Yahoo Finance Assurant (AIZ) to Report Q1 Earnings: What's in the Cards?
Assurant, Inc. AIZ is slated to report first-quarter 2023 earnings on May 2, after the closing bell. AIZ delivered an earnings surprise in three of the last four quarters while missing in one, the average being 12.18%.
Factors to Note
Revenues are likely to have benefited from improved net earned premiums, higher fees and other income and net investment income. The Zacks Consensus Estimate for first-quarter revenues is pegged at $2.5 billion, suggesting growth of 2% from the year-ago quarter’s levels. We expect revenues of $2.5 billion in the to-be-reported quarter.
Net earned premiums are expected to have benefited from higher average insured values, premium rates and policies in-force, Global Automotive growth within Global Lifestyle as well as lender-placed gain within Global Housing, strong prior-period sales of vehicle service contracts.
We expect net earned premiums of $2.2 billion in the to-be-reported quarter. We expect fees and other income of $322.6 million in the to-be-reported quarter.
Net investment income has benefited from income from higher fixed maturity yields and asset levels and higher real estate related income. The Zacks Consensus Estimate for first-quarter net investment income is pegged at $98 million, up 13.9% from the year-ago reported number. We expect net investment income to be $97.5 million in the to-be-reported quarter.
The Global Lifestyle segment is expected to have benefited from mobile protection program growth in North America, higher Connected Living earnings, strong prior period sales in Global Automotive. The Zacks Consensus Estimate for first-quarter total revenues of this segment is pegged at $2 billion (in line with our estimate).
Global Automotive is likely to have benefited from higher net investment income, after client profit sharing, favorable loss experience in select domestic ancillary products and expansion across distribution channels.
Total benefits, losses and expenses might have escalated because of higher policyholder benefits, underwriting, selling, general and administrative expenses, goodwill impairment and interest expense.
Continued share buybacks are likely to have aided the bottom line in the to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter earnings is $2.32 per share, which suggests a decline of 38.1% from the prior-year reported figure.
Earnings for the first quarter are expected to grow year over year mainly driven by improved performance in Global Housing, as well as more modest growth in Global Lifestyle. We expect the bottom line to be $2.62 per share for the to-be-reported quarter.
What Our Quantitative Model Unveils
Our proven model does not predict an earnings beat for Assurant this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the odds of an earnings beat. This is not the case as you can see below.
Earnings ESP: Assurant has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.32. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Assurant, Inc. Price and EPS Surprise
Assurant, Inc. price-eps-surprise | Assurant, Inc. Quote
Zacks Rank: Assurant has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Some insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
RenaissanceRe Holdings Ltd. RNR has an Earnings ESP of +3.37% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at $7.34, indicating an increase of 109.7% from the year-ago reported figure.
RNR’s earnings beat estimates in two of the last four quarters and missed in the other two.
CNO Financial Group, Inc. CNO has an Earnings ESP of +5.65% and a Zacks Rank of 1 at present. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 62 cents, indicating an increase of 47.6% from the year-ago reported figure.
CNO’s earnings beat estimates in three of the last four quarters and missed in one.
ProAssurance Corporation PRA has an Earnings ESP of +41.89% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 15 cents, indicating an increase of 7.1% from the year-ago reported figure.
PRA’s earnings beat estimates in two of the last four quarters and missed in the other two.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report
Assurant, Inc. (AIZ) : Free Stock Analysis Report
RenaissanceRe Holdings Ltd. (RNR) : Free Stock Analysis Report
ProAssurance Corporation (PRA) : Free Stock Analysis Report
