Assurant, Inc.

Assurant, Inc. has raised its full-year 2026 outlook after reporting record second-quarter 2026 results, with adjusted EBITDA excluding catastrophes up 18% year over year to $491.4 million and adjusted EPS rising 19% to $6.60. The insurer's shares have gained 20.1% over the past year, outpacing the industry's growth of 1.9%, while peers The Travelers Companies, Inc. rose 23% and NMI Holdings Inc. and Cincinnati Financial Corporation fell 8.9% and 2.4%, respectively. Management now expects Global Lifestyle adjusted EBITDA to grow in the low double digits in 2026, above its prior expectation of about 10%, after Connected Living earnings rose 24% in the first half of 2026, and it raised its 2026 Housing outlook to modest earnings growth excluding catastrophes. The Zacks Consensus Estimate for 2026 EPS implies a year-over-year increase of 12.7%, with revenues pegged at $13.92 billion, up 8.4%, and the consensus 2026 and 2027 earnings estimates have moved up 0.1% and 0.3%, respectively, over the past 30 days. Assurant's holding-company liquidity reached $911 million as of June 30, 2026, and 2026 share repurchases through July totaled $230 million, with management expecting full-year buybacks toward the upper end of its $300-$350 million range.

Assurant has launched its Financial Services Ecosystem Protection business in Chile, extending the insurer's focus to everyday risks around payments, purchases, fraud and vehicle financing. The Chile launch lands during a softer patch for the shares, with the 30-day share price return down 7.7% and the 90-day share price return down 3.8%, though the stock still shows a 10.9% year-to-date share price gain and a 23.5% 1-year total shareholder return. Assurant now trades at $263.65, a discount to the most followed analyst view that values the company at $330 per share, implying roughly 20.1% undervaluation. The company's investments in AI, automation, robotics and digital platforms across Connected Living, Automotive and Housing are aimed at streamlining claims and operations and supporting net margin and earnings growth. The bullish case still hinges on lender placed housing avoiding tougher regulation and on institutional selling not turning into sustained pressure on the share price.

Assurant released data on August 27 showing that mobile trade-in programs returned $1.43 billion to US consumers in the second quarter of 2026, with the average iPhone turned in through those programs passing its fourth birthday for the first time. The iPhone 13 was the most common trade-in and the Galaxy S23 Ultra led Android models, while the Apple Ultra 3 smartwatch fetched an average of $341 in trade-in value during the quarter. Assurant works with wireless carriers, retailers and manufacturers to repair, sort and resell used devices, and on August 4 it reported that Global Lifestyle, the segment housing its device work, grew adjusted EBITDA 21% in the second quarter, while Connected Living rose 29%, or 22% excluding a $10 million benefit outside its normal run rate. Management raised its full-year outlook and now guides Global Lifestyle earnings up by a low double-digit percentage, and expects to buy back shares toward the top of a $300 million to $350 million range. The company noted that the $1.43 billion is what consumers received for their old gadgets rather than revenue on Assurant's income statement, and that Global Housing profit rose 28% partly on lighter catastrophe losses of $12.2 million versus $29.8 million a year earlier.

The Federal Reserve raised its benchmark lending rate by 25 basis points to a range of 3.75-4% in a 12-0 vote on Sept. 16, citing sticky inflation aggravated by a spike in crude oil prices from persistent geopolitical conflicts in the Middle East. Fed Chairman Kevin Warsh said the central bank's predominant focus is on the price stability side of its mandate, adding that inflation is too high and has been for too long. Following the release of the minutes, the yield on the benchmark 10-Year U.S. Treasury Note rose above the psychological barrier of 5% to 5.016%, after hitting a 19-year high on Sept. 15, while the 2-Year U.S. Treasury Note yield rose to 4.738% and the 30-Year U.S. Treasury Note yield rose to 5.347%. Higher market interest rates widen the spread between longer-term assets and shorter-term liabilities, and higher bond yields raise the market's risk-free returns, both of which should benefit insurers that hold large long-term safe bond portfolios to back written policies. Against that backdrop, Zacks recommends three insurance stocks carrying a Zacks Rank #1 (Strong Buy) or 2 (Buy): The Travelers Companies Inc., Reinsurance Group of America Inc. and Assurant Inc.

