AIZ Trades Above 200-Day SMA: Time to Add it for Better Returns?

Assurant, Inc. AIZ has been trading above its 200-day simple moving average (SMA), signaling a short-term bullish trend. Its share price as of Tuesday was $205.44, down 10.8% from its 52-week high of $230.55.

The 200-day SMA is a long-term technical indicator that averages a stock's closing price over the last 200 trading days to smooth out volatility and identify the broader trend direction. When the stock price crosses above the 200-day SMA, it can be a signal to buy or hold.

Shares of Assurant have gained 6% in the past year, underperforming the industry’s return of 8.5%. 

The insurer has a market capitalization of $10.36 billion. The average volume of shares traded in the last three months was 0.4 million.

AIZ’s Expensive Valuation

Based on the forward 12-month price-to-book ratio, Assurant is currently trading at 10.54X, above its industry average of 8.91X. Shares of other insurers like CNO Financial Group, Inc. CNO, MGIC Investment Corporation MTG, and Old Republic International Corporation ORI are also trading at a multiple higher than the industry average.

AIZ’s Growth Projection Encourages

The Zacks Consensus Estimate for Assurant’s 2025 earnings per share indicates a year-over-year increase of 5.7%. The consensus estimate for revenues is pegged at $12.63 billion, implying a year-over-year improvement of 5.6%. 

The consensus estimate for 2026 earnings per share and revenues indicates an increase of 15.1% and 4.8%, respectively, from the corresponding 2025 estimates. 

Earnings have grown 16.6% in the past five years, better than the industry average of 9.8%.

Optimistic Analyst Sentiment for AIZ

Three of the five analysts covering the stock have raised estimates for both 2025 and 2026 over the past 30 days. Thus, the Zacks Consensus Estimate for 2025 and 2026 earnings has moved north 3.5% and 2.6%, respectively, over the past 30 days.

Average Target Price for AIZ Suggests Upside

Based on short-term price targets offered by six analysts, the Zacks average price target is $239.33 per share. The average suggests a potential 14.7% upside from the last closing price.

Assurant’s Favorable Return on Capital

Return on equity in the trailing 12 months was 16.4%, better than the industry average of 14.8%. This highlights the company’s efficiency in utilizing shareholders’ funds. 

Also, the return on invested capital (ROIC) has been increasing over the last few quarters as the company raised its capital investment over the same time frame, reflecting AIZ’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 10.7%, better than the industry average of 1.9%.

Key Points to Note for AIZ

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

Within Connected Living, AIZ continues to support long-term growth through the development of innovative offerings for partners. U.S. Connected Living is poised for solid growth, particularly within the mobile protection business, riding on innovative offerings, customer experience expertise and improved relationships with mobile carriers and cable operators.  

Homeowners’ top-line growth, more favorable loss experience from prior-period development on claims, growth in policies in-force and higher average premiums within lender-placed, as well as growth across various specialty products, should drive better results at Global Housing. For 2025, AIZ expects Global Housing adjusted EBITDA, excluding reportable catastrophes, to deliver strong growth.

Global Lifestyle growth is expected to be driven by Connected Living from growth in global mobile device protection and a new financial services program, inorganic and organic growth strategies. For 2025, Assurant expects Global Lifestyle adjusted EBITDA to increase from growth in Connected Living and Global Automotive. 

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.

Wealth Distribution

Assurant has a solid capital management policy. It expects to deploy capital to fund investments, mergers and acquisitions. In November 2024, the board approved a dividend hike of 11%, which is the 20th consecutive year of increase. During the second quarter of 2025, Assurant repurchased shares for $62 million. From July 1 through Aug. 1, 2025, the company repurchased shares for $25 million. Notably, $225 million remains under the current repurchase authorization. From a share repurchase perspective, Assurant’s expected range for 2025 is between $250 million and $300 million, subject to M&A as well as market and other conditions.

End Notes

Focus on capital-light businesses, Homeowners growth, and Connected Living growth within the mobile protection business should favor Assurant’s results. Higher return on capital, as well as favorable growth estimates and attractive valuations, should continue to benefit the insurer over the long term. 

Assurant also has a VGM Score of B. Stocks with a favorable VGM Score are those with the most attractive value, best growth and most promising momentum compared with peers. Its impressive dividend history as well as attractive valuations are other positives.

Coupled with the impressive dividend history, solid growth projections, as well as optimistic analyst sentiment, the time appears right for potential investors to bet on this Zacks Rank #1 (Strong Buy) insurer. You can see the complete list of today’s Zacks #1 Rank stocks here.

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

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