Assurant (AIZ) shares soared 7.5% in the last trading session to close at $193.24. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.9% loss over the past four weeks.AIZ's shares surged in response to the broader market rally after President Trump announced a 90-day pause of reciprocal tariffs for most countries.This insurer is expected to post quarterly earnings of $3 per share in its upcoming report, which represents a year-ov ...

Assurant, Inc. (AIZ) shares are trading at a discount compared to the Zacks Multi-line Insurance industry. Its forward price-to-book value of 2.14X is lower than the industry average of 2.52X, the Finance sector’s 4.06X and the Zacks S&P 500 Composite’s 7.98X. The multi-line insurer has a Value Score of B.The insurer has a market capitalization of $10.79 billion. The average volume of shares traded in the last three months was 0.4 million. The insurer has a solid track record of beating earnings estimates i ...

It has been about a month since the last earnings report for Assurant (AIZ) . Shares have lost about 2.8% in that time frame, outperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Assurant due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It turns out, ...

Group 1 - Assurant Inc. is an insurance company that focuses on capital-light market segments with recurring revenue streams, such as mobile device insurance, auto renters, and mortgages, which are considered less risky compared to other insurance lines [1] - The company has demonstrated long-term stability and growth potential due to its focus on less volatile insurance products [1]

Financial Performance - Assurant reported total assets of $35.02 billion and a debt to total capital ratio of 29.0% as of December 31, 2024[19]. - In 2024, net earned premiums, fees, and other income for the Global Lifestyle segment reached $8.97 billion, up from $8.56 billion in 2023, representing a growth of 4.8%[35]. - The Connected Living segment generated $4.81 billion in net earned premiums, fees, and other income in 2024, an increase of 9.8% from $4.38 billion in 2023[35]. - The Global Automotive segment reported $4.16 billion in net earned premiums, fees, and other income in 2024, a slight decrease of 0.6% from $4.18 billion in 2023[35]. - The total net earned premiums, fees, and other income for Global Housing in 2024 is projected to be $2,457.0 million, up from $2,142.9 million in 2023, reflecting a growth of approximately 14.7%[54]. - Segment Adjusted EBITDA for Global Housing increased to $671.2 million in 2024 from $574.2 million in 2023, representing a growth of about 16.9%[54]. - Assurant returned $455.8 million to shareholders through share repurchases and dividends in 2024[27]. Market Trends and Opportunities - The mobile protection market is expanding, with growth opportunities in bundled protection products and enhanced customer experiences through digital solutions and AI[44]. - U.S. new vehicle sales have improved slightly in 2023, driven by increased vehicle availability and OEM incentives[47]. - The U.S. renters insurance market is growing, with opportunities to increase market share through investments in digital platforms and expanded offerings[67]. - The company aims to grow its portfolio by strengthening partnerships and investing in technology, including digital and AI solutions[22]. Innovation and Technology - The company opened its Innovation and Device Care Center in October 2024 to enhance mobile device lifecycle solutions and leverage automation and AI[26]. - Assurant is investing in technology, including artificial intelligence, to enhance customer experience and operational efficiency, with ongoing expenses related to digital capabilities and research and development[169]. Employee and Talent Management - As of December 31, 2024, Assurant had approximately 14,200 employees, with 75% located in North America and 60% of the global workforce being women[75]. - The global turnover rate for 2024 was 13%, with a 5% turnover for managerial roles and 17% for frontline employees, reflecting a year-over-year improvement of 2 and 1 percentage points respectively[76]. - Assurant's talent strategy includes establishing Global Capability Centers to leverage global scale and access to top talent, enhancing client growth and innovation[77]. - The company is committed to a hybrid work model, with a majority of employees working virtually, supporting both business and talent strategies[89]. - Assurant invests in employee learning and development through various initiatives, including access to industry-leading content and a mentorship program[90]. Regulatory and Compliance - The company is subject to extensive federal, state, and international regulations, which vary by jurisdiction[105]. - The company is licensed to sell insurance in all 50 states, Puerto Rico, and the District of Columbia, ensuring compliance with local regulations[108]. - The National Association of Insurance Commissioners (NAIC) has established risk-based capital (RBC) standards to assess insurer solvency, which could change in the future[110]. - The SEC adopted new rules in July 2023 requiring public companies to disclose material cybersecurity incidents and risk management strategies[130]. - The NAIC has adopted a model bulletin regarding the use of artificial intelligence by insurers, with approximately 20 states having adopted it and further adoption expected[131]. Risk Management - The company’s risk management framework is reviewed annually to align with business operations and changes in laws and regulations[137]. - Significant risks include reliance on a few major clients, which could adversely affect revenues and profits if relationships deteriorate or contracts are not renewed on favorable terms[156]. - The company faces macroeconomic risks that could materially impact its financial condition and results of operations[157]. - Financial risks include potential declines in mobile device values and regulatory compliance issues that could affect sales[159]. - The company utilizes a three lines of defense model for risk management, with the first line being business operations, the second line being Global Risk Management and Compliance, and the third line being Internal Audit[147]. Competitive Landscape - The company faces competition from various sectors, including insurance, warranty, financial services, and technology, requiring continuous adaptation to market changes[73]. - The company faces significant competitive pressures from various sectors, including insurance, financial services, and technology, which could adversely affect revenues and profits[166]. - There is a risk that clients may obtain more favorable terms from competitors, impacting the persistency of policies and overall revenues[167]. Environmental and Climate Risks - Catastrophe and non-catastrophe losses, influenced by climate change and inflation, could significantly reduce profitability and impact financial condition[191]. - Increased unpredictability of weather-related events may lead to higher claims and catastrophe losses, adversely affecting results of operations[192]. - General inflationary pressures and supply chain disruptions have increased costs of claims, particularly in Global Housing and Global Automotive businesses[198]. Financial Health and Investments - The company reported a $0.8 million unfavorable impact to net income in 2024 due to foreign exchange-related losses[205]. - A downgrade of the company's senior debt credit ratings could adversely affect liquidity, increase borrowing costs, and reduce demand for debt securities[204]. - The company is subject to interest rate risk, with fluctuations potentially leading to unrealized losses in its investment portfolio[213]. - The company's investment portfolio is exposed to credit risk, particularly from corporate bonds and other fixed-income securities, which could lead to realized investment losses[215].

