Assurant Q4 Earnings & Revenues Beat Estimates on Higher Premiums

Assurant, Inc. AIZ reported fourth-quarter 2025 net operating income of $5.61 per share, which beat the Zacks Consensus Estimate by 1.08%. The bottom line increased 17% year over year.

The results reflected continued solid performance in Global Housing and Global Lifestyle segments, as well as growth in Global Automotive within Global Lifestyle, offset by higher expenses. 

Total revenues increased 7.5% year over year to $3.3 billion due to higher net earned premiums, net investment income, and fees and other income. The top line beat the Zacks Consensus Estimate by 2.7%.

Adjusted EBITDA, excluding reportable catastrophes, increased 3% to $445.9 million, due to growth within both Global Housing and Global Lifestyle.

Total benefits, loss and expenses increased 7.4% to $3.1 billion, mainly on account of an increase in policyholder benefits, underwriting, selling, general and administrative expenses and interest expense. The figure was higher than our estimate of $2.8 billion.

Segmental Performance

Net earned premiums, fees and other income at Global Housing increased 10% to $711.4 million. The increase was driven by growth in policies in-force and higher average premiums within lender-placed, as well as growth in various specialty products. Renters and Other also increased, led by contributions from a new book of business. The figure beat the Zacks Consensus Estimate of $697 million and was higher than our estimate of $661.3 million.

Adjusted EBITDA was $275.6 million, up 22% year over year, driven by $40.6 million of lower pre-tax reportable catastrophes. Excluding reportable catastrophes, Adjusted EBITDA increased 3%, driven by top-line growth within Homeowners from higher lender-placed policies in-force and specialty products. The increase was partially offset by unfavorable non-catastrophe loss experience, including $9 million of lower favorable prior-period reserve development. The figure was higher than our estimate of $216.7 million.

Net earned premiums, fees and other income at Global Lifestyle increased 7% to $2.5 billion, primarily driven by Connected Living growth from global device protection programs and trade-in volume, as well as higher contributions from extended service contract programs and modest growth in Global Automotive. The figure beat the Zacks Consensus Estimate of $2.4 billion and was higher than our estimate of $2.4 billion.

Adjusted EBITDA of $195.3 million increased 2% year over year. The increase was primarily driven by growth in Global Automotive and Connected Living. In Global Automotive, results benefited from improved loss experience. In Connected Living, underlying growth of 7%, which excludes a $7 million non-run rate inventory adjustment, was primarily driven by global mobile protection programs and trade-in performance. The figure was lower than our estimate of $207.5 million.

Adjusted EBITDA loss at Corporate & Other was $34.4 million, narrower than the year-ago quarter’s adjusted EBITDA loss of $35.7 million. The narrower loss was primarily due to lower third-party expenses, partially offset by organic investments to support our Home Warranty business.

Full-Year Highlights

Adjusted earnings increased 19% to $19.77 per share in 2025. The metric beat the Zacks Consensus Estimate by 0.05%.

Net earned premiums, fees and other income from the Global Lifestyle and Global Housing segments totaled $12.35 billion, up 8.1%, driven by growth across all lines of business within Global Lifestyle and Global Housing.

Adjusted EBITDA, excluding reportable catastrophes, increased 11% to $1.7 billion.

Financial Position

Liquidity was $887 million as of Dec. 31, 2025, which was $662 million higher than the company’s current targeted minimum level of $225 million. Total assets increased 3.6% to $36.3 billion as of Dec. 31, 2025, from the 2024-end.

Debt of $2.2 billion increased 6% year over year.

Total shareholders’ equity came in at $5.87 billion, up 15% year over year.

Share Repurchase and Dividend Update

For 2025, share repurchases and common stock dividends totaled $468 million. Assurant repurchased 1.4 million shares for $300 million and paid $168 million in dividends. 

From Jan. 1 through Feb. 6, 2026, Assurant repurchased approximately shares for $30 million. It now has $745 million remaining under the current repurchase authorization.

2026 Guidance

Assurant expects adjusted EBITDA, excluding reportable catastrophes, to be consistent with 2025 levels, or to increase mid-to-high single digits, excluding $113 million of favorable prior year development in 2025.

Global Lifestyle adjusted EBITDA is projected to increase in the high single digits with contributions from Connected Living and Global Automotive.

Global Housing adjusted EBITDA, excluding reportable catastrophes, is anticipated to decrease, with solid underlying growth when excluding $113 million of prior year reserve development in 2025.

Corporate and Other adjusted EBITDA loss is expected to approximate $140 million, reflecting organic investments in the Home Warranty business.

Adjusted earnings, excluding reportable catastrophes, per diluted share, are expected to be consistent with 2025 levels, or increase mid-to-high single digits when excluding $113 million of prior year reserve development in 2025. 

AIZ expects depreciation expense of approximately $175 million, interest expense of approximately $113 million, amortization of purchased intangible assets of approximately $70 million, and an effective tax rate of approximately 20% to 22%.

Capital deployment priorities are expected to focus on maintaining a strong financial position, supporting business growth by funding organic investments and M&A, and returning capital to shareholders through common stock dividends and share repurchases, subject to board approval.

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 Multi-Line Insurers

Markel Group Inc. MKL reported fourth-quarter 2025 net operating earnings per share of $34.45, which beat the Zacks Consensus Estimate by 34.7%. Moreover, the bottom line increased 68% year over year. MKL reported net income of $48.75 per share. Total operating revenues of $4 billion rose 7.6% year over year.

Earned premiums increased 7.6% year over year to $2.2 billion in the quarter. Net investment income increased 5.7% year over year to $257.6 million in the fourth quarter. The figure was higher than the Zacks Consensus Estimate of $240 million. Total operating expenses of Markel increased 5.5% year over year to $3.4 billion. MKL’s combined ratio improved 300 basis points (bps) year over year to 92.7 in the reported quarter.

Principal Financial Group, Inc.’s PFG fourth-quarter 2025 operating net income of $2.19 per share missed the Zacks Consensus Estimate by 1.8%. The bottom line increased 13% year over year. Total revenues jumped 9.2% year over year to $4.4 billion due to increased premiums and other considerations, fees, and other revenues and net investment income.

Total expenses increased 8.2% year over year to $3.9 billion  As of Dec. 31, 2025, Principal Financial’s assets under management amounted to $781 billion, which is included in the assets under administration of $1.8 trillion.

Everest Group, Ltd. EG reported a fourth-quarter 2025 operating income of $13.26 per share, missing the Zacks Consensus Estimate by 0.8%. The bottom line reversed the year-ago loss of $18.39. Total operating revenues of nearly $4.4 billion declined 4.6% year over year, reflecting lower premiums. The top line beat the Zacks Consensus Estimate by 2.7%.

Gross written premiums fell 8.6% year over year to $4.3 billion, as strong double-digit growth in specialty lines was offset by targeted reductions in certain casualty lines. Our estimate was $4.8 billion. Net investment income rose 18.8% year over year to $562 million. The figure exceeded both our estimate of $330.6 million and the Zacks Consensus Estimate of $456.4 million.

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