Assurant, Inc. AIZ is expected to register an improvement in its top line but a decline in its bottom line when it reports first-quarter 2025 results on May 6, after the closing bell.

The Zacks Consensus Estimate for AIZ’s first-quarter revenues is pegged at $3.05 billion, indicating 5.6% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at $3.00 per share. The Zacks Consensus Estimate for AIZ’s first-quarter earnings has moved up 2.5% in the past 30 days. The estimate suggests a year-over-year decline of 37.2%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

What the Zacks Model Unveils for AIZ

Our proven model predicts an earnings beat for Assurant this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the chances of an earnings beat.

Earnings ESP: Assurant has an Earnings ESP of +1.53%. This is because the Most Accurate Estimate of $3.05 is pegged higher than the Zacks Consensus Estimate of $3.00. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank:  AIZ carries a Zacks Rank #3 at present.

Factors Likely to Shape Q1 Results of AIZ

Solid performance at the Global Housing segment, as well as growth in Global Lifestyle, is likely to have aided the first-quarter performance of Assurant.

Revenues are likely to have benefited from improved net earned premiums and higher net investment income. 

Net earned premiums are expected to have benefited from higher premiums in the Global Housing and Global Lifestyle segments.

The Zacks Consensus Estimate for first-quarter net earned premiums, fees and other income is pegged at $2.5 billion. We expect net earned premiums to be $2.5 billion in the to-be-reported quarter. We expect fees and other income to increase 2.7% to $396.2 million in the first quarter.

Net investment income is likely to have gained from higher yields and assets in fixed maturity securities and short-term investments. The upside is likely to have been partially offset by lower income in other investments. The Zacks Consensus Estimate for first-quarter net investment income is pegged at $134 million. We expect net investment income to be $133.8 million.

Global Housing is expected to have been driven by Homeowners top-line growth, including an improvement in policies in-force and higher average premiums within lender-placed, as well as growth across various specialty Homeowners products. The Zacks Consensus Estimate for the segment’s first-quarter revenues is pegged at $676 million, suggesting growth of 12.5% from the year-ago quarter’s level. We expect the segment’s revenues to be $655 million.

Global Lifestyle is likely to have benefited from contributions from newly launched trade-in programs and device protection programs. The Zacks Consensus Estimate and our estimate for the segment’s first-quarter revenues are both pegged at $2.3 billion. 

Total benefits, losses and expenses might have escalated because of higher underwriting and selling, general and administrative expenses. We expect total expenses to be $2.7 billion. 

Continued share buybacks are likely to have aided the bottom line in the to-be-reported quarter.

Other Stocks to Consider

Here are some other finance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:

Root, Inc. ROOT has an Earnings ESP of +25.84% and sports a Zacks Rank of 1 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 45 cents, indicating an increase of 207% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

ROOT’s earnings beat estimates in each of the last four quarters.

Primerica, Inc. PRI has an Earnings ESP of +0.46% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $4.77, indicating an increase of 21.9% from the year-ago reported figure. 

PRI’s earnings beat estimates in three of the last four reported quarters and missed in one.

Lemonade, Inc. LMND has an Earnings ESP of +3.40% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2025 loss per share is pegged at 94 cents, indicating a decline of 40.3% from the year-ago reported figure. 

LMND’s earnings beat estimates in each of the last four quarters.

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Assurant, Inc. (AIZ) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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