Here's How Much You'd Have If You Invested $1000 in Assurant a Decade Ago
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Assurant (AIZ) ten years ago? It may not have been easy to hold on to AIZ for all that time, but if you did, how much would your investment be worth today?
Assurant's Business In-Depth
With that in mind, let's take a look at Assurant's main business drivers.
Founded in 1969 and headquartered in New York, Assurant Inc. is a global provider of risk management solutions in the housing and lifestyle markets, protecting where people live and the goods they buy. The company operates in North America, Latin America, Europe and Asia Pacific. Assurant was incorporated as a Delaware corporation in 2004.
The company reports through three reportable segments: Global Lifestyle and Global Housing.
Global Lifestyle segment (78.5% of 2022 Net earned premiums) provides mobile device protection products and related services and extended service products and related services for consumer electronics and appliances (referred to as Connected Living); vehicle protection and related services (referred to as Global Automotive); and credit and other insurance products (referred to as Global Financial Services).
Global Lifestyle operates globally, with about 82% of its revenues from North America, 8% from Latin America, 5% from Europe and 5% from Asia Pacific for the year ended Dec 31, 2022.
Global Housing segment (21.5%) provides lender-placed homeowners insurance, lender-placed manufactured housing insurance, lender-placed flood insurance; and renters insurance and related products (referred to as Multifamily Housing), as well as voluntary manufactured housing and other insurance. This segment is comprised of two key lines of business, Homeowners and Renters and Other.
On Aug 1, 2018, Assurant sold its Mortgage Solutions business, which comprised property inspection and preservation, valuation and title services and other property risk management services.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Assurant a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in October 2013 would be worth $2,567.69, or a 156.77% gain, as of October 16, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 154.10% and the price of gold went up 44.75% over the same time frame.
Analysts are anticipating more upside for AIZ.
Assurant’s shares have outperformed its industry in the year-to-date period. Its focus on inorganic and organic growth strategies bodes well for growth. For 2023, it expects adjusted EBITDA, excluding reportable catastrophes, to increase by high single-digit. Growth in Global Housing is being driven by improved performance in Homeowners reflecting higher lender-placed net earned premiums. Global Lifestyle stands to gain from growth across Connected Living and Global Automotive. It plans to deploy capital, mainly to fund business growth and return capital to shareholders via share buybacks and dividend. Exposure to economic and political risks raises concerns. High expenses can put strain on margin expansion. High leverage ratio poses financial risk. We expect total expenses to rise 0.7% in 2023. As such this stock warrants a cautious stance.
The stock is up 6.84% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2023. The consensus estimate has moved up as well.
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Assurant, Inc. (AIZ) : Free Stock Analysis Report
