Updated 4/13/25
Assurant, Inc. (AIZ) is a specialty insurer with a focused presence in mobile device protection, extended warranties, and housing-related risk management. Backed by consistent earnings growth, strong free cash flow, and a shareholder-friendly capital return strategy, the company has quietly delivered solid financial results over the past year. Led by CEO Keith Demmings and a seasoned executive team, Assurant has sharpened its operations while maintaining a strong balance sheet and a modest payout ratio. The stock has experienced some recent volatility but remains supported by resilient fundamentals and a healthy long-term outlook.
Recent Events
Assurant’s most recent earnings report painted a picture of a company that’s simply doing what it does best: running a tight ship. Revenue climbed just over 4% from the prior year, and earnings per share rose by more than 10%. That’s the kind of growth that doesn’t scream for attention but speaks volumes about execution and focus.
Net income came in strong at $760 million over the past twelve months. That’s backed by a healthy operating margin of just over 9%. It shows a business that’s not only growing but doing it efficiently. Assurant’s ability to maintain a 15%+ return on equity underscores its smart capital management. They’re not just holding capital—they’re putting it to work effectively.
Looking at the balance sheet, the numbers are clean. With $2.09 billion in cash and $2.15 billion in debt, they’re in a solid position. The debt-to-equity ratio sits at a modest 42%, and while the current ratio is on the low side at 0.44, it’s not a concern in this context. Insurance companies often run lean on short-term liquidity because of the predictable nature of their incoming premiums and investment income.
Assurant’s ability to keep a steady hand on expenses and boost margins is what gives it the flexibility to return value to shareholders, especially through dividends and buybacks. And it’s doing that without overextending itself, which is always a good sign.
Key Dividend Metrics
💸 Forward Annual Dividend Yield: 1.69%
📈 Five-Year Average Yield: 1.81%
💰 Trailing Dividend Rate: $2.96
🔒 Payout Ratio: 20.47%
🗓️ Ex-Dividend Date: February 3, 2025
📆 Next Dividend Pay Date: March 31, 2025
📊 Dividend Growth (5-Year CAGR): Steady, measured increases
📘 Book Value Per Share: $100.46
🧾 Cash Flow: $1.33 billion in operating cash flow and over $900 million in levered free cash flow
Dividend Overview
Assurant’s dividend may not be headline-grabbing, but it checks the boxes for income investors who prioritize consistency and safety. The forward yield of 1.69% is modest, though it aligns closely with the company’s long-term average. More importantly, the payout ratio sits at just a shade over 20%. That gives them plenty of breathing room to maintain and gradually increase the dividend over time.
What stands out is how well-covered the dividend is by earnings and free cash flow. With EPS clocking in at $14.46 and a dividend rate of $3.20, there’s ample cushion. Even if earnings dip temporarily, Assurant isn’t likely to be forced into difficult decisions on its dividend.
Cash flow is robust. Levered free cash flow came in at over $900 million, more than enough to fund the dividend and leave room for buybacks or reinvestment. The business doesn’t require aggressive capital expenditures to grow, so excess cash often finds its way back to shareholders.
Management’s approach to capital returns feels deliberate. They aren’t chasing yield to appeal to dividend chasers, nor are they being stingy. Instead, they’re threading the needle—paying a dividend that reflects the company’s underlying earnings power without putting future flexibility at risk.
Dividend Growth and Safety
While the current yield won’t blow anyone away, the real strength lies in how safe and sustainable it is. That’s what makes Assurant an appealing option for investors looking to build a portfolio that can weather different economic climates.
Over the past five years, dividend growth has been consistent. No big leaps, but no stagnation either. It’s the kind of pattern that fits well in a portfolio built around long-term income. There’s nothing erratic about it. Each increase is backed by growing earnings and strong cash generation.
The company’s overall risk profile is relatively low. With a five-year beta of just 0.52, the stock doesn’t tend to swing wildly with the market. That makes it a smoother ride for investors and fits the overall tone of its dividend policy—measured, steady, and dependable.
What’s more, Assurant has the financial strength to keep increasing the dividend even in a downturn. With a payout ratio below 25% and nearly a billion dollars in free cash flow, the math is comfortably in their favor. They have the dry powder to continue returning capital without compromising growth or balance sheet health.
For those who prioritize reliability over high yield, Assurant fits the bill. The stock might not deliver jaw-dropping income, but what it does offer is a solid foundation—an income stream that’s built on durable business performance and careful financial management.
