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Assurant, Inc. AIZ is slated to report second-quarter 2022 earnings on Aug 2, after the closing bell. AIZ delivered an earnings surprise in each of the last four quarters, the average being 18.31%.
Factors to Note
Revenues are likely to have benefited from improved net earned premiums, higher fees and other income and net investment income. The Zacks Consensus Estimate for second-quarter revenues is pegged at $2.6 billion, which suggests growth of 5% from the year-ago quarter.
Net earned premiums are likely to have benefited from continued organic growth from strong U.S. sales in the Global Automotive business across all distribution channels, domestic mobile subscriber growth within cable operator distribution channel, higher average insured values and premium rates in the Lender-placed Insurance business and continued growth from renters insurance in Multifamily Housing business.
The consensus mark for net earned premiums and other considerations stands at $2.2 billion, which indicates an improvement of 4.6% from the prior-year reported figure. Meanwhile, the same for fees and other income is pegged at $327 million, suggesting growth of 9.4% from the year-ago quarter.
Net investment income in the to-be-reported quarter is likely to have benefited from higher invested assets in fixed maturity securities and commercial mortgage loans on real estate and increases in other investments related to higher sales and valuations.
The Global Lifestyle segment is expected to have benefited from favorable loss experience and subscriber growth, as well as an increase in global mobile devices serviced, mainly from higher trade-in volumes in Connected Living. Higher real estate related income, higher fixed maturity asset levels, and expansion across distribution channels in Global Automotive are also likely to have added to the upside.
Total benefits, losses and expenses might have escalated due to higher selling, underwriting, general and administrative expenses.
Continued share buybacks are likely to have aided the bottom line in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter earnings stands at $3.21 per share, which suggests an improvement of 7.4% from the prior-year reported figure.
What Our Quantitative Model Unveils
Our proven model predicts an earnings beat for Assurant this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Assurant has an Earnings ESP of +2.34%. This is because the Most Accurate Estimate of $3.28 is pegged higher than the Zacks Consensus Estimate of $3.21. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Assurant, Inc. Price and EPS Surprise
Assurant, Inc. price-eps-surprise | Assurant, Inc. Quote
Zacks Rank: Assurant has a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Some other insurance stocks also with the right combination of elements to come up with an earnings beat this time around are:
Lemonade, Inc. LMND has an Earnings ESP of +12.50% and a Zacks Rank of 1. The Zacks Consensus Estimate for second-quarter 2022 earnings indicates a decline of 51.1% from the year-ago reported figure.
LMND beat earnings estimates in two of the last four reported quarters while missing the same in the other two.
SelectQuote, Inc. SLQT has an Earnings ESP of +12.07% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings implies a decline of 1050% from the year-ago reported figure.
SLQT beat earnings estimates in two of the last four reported quarters while missing the same in the other two.
CCC Intelligent Solutions Holdings Inc. CCCS has an Earnings ESP of +4.35% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings stands at 8 cents, indicating a decline of 99.5% from the year-ago reported figure.
CCCS beat earnings estimates in two of the last four reported quarters while missing the same in the other two.
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Assurant, Inc. (AIZ) : Free Stock Analysis Report
SelectQuote, Inc. (SLQT) : Free Stock Analysis Report
Lemonade, Inc. (LMND) : Free Stock Analysis Report
CCC Intelligent Solutions Holdings Inc. (CCCS) : Free Stock Analysis Report
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