Is a Beat in the Cards for Assurant This Earnings Season?

Assurant, Inc. AIZ is expected to register an improvement in its top and bottom lines when it reports second-quarter 2025 results on Aug. 5, after the closing bell.

The Zacks Consensus Estimate for AIZ’s second-quarter revenues is pegged at $3.11 billion, indicating 5.7% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at $4.43 per share. The Zacks Consensus Estimate for AIZ’s second-quarter earnings has moved down 1.1% in the past 30 days. The estimate suggests a year-over-year increase of 8.5%.

What the Zacks Model Unveils for AIZ

Our proven model predicts an earnings beat for Assurant this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) that increases the chances of an earnings beat.

Earnings ESP: Assurant has an Earnings ESP of +1.99%. This is because the Most Accurate Estimate of $4.52 is pegged higher than the Zacks Consensus Estimate of $4.43. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Assurant, Inc. Price and EPS Surprise

Assurant, Inc. price-eps-surprise | Assurant, Inc. Quote

Zacks Rank: AIZ carries a Zacks Rank #3 at present.

Factors Likely to Shape Q2 Results of AIZ

Solid performance at the Global Housing segment, as well as growth in Global Lifestyle, is likely to have aided the second-quarter performance of Assurant.

Revenues are likely to have benefited from improved net earned premiums and higher net investment income. 

Net earned premiums are expected to have benefited from higher premiums in the Global Housing and Global Lifestyle segments.

The Zacks Consensus Estimate for second-quarter net earned premiums, fees, and other income is pegged at $2.6 billion. We expect net earned premiums to increase 4.5% to $2.5 billion in the to-be-reported quarter. We expect fees and other income to increase 12.5% to $422.2 million in the second quarter.

Net investment income is likely to have been affected by reduced partnership income and lower yields on cash and short-term investments. The downside is likely to have been partially offset by an increase in fixed maturity securities related to higher yields and assets. The Zacks Consensus Estimate for second-quarter net investment income is pegged at $130 million. We expect net investment income to be $121.1 million.

Global Housing is expected to have been driven by Homeowners' top-line growth, including growth in policies in-force and higher average premiums within lender-placed, as well as growth across various specialty products. The Zacks Consensus Estimate for the segment’s second-quarter revenues is pegged at $737 million, suggesting growth of 11% from the year-ago quarter’s level. We expect the segment’s revenues to be $734.6 million.

Global Lifestyle is likely to have benefited from Connected Living, from growth in global mobile device protection, and a new financial services program. The Zacks Consensus Estimate and our estimate for the segment’s second-quarter revenues are both pegged at $2.3 billion. 

Total benefits, losses, and expenses might have escalated because of higher underwriting and selling, general, and administrative expenses. We expect total expenses to be $2.7 billion. 

Continued share buybacks are likely to have aided the bottom line in the to-be-reported quarter.

Other Stocks to Consider

Here are some other finance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:

Root, Inc. ROOT has an Earnings ESP of +58.29% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for second-quarter 2025 earnings is $1.06 per share, representing a 303.8% increase from the year-ago reported figure. ROOT’s earnings beat estimates in each of the last four quarters.

American International Group, Inc. AIG currently has an Earnings ESP of +0.18% and a Zacks Rank of #3. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.58 per share, indicating a year-over-year increase of 36.2%. 

AIG’s earnings beat estimates in three of the last four quarters while missing in one.

Primerica, Inc. PRI has an Earnings ESP of +0.14% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is $5.17 per share, representing a 9.7% increase from the year-ago reported figure.

PRI’s earnings beat estimates in each of the last four quarters.

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This article originally published on Zacks Investment Research (zacks.com).

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