Core Viewpoint - Assurant, Inc. (AIZ) has shown strong performance with a 14.9% increase in share price over the past year, outperforming the industry growth of 11.1% and the Finance sector's return of 25.6% [1] Performance Metrics - AIZ's current stock price is $200.14, trading above its 200-day simple moving average (SMA) of $192.78, indicating solid upward momentum [3] - The average volume of shares traded in the last three months was 0.3 million, with a market capitalization of $10.26 billion [1] Growth Projections - The Zacks Consensus Estimate for AIZ's 2025 earnings per share indicates a year-over-year increase of 1.4%, with revenues projected at $12.40 billion, reflecting a 3.7% improvement [4] - For 2026, earnings per share and revenues are expected to increase by 13.2% and 3.8%, respectively, compared to 2024 estimates [4] Earnings History - AIZ has experienced earnings growth of 16.6% over the past five years, surpassing the industry average of 9.7% [5] - The company has a strong earnings surprise history, exceeding earnings estimates in each of the last four quarters by an average of 17.03% [7] Valuation Metrics - AIZ is trading at a forward 12-month price-to-book ratio of 2.01X, which is lower than the industry average of 2.38X, indicating a compelling investment opportunity [8] - The company has a Value Score of A, suggesting attractive valuations [8] Return on Capital - AIZ's return on equity in the trailing 12 months was 17.2%, outperforming the industry average of 15.1% [11] - The return on invested capital (ROIC) was 11.2%, significantly higher than the industry average of 2.3%, reflecting efficient capital utilization [12] Strategic Focus - Assurant is focusing on growing fee-based capital-light businesses, which currently account for 52% of segmental revenues, with expectations for double-digit growth in the long term [13] - The company is ramping up its Connected Living platform, aiming to double margins to 8% over the long term [14] Capital Management - Assurant's board approved an 11% increase in cash dividends, marking 20 consecutive quarters of dividend hikes [15] - The company has $351 million remaining under its current share repurchase authorization, with expected repurchases for 2025 ranging between $200 million and $300 million [15] Overall Assessment - AIZ's strong performance in the Global Lifestyle business, growth in fee-based capital-light sectors, solid capital management, and favorable growth estimates present significant growth opportunities [16] - The company has a VGM Score of B, indicating attractive value, growth, and momentum compared to peers [17]