On Jul 8, 2013, the shares of
) hit a 52-week high of $51.97. The momentum was driven by strong
execution in its various segments as well as a favorable
operating performance from the past several quarters.
Assurant delivered earnings surprise in 3 of last 4 quarter
with an average beat of 36.8%.
Assurant has a diverse product base and distribution platform
with established presence in various niche markets, enabling it
to generate sustained solid operating earnings.
The company maintained an adequate risk-adjusted
capitalization, low debt-to-capital ratio and adequate interest
Going forward, we expect Assurant's Specialty line of business
to benefit from growth in multi-housing loans and higher volume
in lender-placed loan portfolios in the later half of 2013.
Also, the Solutions line business will see higher top-line
growth from increases in domestic as well as international
Moreover, the company has geared itself with product mix
changes in the health line of business to position itself for the
changed market as a result of Healthcare reform. We expect these
initiatives will bring long-term earnings growth from this
Assurant also boosts a strong balance sheet with efficient
capital management. It supports the company to increase dividend
payout and well as ensure steady buybacks which in turn drives
bottom-line earnings growth.
Valuation looks attractive for Assurant. The shares are
currently trading at a discount to the peer group average on a
forward price-to-earnings basis and a slight discount on a
price-to-book basis. The return on equity of is much higher than
the peer group average. Also, the year-to-date return from the
stock is 49.2%, above S&P's return of 15.0%.
Assurant carries a Zacks Rank #3 (Hold). Multi-line insurers
Enstar Group Limited.
CNO Financial Group Inc.
), among others, are worth taking a look. All these stocks
carry Zacks Rank #1 (Strong Buy).
ASSURANT INC (AIZ): Free Stock Analysis
CIGNA CORP (CI): Free Stock Analysis Report
CNO FINL GRP (CNO): Free Stock Analysis
ENSTAR GROUP LT (ESGR): Free Stock Analysis
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