Assurant's Board of Directors declared a quarterly dividend of $0.88 per share, payable on September 28, 2026, to shareholders of record on August 31. The announcement comes as the stock trades at $284.04, with a 30-day return of 3.99% and a year-to-date return of 19.49%. The most followed valuation narrative pegs fair value at $322.33, implying the stock is 11.9% undervalued, though a separate view notes the current P/E of 13.3x exceeds a fair ratio of 12.3x and the industry average of 11.2x.

Assurant and Essent Group were among the standout performers in the second quarter property and casualty insurance earnings season. Assurant reported revenues of $3.46 billion, up 9% year on year, beating analysts' expectations by 0.9%, while Essent Group posted revenues of $362.7 million, up 13.6% year on year, exceeding estimates by 9.7%. Radian Group was the weakest performer, with revenues of $580.7 million, up 90.8% year on year but in line with expectations and a significant miss on EPS. Bowhead Specialty reported revenues of $163.9 million, up 23% year on year, beating estimates by 0.7%, and HCI Group reported revenues of $246.7 million, up 11.1% year on year, topping expectations by 2.5%. Overall, the 32 property and casualty insurance stocks tracked beat consensus revenue estimates by 2.3% and provided next quarter revenue guidance 0.9% above expectations.

Assurant reported record second-quarter earnings and raised its full-year 2026 financial outlook. Adjusted EBITDA excluding catastrophes rose 18% to $491.4 million, while adjusted earnings per share excluding catastrophes grew 19% to $6.60. Global Lifestyle adjusted EBITDA increased 21% to $244.4 million, driven by Connected Living and Global Automotive, and Global Housing adjusted EBITDA excluding catastrophes climbed 18% to $287.0 million, helped by a lower non-catastrophe loss ratio and reduced reinsurance costs. The company now expects full-year adjusted EBITDA and adjusted earnings per share, both excluding catastrophes, to grow mid-single digits, overcoming a $71 million headwind from lower favorable prior-year reserve development. Assurant also announced a new lender-placed insurance partnership with Freedom Mortgage, covering approximately 2.6 million loans, and said it expects share repurchases toward the upper end of its $300 million to $350 million range for the year.

Assurant's 2026 Global Connected Consumer Trends Report reveals that Canada scores 61 out of 100 on the Technology Sentiment Index, indicating a more measured approach to technology adoption compared to some global markets. The report finds that 72 percent of Canadians say connected technology makes their lives better, particularly in shopping, entertainment, and communication. Customization is increasingly important, with 85 percent of consumers globally saying customizable protection plans make them more likely to purchase a device. Canadians are also taking a thoughtful approach to AI adoption, with those using AI-enabled devices more likely to value protection for their smartphones and computers. The findings highlight a growing demand for flexibility, transparency, and reliable support as connected technology becomes more central to everyday life.

Assurant shares closed at $264.43 on Friday, near their 52-week high of $268.67, reflecting strong investor confidence and upward momentum. The stock has risen 33.9% over the past year, outperforming the multi-line insurance industry's 1.3% growth, the finance sector's 11.4%, and the S&P 500's 21.5%. Earnings grew 17.3% over the last five years, above the industry average of 10.7%, and the company has beaten estimates in each of the last four quarters by an average of 18.06%. The Zacks Consensus Estimate projects 2026 earnings per share to increase 6.4% year-over-year on revenues of $13.88 billion, up 8%, with further growth of 7.3% and 7% respectively in 2027. Four of six analysts have raised estimates for both years, pushing the consensus higher, and the average price target of $283.83 suggests an 8.8% upside. Assurant's return on equity of 20.3% and return on invested capital of 13.3% both exceed industry averages, supported by a focus on fee-based, capital-light businesses that now account for 52% of segment revenues. The company also maintains a strong capital position with $836 million in liquidity as of March 31, 2026, and plans $250 million to $350 million in share repurchases this year after a 10% dividend hike in November 2025.

Assurant, Inc. has outperformed the broader financial sector, with its stock climbing 33.4% over the past 52 weeks compared to a 5.5% return for the State Street Financial Select Sector SPDR ETF. The Atlanta-based insurer, valued at $13 billion, reported first-quarter adjusted earnings per share of $5.95, beating Wall Street expectations of $5.40, while revenue rose 11.3% year over year to $3.4 billion. AIZ shares have gained 22.9% over the past three months and 8.6% year-to-date, consistently trading above both its 50-day and 200-day moving averages. Wall Street analysts rate the stock a consensus Strong Buy with a mean price target of $283.83, implying an 8.5% upside from current levels.