Assurant Q1 Earnings Top Estimates, Revenues & Premiums Rise Y/Y

Assurant, Inc. AIZ reported first-quarter 2025 net operating income of $3.39 per share, which beat the Zacks Consensus Estimate by 19.4%. The bottom line, however, declined 29% year over year.Quarterly results benefited from higher net earned premiums, fees and other income across both the Global Housing and Global Lifestyle segments. It was partially offset by higher expenses, poor results in Connected Living and wider catastrophe losses. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Total revenues increased 7% year over year to $3.1 billion, driven by higher net earned premiums and fees and other income. The top line beat the Zacks Consensus Estimate by 1.2%.Net investment income was down 1.5% year over year to $124.8 million. The figure was lower than our estimate of $133.8 million.Assurant, Inc. Price, Consensus and EPS Surprise Assurant, Inc. price-consensus-eps-surprise-chart | Assurant, Inc. QuoteTotal benefits, loss and expenses increased 11.7% to $2.8 billion, mainly due to higher policyholder benefits, underwriting and selling, general and administrative expenses. The figure matched our estimate.Segmental Performance of AIZRevenues at Global Housing increased 14.9% year over year to $690.5 million, primarily driven by higher net earned premiums, fees and other income and net investment income. The figure was higher than our estimate of $655.2 million.Adjusted EBITDA declined 42% year over year to $112.4 million, primarily due to $143.8 million of higher pre-tax reportable catastrophes, of which approximately $125 million were from the California wildfires, inclusive of estimated recoveries from subrogation. The figure was higher than our estimate of $107 million.Revenues at Global Lifestyle rose 4.9% year over year to $2.4 billion. The increase was primarily driven by higher net earned premiums, fees and other income. The figure was higher than our estimate of $2.3 billion.Adjusted EBITDA of $197.8 million decreased 5% year over year, driven primarily by lower results in Connected Living. Underlying growth was driven by Connected Living, including contributions from a new financial services program. It was partially offset by lower results in mobile.Global Automotive results were mostly stable, as lower investment income and the impact of unfavorable foreign exchange were mostly offset by improved loss experience. The figure was higher than our estimate of $195.7 million.Adjusted EBITDA loss at Corporate & Other was $28 million, narrower than the year-ago quarter’s adjusted EBITDA loss of $29.5 million, primarily due to lower third-party expenses.Financial Position of AIZLiquidity was $501 million as of March 31, 2025, which was $276 million higher than the company’s current targeted minimum level of $225 million.Total assets decreased 0.09% to $35 billion as of March 31, 2025, from the end of 2024.Total shareholders’ equity came in at $5.2 billion, up 2.5% year over year.Assurant’s Share Repurchase and Dividend UpdateIn the first quarter, Assurant repurchased shares for $62 million. From April 1 through May 2, 2025, the company repurchased shares for $25 million. It now has $287 million remaining under the current repurchase authorization.AIZ’s total dividends amounted to $41 million in the reported quarter.Assurant Provides Guidance for 2025Assurant expects adjusted EBITDA, excluding reportable catastrophes6, to increase modestly.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, excluding reportable catastrophes, per diluted share growth rate to increase modestly. The company now expects depreciation expense of approximately $160 million and continues to expect an effective tax rate of approximately 20% to 22%, interest expense of approximately $107 million and amortization of purchased intangible assets of approximately $65 million.AIZ Zacks RankAssurant 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 InsurersMGIC Investment Corporation MTG reported first-quarter 2025 operating net income per share of 75 cents, which beat the Zacks Consensus Estimate by 13.6%. Moreover, the bottom line increased 15.4% year over year. Total operating revenues were $305 million, which increased 0.7% year over year on higher net investment income and net premiums earned. The top line, however, missed the consensus mark by 1.5%.Insurance in force increased 1% from the prior-year quarter to $293.8 billion. The Zacks Consensus Estimate was $297 billion. Our estimate was $296.8 billion. Persistency — the percentage of insurance remaining in force from one year prior — was 84.7% as of March 31, 2025, down from 85.7% in the year-ago quarter. Net premiums written increased 0.7% year over year to $235 million. The figure was lower than our estimate of $238.4 million.Prudential Financial, Inc. PRU reported first-quarter 2025 adjusted operating income of $3.29 per share, which beat the Zacks Consensus Estimate by 2.5%. The bottom line rose 7.8% year over year. Total revenues of $13.4 billion declined 38% year over year and missed the Zacks Consensus Estimate by 7.7%. The decrease in revenues was due to lower premiums.Total benefits and expenses amounted to $18.9 billion, which declined 41% year over year in the first quarter. This increase was due to lower insurance and annuity benefits, interest expense and operating expenses. The figure was higher than our estimate of $13 billion.Radian Group RDN reported first-quarter 2025 adjusted operating income of 99 cents per share, which beat the Zacks Consensus Estimate by 4.2%. The bottom line decreased 3.9% year over year. Operating revenues remained flat year over year at $306 million and missed the Zacks Consensus Estimate by 6.4%. Net premiums earned were $234 million, flat year over year. Net investment income decreased 0.9% year over year to $68.6 million.MI New insurance written decreased 17.7% year over year to $9.5 billion. Primary mortgage insurance in force increased 1.2% year over year to an all-time high of $274.2 billion as of March 31, 2025. Persistency — the percentage of mortgage insurance in force that remains in the company’s books after a 12-month period — was 83.7% as of March 31, 2025, contracting 60 basis points year over year.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 MGIC Investment Corporation (MTG): Free Stock Analysis Report Prudential Financial, Inc. (PRU): Free Stock Analysis Report Assurant, Inc. (AIZ): Free Stock Analysis Report Radian Group Inc. (RDN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks