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Atlanta, Georgia-based Assurant, Inc. (AIZ) is a global provider of risk management solutions in the housing and lifestyle markets, protecting where people live and the goods they buy. With a market cap of $11.6 billion, Assurant’s operations span the Americas, Indo-Pacific, and Europe.
Assurant has outperformed the broader market over the past year. AIZ stock has surged over 34.7% on a YTD basis and over 34.8% in the past 52 weeks, compared to the S&P 500 Index’s ($SPX) 25.8% gains in 2024 and 31.8% returns over the past year.
However, when compared to an industry-focused ETF, AIZ has lagged behind SPDR S&P Insurance ETF’s (KIE) 37.2% gains on a YTD basis and 36.9% returns over the past year.
Assurant’s stock prices soared 6.9% in the trading session after its better-than-expected Q3 earnings release on Nov. 5. The company reported a 7% year-over-year growth in total revenues, reaching approximately $3 billion, exceeding Wall Street’s topline expectation. Moreover, its adjusted EPS of $3 also surpassed analysts’ bottom-line estimate by a staggering 20%, bolstering investors’ confidence.
AIZ’s profitability has taken a sharp hit despite beating analysts’ estimates. The company observed a massive 20.5% increase in policyholder benefits compared to the year-ago quarter to $776.8 million and a 7.4% rise in underwriting, selling, general, and admin expenses to over $2 billion. The surge in these expenses led to a massive 29.6% decline in net income to $133.8 million.
For the current fiscal year, ending in December, analysts expect AIZ to report a marginal drop in adjusted EPS to $15.41. Nevertheless, the company has an impressive earnings surprise history. It has surpassed analysts’ earnings estimates in the past four quarters.
AIZ stock has a consensus “Moderate Buy” rating overall. Out of the six analysts covering the stock, three recommend “Strong Buy,” and three advise a “Hold” rating.
This configuration is slightly less bullish than a month ago when four analysts recommended “Strong Buy” ratings.
On Nov. 12, Keefe, Bruyette & Woods analyst Tommy McJoynt maintained a “Market Perform” rating on AIZ while raising the price target to $212.
Meanwhile, AIZ’s mean price target of $229.60 represents a 1.1% premium compared to the current price levels. The Street-high price target of $240 suggests a just 5.7% upside potential.
