Reasons Why Assurant (AIZ) Stock is an Attractive Pick Now

Assurant, Inc.
AIZ is
well-poised to gain on the back of a well-performing Global
Lifestyle business, growth of fee-based capital-light businesses
and solid capital management.

Earnings Estimates

The Zacks Consensus Estimate for
Assurant's 2024 earnings is pegged at $16.02 per share, indicating
a 3.4% increase from the year-ago reported figure on 4.1% higher
revenues of $11.66 billion.

Earnings Surprise History

Assurant has a decent surprise
history, beating earnings estimates in each of the last four
quarters, the average surprise being 42.15%.

Northbound Estimate Revision

The Zacks Consensus Estimate for
2024 and 2025 earnings has moved up nearly 5.9% and 6.4%,
respectively, in the past 30 days, reflecting investors'
optimism.

Zacks Rank

The company currently carries a
Zacks Rank #2 (Buy). Over the past year, shares of AIZ have risen
44.6% compared with the

industry's growth of 5.6%.

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Source: Zacks Investment Research

Style Score

AIZ has a
VGM
Score of B. VGM Score helps identify stocks with the most
attractive value, best growth and the most promising momentum.
Back-tested results have shown that stocks with a VGM Score of A or
B combined with a Zacks Rank #1 (Strong Buy) or 2 offer better
returns.

Attractive Valuation

Assurant shares are trading at a
discount than the industry average. Its price-to-book value of
1.98X is lower than the industry average of 2.73X. Before the
valuation expands, it is preferable to take a position in the
stock.

AIZ has an impressive

Value Score of B. Value stocks have a long history of showing
superior returns.

Business Tailwinds

Assurant's focus on growing
fee-based capital-light businesses that presently constitute 52% of
segmental revenues bodes well for growth. Management estimates that
contribution from the same will continue to grow in double digits
over the longer term.

Better performance in Homeowners reflecting higher
lender-placed net earned premiums should drive better results at
Global Housing. At the same time, growth across Connected Living
and Global Automotive should drive Global Lifestyle.

The insurer remains focused on ramping up the Connected
Living platform, deploying innovative products and services, and
adding new partnerships. These initiatives are expected to double
the margins of Connected Living to 8% over the long term.

Investment income, which has been witnessing an increase in
net investment income over the past few years, should benefit from
higher yields on fixed-maturity securities.

AIZ has a solid capital management policy in place. The
insurer has been increasing dividends for the last 19 straight
years. From Jan 1 through Feb 2, 2024, Assurant repurchased shares
for $10 million, with $664 million remaining under the current
repurchase authorizations. The company expects share repurchases in
the range of $200-$300 million for 2024. Notably, its free cash
flow conversion has remained more than 100% over the last many
quarters, reflecting its solid earnings.

Other Stocks to Consider

Some other top-ranked stocks from
the multi-line insurance industry are
Enact Holdings
ACT,
CNO Financial Group
CNO and
MGIC Investment Corporation
MTG. While
Enact Holdings and CNO Financial sport a Zacks Rank #1 each, MGIC
Investment carries a Zacks Rank #2 at present. You can see

the complete list of today's Zacks #1 Rank stocks here.

Enact Holdings delivered a four-quarter average earnings
surprise of 24.59%. In a year, ACT's shares have gained 14.2%.

The Zacks Consensus Estimate for ACT's 2024 and 2025 earnings
has moved up 7.3% and 1%, respectively, in the past 30 days.

The Zacks Consensus Estimate for CNO Financial's 2024 and
2025 earnings implies a 2.5% and 7.1% increase, respectively, from
the year-ago estimated figure. In a year, CNO's shares have risen
4.5%.

CNO's earnings surpassed estimates in two of the last four
quarters and missed in the other two, the average surprise being
3.62%.

MGIC Investment delivered a four-quarter average earnings
surprise of 14.84%. In the past year, the insurer's shares have
jumped 44.6%.

The Zacks Consensus Estimate for 2024 and 2025 earnings has
moved up nearly 2.1% and 1.2%, respectively, in the past 30
days.

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MGIC Investment Corporation (MTG): Free Stock Analysis Report

CNO Financial Group, Inc. (CNO): Free Stock Analysis Report

Assurant, Inc. (AIZ): Free Stock Analysis Report

Enact Holdings, Inc. (ACT): Free Stock Analysis Report

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