Assurant Q2 Earnings Beat Estimates, Revenues & Premiums Rise Y/Y

Assurant, Inc. AIZ reported second-quarter 2025 net operating income of $5.56 per share, which beat the Zacks Consensus Estimate by 25.5%. The bottom line rose 36.3% year over year.

Quarterly results benefited from higher net earned premiums, fees and other income and net investment income, and solid performance in the Global Lifestyle as well as the Global Housing segment. These were partially offset by higher expenses and weakness in the Corporate & Other segment.

Total revenues increased 6.5% year over year to $3.1 billion, driven by higher net earned premiums, fees and other income and net investment income. The top line beat the Zacks Consensus Estimate by 0.7%. 

Assurant, Inc. Price, Consensus and EPS Surprise

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

Net earned premiums, fees and other income increased 5.9% year over year to $2.6 billion, driven by growth across both segments. Our estimate was $2.5 billion.

Net investment income increased 3.2% year over year to $128.7 million, driven by higher yields and assets in fixed maturity securities, short-term investments and cash and cash equivalents. Our estimate was $121.1 million. The Zacks Consensus Estimate was pegged at $130 million.

Total benefits, loss and expenses increased 6.5% year over year to $2.9 billion, mainly due to higher policyholders' benefits and underwriting and selling, general and administrative expenses. Our estimate was $2.8 billion.

Adjusted EBITDA, excluding reportable catastrophes, increased 12.7% year over year to $415.8 million. Our estimate was $405.4 million.

Segmental Performance

Revenues at Global Housing increased 10.2% year over year to $732 million, primarily driven by higher net earned premiums and net investment income. The figure was lower than our estimate of $1.1 billion. The Zacks Consensus Estimate was pegged at $737 million.

Net earned premiums, fees and other income increased 10% year over year, driven by Homeowners’ top-line growth, including growth in policies in force and higher average premiums within lender-placed. 

Adjusted EBITDA, excluding catastrophes, increased 18% year over year to $244.2 million on continued top-line growth within Homeowners, including higher policies in force from new lender-placed programs and portfolios. The figure was higher than our estimate of $182.8 million. The Zacks Consensus Estimate was pegged at $179 million. 

Revenues at Global Lifestyle rose 7.5% year over year to $2.4 billion, which beat the Zacks Consensus Estimate as well as our estimate, both of which were pegged at $2.3 billion. The increase was primarily driven by higher net earned premiums, fees and other income. 

Adjusted EBITDA, excluding catastrophes, of $201.4 million increased 6% year over year, attributable to Connected Living growth, which was mainly driven by higher contributions from global mobile protection and trade-in programs. Global Automotive results increased modestly from improved loss experience. The figure was lower than our estimate of $204.5 million. The Zacks Consensus Estimate was pegged at $202 million.

Adjusted EBITDA loss at Corporate & Other was $29.8 million, wider than the year-ago quarter’s adjusted EBITDA loss of $27.2 million. The wider loss was attributable to higher employee-related expenses and lower investment income.

Financial Position of AIZ

Liquidity was $518 million as of June 30, 2025, which was $293 million higher than the company’s current targeted minimum level of $225 million.

Total assets increased 1.4% to nearly $36 billion as of June 30, 2025, from the end of 2024.

Total shareholders’ equity came in at $5.5 billion, up 7.7% year over year.

Assurant’s Share Repurchase and Dividend Update

In the second quarter, Assurant repurchased shares for $62 million. From July 1 through Aug. 1, 2025, the company repurchased shares worth $25 million. It now has $225 million remaining under the current repurchase authorization.

AIZ’s total dividends amounted to $43 million in the reported quarter.

Assurant Provides Guidance for 2025

Assurant expects adjusted EBITDA, excluding reportable catastrophes, to have mid-to high single-digit growth.

Global Lifestyle adjusted EBITDA is expected to increase from growth in Connected Living and Global Automotive.

Global Housing adjusted EBITDA, excluding reportable catastrophes, is expected to increase.

Corporate and Other adjusted EBITDA loss is expected to approximate $115 million.

Assurant expects adjusted earnings per diluted share, excluding reportable catastrophes, to grow by 10%. The company now expects depreciation expense of approximately $155 million. It continues to expect an effective tax rate of approximately 19% to 21%, interest expense of approximately $107 million and amortization of purchased intangible assets of approximately $65 million.

AIZ expects to return $250 to $300 million in share repurchases, at the upper end of our 2025 guidance, reflecting strong capital position and business performance.

AIZ Zacks Rank

Assurant currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Prudential Financial, Inc. PRU reported second-quarter 2025 adjusted operating income of $3.58 per share, which beat the Zacks Consensus Estimate by 11.5%. The bottom line rose 5.6% year over year. Total revenues of $13.5 billion beat the Zacks Consensus Estimate by 0.2% but declined 2.4% year over year. The decrease in revenues was due to lower premiums. Total benefits and expenses amounted to $11.8 billion, which declined 3.6% year over year in the second quarter. This decrease was due to lower insurance and annuity benefits. The figure was lower than our estimate of $12 billion.

Radian Group Inc. RDN reported second-quarter 2025 adjusted operating income of 1.01 per share, which beat the Zacks Consensus Estimate by 8.6%. The bottom remained flat year over year. Operating revenues remained flat year over year at $312 million and missed the Zacks Consensus Estimate by 1.5%. Net premiums earned were $237.5 million, down 0.1% year over year. Net investment income decreased 1.4% year over year to $72.7 million. MI new insurance written increased 2.9% year over year to $14.3 billion. Primary mortgage insurance in force increased 1.4% year over year to record $276.7 billion.

Shares of MGIC Investment Corporation MTG gained 2.3% in the last three trading session as the insurer’s bottom line beat expectations. MTG reported second-quarter 2025 operating net income per share of 82 cents, which beat the Zacks Consensus Estimate by 17.1%. Moreover, the bottom line increased 6.5% year over year.

MGIC Investment recorded total operating revenues of $306 million, which remained flat year over year on higher net investment income, other revenues and premiums earned. The top line missed the consensus mark by 0.4%.

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

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