Cash Flow Statement
Assurant’s cash flow profile over the trailing twelve months (TTM) reflects a company with growing operational efficiency and the financial strength to support its shareholder return strategy. Operating cash flow reached $1.33 billion, a clear step up from the prior year’s $1.14 billion, showing continued improvement in cash generation from the core business. Free cash flow came in at $1.11 billion, supported by relatively modest capital expenditures of $221 million. This strong free cash flow allows the company to cover its dividend comfortably while retaining flexibility for other capital allocation priorities.
On the investing side, Assurant spent $657 million, a modest increase year over year, likely tied to long-term investments or technology enhancements. Financing cash flow was negative at $477 million, driven largely by share repurchases totaling $307 million. Notably, Assurant avoided taking on new debt in this period and appears to be managing its capital structure conservatively. The end cash balance rose to $1.81 billion, up from $1.63 billion the year prior, signaling a healthy buffer that enhances the company’s financial resilience heading into future periods.
Analyst Ratings
Assurant has received a wave of analyst upgrades recently, pointing to increased confidence in the company’s earnings momentum and operational discipline. 📈 Piper Sandler moved the stock from Neutral to Overweight, maintaining a price target of $223. The upgrade came on the back of steady earnings performance and a leaner cost structure that’s improving margins. They noted that the company is now better positioned to capitalize on its core strengths in mobile device protection and extended service contracts.
🏦 Keefe, Bruyette & Woods also lifted their rating from Market Perform to Outperform, raising their price target from $212 to $230. Their reasoning focused on Assurant’s ability to surprise to the upside on earnings, as well as a more favorable outlook for its Global Housing segment, which had previously been a drag. With improved underwriting results and reduced volatility in claims, analysts are seeing clearer skies ahead for this business unit.
🎯 The consensus 12-month price target across covering analysts now stands around $234.17, with the range spanning from $223 on the low end to as high as $251. That suggests modest upside from current levels, driven largely by consistent cash flow, a strong capital return profile, and more stable performance across key business lines.
Earning Report Summary
Assurant closed out 2024 with a performance that quietly turned heads. It wasn’t a flashy quarter, but it was one that showed strength where it matters—steady earnings growth, solid cash flow, and a business model that continues to do its job without much drama.
Strong Finish for the Year
Earnings and earnings per share both posted double-digit gains for the second year in a row. That kind of consistency isn’t easy to come by, especially in insurance and service-heavy sectors. A big driver behind those numbers was the Global Housing segment. It brought in higher net earned premiums and saw a notable improvement in loss experience, meaning fewer surprises and more stability.
On the flip side, the Global Lifestyle business had a bit of a mixed showing. The mobile protection and extended service contract businesses held up well, but auto-related offerings faced some softness. Even so, it didn’t take away from the broader strength of the overall portfolio.
Cash Flow and Capital Discipline
What really stood out was how much cash the company generated. Operating cash flow hit $1.33 billion, and free cash flow landed just over $1.1 billion. That gave Assurant plenty of room to move—whether that’s reinvesting in the business, buying back stock, or paying out dividends. In fact, they returned $477 million to shareholders during the year, balancing share repurchases with a growing dividend.
Eyes on the Road Ahead
Looking forward, the company seems to be doubling down on growth through deeper partnerships and product innovation. Leadership is focused on expanding customer touchpoints and refining the user experience, especially in areas where technology and insurance intersect. There’s a quiet confidence in how they talk about 2025. Not overpromising, just sticking to a playbook that’s been working.
In all, Assurant’s most recent results tell a story of a company that knows its lane and stays in it. There’s comfort in that kind of predictability—especially for income investors who are looking for long-term dependability rather than short-term excitement.
Chart Analysis
Price Trends and Moving Averages
Looking at the one-year chart for AIZ, the stock spent much of the year in a steady uptrend, especially from mid-July through late December. That move was supported by a rising 50-day moving average, which crossed above the 200-day average in August and stayed that way until just recently. This kind of crossover typically reflects strong upward momentum, and in this case, it aligned with a meaningful price rally that pushed AIZ above $230 at its peak.
Over the past couple of months, though, there’s been a clear shift. The 50-day moving average has rolled over and started trending lower, now sitting just above the price. The stock also dipped sharply in early April, briefly breaking well below both moving averages before recovering slightly. While not a breakdown in the broader trend yet, it does suggest some loss of near-term strength after a strong multi-month run.
