It has been about a month since the last earnings report for Assurant (AIZ). Shares have added about 1.8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Assurant due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Assurant, Inc. before we dive into how investors and analysts have reacted as of late.
Assurant Q3 Earnings & Revenues Top Estimates on Higher Premiums
Assurant, Inc. reported third-quarter 2025 net operating income of $5.73 per share, which beat the Zacks Consensus Estimate by 35.4%. The bottom line surged 91% year over year. The quarterly results reflected solid performance at Global Housing and Global Lifestyle segments with higher revenues and improved net investment income. These were partially offset by higher expenses and weakness in the Corporate & Other segment.
Total revenues increased 8.6% year over year to nearly $3.2 billion, driven by higher net earned premiums, fees and other income and net investment income. The top line beat the Zacks Consensus Estimate by 2.6%. Net earned premiums, fees and other income increased 8.9% year over year to $3.1 billion. Our estimate was $3 billion. Net investment income was up 2.9% year over year to $133.5 million. Our estimate was $125.1 million. The Zacks Consensus Estimate was pegged at $131 million.
Total benefits, loss and expenses increased 3% to $2.9 billion, mainly due to higher underwriting, selling, general and administrative expenses and interest expense. Our estimate was $2.8 billion. Adjusted EBITDA, excluding reportable catastrophes, increased 13% to $433.5 million. Our estimate was $439.4 million.
Segmental Performance
Revenues at Global Housing increased 16.2% year over year to $738.9 million, primarily driven by higher net earned premiums, fees and other income and net investment income. The figure was higher than our estimate of $703.1 million. The Zacks Consensus Estimate was $711 million. Net earned premiums, fees, and other income increased 16% year over year to $702.9 million. The increase is driven by the run-rate adjustment from the prior-year period, growth in policies in-force, and higher average premiums within lender-placed, as well as growth in Renters and Other and across various specialty products within Homeowners.
Adjusted EBITDA, excluding catastrophes, increased 13% year over year to $259.2 million. The growth is driven by the previously disclosed $27.5 million unfavorable non-run rate adjustment in third-quarter 2024. The figure was lower than our estimate of $273.1 million. The Zacks Consensus Estimate was $240 million.
Revenues at Global Lifestyle increased 6.8% year over year to $2.5 billion, primarily driven by higher net earned premiums, fees and other income and net investment income. The figure was higher than our estimate of $2.4 billion. Revenues matched the Zacks Consensus Estimate. Adjusted EBITDA of $206.8 million increased 12% year over year. The improvement was driven by double-digit earnings growth across both Connected Living and Global Automotive. In Connected Living, quarterly results benefited from contributions from a new financial services program, global subscriber growth, and trade-in performance in mobile. In Global Automotive, results included a non-run rate benefit of $6.1 million as well as improved loss experience. The figure was higher than our estimate of $195.4 million. The Zacks Consensus Estimate was pegged at $197 million.
Adjusted EBITDA loss at Corporate & Other was $31.6 million, wider than the year-ago quarter’s adjusted EBITDA loss of $29.8 million. The wider loss was due to lower investment income. The Zacks Consensus Estimate was pegged at a loss of $28.6 million.
Financial Position
Liquidity was $613 million as of Sept. 30, 2025, which was $388 million higher than the company’s current targeted minimum level of $225 million. Total assets increased 2.2% to $35.7 billion as of Sept. 30, 2025, from the end of 2024. Total shareholders’ equity came in at $5.7 billion, up 12.7% from the end of 2024. Debt-to-total capital ratio of 27.7 improved 130 bps from the 2024 end level.
Share Repurchase and Dividend Update
In third-quarter 2025, Assurant repurchased shares for $81 million and paid $41 million in dividends. From Oct. 1 through Oct. 31, 2025, AIZ repurchased shares for $27 million. Assurant has $141 million remaining under the current repurchase authorization.
2025 Guidance Raised
Assurant expects adjusted EBITDA, excluding reportable catastrophes, to approach 10% growth. Global Lifestyle adjusted EBITDA is projected to increase from growth in Connected Living and Global Automotive.
Global Housing adjusted EBITDA, excluding reportable catastrophes, is anticipated to deliver strong growth. Corporate and Other adjusted EBITDA loss is expected to be $120 million.
Adjusted earnings, excluding reportable catastrophes, per diluted share, are expected to deliver low double-digit growth. AIZ expects depreciation expense of approximately $150 million and interest expense of around $110 million. AIZ continues to expect an effective tax rate of approximately 19% to 21% and amortization of purchased intangible assets of nearly $65 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, Assurant has a average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Assurant has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Assurant is part of the Zacks Insurance - Multi line industry. Over the past month, EverQuote (EVER), a stock from the same industry, has gained 10%. The company reported its results for the quarter ended September 2025 more than a month ago.
EverQuote reported revenues of $173.94 million in the last reported quarter, representing a year-over-year change of +20.3%. EPS of $0.50 for the same period compares with $0.31 a year ago.
EverQuote is expected to post earnings of $0.35 per share for the current quarter, representing a year-over-year change of +6.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.4%.
EverQuote has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Assurant, Inc. (AIZ): Free Stock Analysis Report EverQuote, Inc. (EVER): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
