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Strategic Plans, Solid Capital Position Aid Assurant (AIZ)

Zacks Equity Research

Assurant Inc. AIZ is well poised for growth on disciplined capital management strategy, strategic initiatives and effective capital deployment. The stock carries a VGM Score of B. This helps to identify stocks with the most attractive value, best growth and the most promising momentum.

Estimates for Assurant have been revised upward over the past 30 days, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2020 earnings per share has moved up 0.6% in the said time frame. The company also has a decent history of beating estimates in three of the trailing four quarters, the average being 20.25%.

Shares of Assurant have gained 47.7% year to date, outperforming the industry’s growth of 13.7%.


 

Assurant’s return on equity (ROE) was 8.1% in the trailing 12-month period, higher than the industry average of 7.9%. ROE is a profitability measure that identifies a company’s efficiency in utilizing its shareholders’ funds.

Assurant is focused on strategic initiatives to expand its housing and lifestyle businesses and reinforce capabilities. Notably, the company intends to merge its e-commerce capabilities and operations. The company remains focused on enhancing operations and disclosing innovative offerings.

The Global Lifestyle segment of the company has been witnessing an increase in revenues for several quarters. The company expects net operating income in this segment to grow by at least 10% on average from 2019 to 2021, and continue to produce strong cash flows.

This Zacks Rank #3 (Hold) multi-line insurer’s sound financial position aids in efficient capital deployment. In November 2019, Assurant hiked divided by 5% making it an attractive pick for yield-seeking investors. The company has $595.1 million remaining under its buyback authorization.

The Zacks Consensus Estimate for 2019 and 2020 earnings per share is pegged at $8.69 and $9.78, indicating an improvement of 49.8% and 12.6%, respectively, from the year-ago reported figure.

Stocks to Consider

Some better-ranked life insurance stocks include EverQuote Inc. EVER, Kemper Corp. KMPR and MGIC Investment Corp. MTG. While EverQuote sports a Zacks Rank #1 (Strong Buy), Kemper and MGIC Investment carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

EverQuote’s online marketplace offers consumers shopping for auto, home, and life insurance quotes.  The company came up with average four-quarter positive surprise of 84.25%.

Kemper provides property and casualty, and life and health insurance to individuals and businesses in the United States.  The company delivered average four-quarter positive surprise of 16.40%.

MGIC Investment provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States. The company pulled off an average four-quarter positive surprise of 12.63%.

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EverQuote, Inc. (EVER) : Free Stock Analysis Report
 
Assurant, Inc. (AIZ) : Free Stock Analysis Report
 
Kemper Corporation (KMPR) : Free Stock Analysis Report
 
MGIC Investment Corporation (MTG) : Free Stock Analysis Report
 
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