Analyst Tommy McJoynt from Keefe Bruyette has revised the price target for Assurant (AIZ, Financial), boosting it to $225 from the previous $224. He maintains an Outperform rating on the stock. This optimistic outlook is based on the company's consistent performance in the Housing sector and anticipated progress in Connected Living and Global Auto segments. McJoynt believes these factors will contribute to Assurant's sustained growth and strength in the market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Assurant Inc (AIZ, Financial) is $229.60 with a high estimate of $250.00 and a low estimate of $200.00. The average target implies an upside of 13.48% from the current price of $202.33. More detailed estimate data can be found on the Assurant Inc (AIZ) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Assurant Inc's (AIZ, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Assurant Inc (AIZ, Financial) in one year is $205.87, suggesting a upside of 1.75% from the current price of $202.33. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Assurant Inc (AIZ) Summary page.
AIZ Key Business Developments
Release Date: May 07, 2025
- Adjusted EBITDA Growth: 14% growth in adjusted EBITDA, excluding reportable catastrophes.
- Adjusted Earnings Per Share Growth: 16% growth in adjusted earnings per share, excluding reportable catastrophes.
- Global Housing Top-Line Growth: 17% growth within homeowners, driven by the addition of 70,000 lender placed policies.
- Combined Ratio: Delivered a combined ratio of 90% in Q1, with a full-year target around the mid-80s.
- Global Lifestyle Revenue Growth: 5% growth in net earned premiums, fees, and other income, or 7% on a constant currency basis.
- Global Housing Adjusted EBITDA: $269 million excluding catastrophes, with a 31% increase.
- Holding Company Liquidity: Over $500 million at quarter end.
- Shareholder Returns: Over $100 million returned to shareholders, including $62 million in share repurchases.
- Catastrophe Reinsurance Program: $1.8 billion in loss coverage with a $160 million retention level.
- Expected Catastrophe Load: $300 million for full year 2025, including California wildfires.
- Share Repurchase Outlook: Expected range of $200 million to $300 million for 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Assurant Inc (AIZ, Financial) reported a strong start to 2025 with 14% growth in adjusted EBITDA and 16% growth in adjusted earnings per share, excluding reportable catastrophes.
- The company has a diversified global operating model with market-leading businesses in global housing and global lifestyle, supported by a robust capital position.
- Assurant Inc (AIZ) has a proven track record of delivering earnings growth over nine consecutive years, demonstrating resilience through various economic cycles.
- The company is expanding its partnerships, including a new mobile device protection plan with Verizon's Total Wireless, enhancing its market position in the telecom industry.
- Assurant Inc (AIZ) achieved significant top-line growth in its homeowners segment, driven by the addition of 70,000 lender-placed policies, resulting in a compelling combined ratio of 90%.
Negative Points
- The Global Lifestyle segment saw a 5% decline in adjusted EBITDA compared to the previous year, impacted by unfavorable foreign exchange and a one-time client contract benefit from the prior year.
- The company is facing potential impacts from tariffs, particularly in the Auto and Housing segments, which could lead to higher claims costs.
- Assurant Inc (AIZ) experienced elevated catastrophe losses in the first quarter, including significant impacts from California wildfires.
- The expense ratio in the Global Housing segment increased due to higher reinsurance costs and expenses related to managing catastrophe claims.
- The company anticipates that foreign exchange and incremental investments will mute growth in the Lifestyle segment by a few percentage points in 2025.