Volume and Market Activity
Volume has picked up notably on down days in recent weeks, which might be a sign of profit-taking or broader uncertainty. That spike in trading activity, especially when paired with price weakness, can indicate a temporary loss of confidence. There hasn’t been a dramatic volume surge to suggest panic, but it’s something worth keeping an eye on as the stock tries to stabilize.
Relative Strength Index (RSI)
The RSI tells an interesting story. For most of the past year, AIZ has stayed within the middle band of the RSI range, occasionally pushing into overbought territory, especially during the late fall rally. But recently, RSI has dipped closer to oversold levels and is now hovering in a neutral zone. That drop reflects the recent price pressure and might hint that the stock is consolidating after its strong stretch.
Final Take on the Trend
Overall, AIZ had a strong run through much of the past year, marked by a healthy uptrend and consistent support from its moving averages. The recent dip and reversal of the 50-day average suggest a pause or possible correction. Still, the price has not broken down in a significant way, and there’s early evidence of stabilization. The chart reflects a name that’s cooling off after a strong rally, not collapsing—showing signs of healthy digestion rather than breakdown.
Management Team
Assurant’s leadership is led by CEO Keith W. Demmings, who stepped into the role in early 2022 after more than two decades with the company. His deep roots in the business and hands-on experience across multiple divisions give him a strong foundation to guide the company forward. Demmings has been instrumental in refining Assurant’s focus and reinforcing its strategic direction. Alongside him, Chief Financial Officer Keith Meier and Chief Operating Officer Francesca Luthi bring solid expertise to the table. Both are veterans in finance and operations, and their steady hands have helped shape a more agile and responsive organization. Together, this leadership team has a clear sense of purpose and a consistent track record of disciplined execution.
Valuation and Stock Performance
Over the past year, AIZ has had its share of ups and downs, reflecting broader market sentiment and shifts in investor expectations. The stock reached a high of just over $230 last fall before easing back to around $190 more recently. Despite the pullback, Assurant continues to trade at a valuation that reflects solid underlying fundamentals. Its price-to-earnings ratios are still in reasonable territory compared to peers, and free cash flow remains strong. Investors seem to be weighing the company’s defensive characteristics and dependable earnings against broader macroeconomic pressures. While short-term movements have been choppy, the overall trend shows resilience.
The 50-day and 200-day moving averages crossed earlier in the year, which often signals a shift in momentum. A pullback from highs isn’t unusual after a strong run like Assurant had in the back half of 2023, and the current price action could be viewed as a consolidation phase rather than a reversal. Volatility is part of the equation, but the fundamentals remain intact, and the valuation doesn’t appear stretched.
Risks and Considerations
No business is without risk, and Assurant is no exception. One of the more specific areas to watch is its reliance on mobile device protection. That segment has grown significantly, but it’s also tied to hardware cycles, pricing dynamics, and customer upgrade behavior. If consumers start holding onto phones longer or manufacturers shift more protection offerings in-house, that could create some headwinds.
There’s also competition—both from traditional insurance providers and from tech-driven entrants offering more customized or subscription-based coverage models. Those models might appeal to younger, digital-native customers and slowly chip away at market share if Assurant doesn’t continue to innovate.
Regulatory environments are always shifting too, especially across global markets. Since Assurant operates internationally, changes in insurance regulations, data privacy rules, or tax laws could add friction in some areas. While these aren’t immediate red flags, they’re the kind of structural challenges that companies need to constantly adapt to.
Final Thoughts
Assurant is the type of company that doesn’t rely on flash. It focuses on delivering consistent, repeatable performance across economic cycles. That approach, combined with steady leadership and a strong balance sheet, makes it easy to understand why it’s stayed on solid footing even when the broader market gets choppy.
Its core businesses generate dependable cash flow, and the management team has shown a clear ability to allocate capital wisely—balancing reinvestment, buybacks, and dividends. That’s not always easy to find, especially in a market that often rewards short-term thinking.
While risks are always part of the picture, Assurant appears to be navigating them with care. Its measured approach to growth, emphasis on operational efficiency, and commitment to returning capital all point to a company built with the long term in mind. As the business evolves and adapts, the consistency it’s shown over time offers a sense of reliability that’s increasingly rare.