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Assurant (AIZ) Expands Technology Portfolio With BuyBack Booth

Assurant Inc. AIZ has entered into a strategic partnership with a 'Robot-as-a-Service' company, A La Carte Media Inc. dba as BuyBack Booth. Assurant, a Zacks Rank #3 (Hold) company, is a global provider of risk management solutions in the housing and lifestyle markets. It also agreed to invest in BuyBack Booth.

The partnership will help Assurant expand leading device trade-in technology portfolio. It will also add BuyBack Booth’s state-of-the-art kiosks that would provide enhanced service for retail mobile device trade-in programs offered by wireless carriers and retailers. BuyBack Booth is a provider of an innovative and scalable hardware solution that uses AI for the seamless assessment of a mobile device's condition and trade-in value.

Assurant is a global leader in mobile device trade-in and upgrade and seeks to invest continuously to enhance technology and capabilities. The investment in BuyBack Booth is in tandem with its growth strategy.

Assurant estimates Global Lifestyle to achieve a market-leading position. It expects incremental spending related to the development of new products, such as Connected Home offerings and increased investments for new client implementations. In January 2022, this insurer expanded its partnership with the Telefonica Group. This deal is expected to boost the trade-in platform of Assurant, which in turn will support its Connected Living business. This partnership is expected to expand the range of products and services that Assurant offers and thus boost this multi-line insurer’s capability to offer an enhanced customer experience, and innovate and promote sustainable practices.

Assurant remains focused on ramping up the Connected Living platform, deploying innovative products and services and adding new partnerships with leading brands like Comcast, Apple and KDDI in Japan. These initiatives are expected to double the margins in Connected Living to 8% over the long term.

Assurant remains focused on building higher growth fee-based and capital-light businesses, thus continuing to strengthen Global Automotive and Connected Living offerings. Management estimates the contribution to continue to grow in double digits over the longer term.

Shares of AIZ have gained 4.1% year to date against the industry’s decline of 8%. A well-performing Global Lifestyle business, growth in fee-based capital-light businesses and solid capital management should help shares trend higher.

Zacks Investment Research
Zacks Investment Research


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Stocks to Consider

Some better-ranked stocks from the multi-line insurance industry are James River Group Holdings, Ltd. JRVR, Radian Group Inc. RDN and Old Republic International Corporation ORI. While James River Group and Radian Group sport a Zacks Rank #1 (Strong Buy), Old Republic International carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for James River Group’s 2022 and 2023 earnings implies 137% and 15.3% year-over-year growth, respectively.

The Zacks Consensus Estimate for JRVR’s 2022 and 2023 earnings has moved 2.6% and 4.6% north, respectively, in the past 60 days.  Year to date, the insurer has declined 16.7%.

Radian Group’s earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 29.51%.

The Zacks Consensus Estimate for RDN’s 2022 and 2023 earnings has moved 16.1% and 9.7% north, respectively, in the past 30 days.  Year to date, the insurer has declined 3.2%.

Old Republic International’s earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 15.1%.

The Zacks Consensus Estimate for ORI’s 2022 earnings has moved 4.2% north in the past 60 days. Year to date, the insurer has declined 10.3%.



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