Assurant’s (AIZ) second-quarter earnings were worse than
the Zacks Consensus Estimate, reflecting weak
performance of all its business segments, a trend that is
expected to remain in place for some time.
The
company’s leading position in specialty markets, solid
balance sheet and conservative investment approach
are the clear positives in Assurant s business model.
These positives are more than offset, however, by the
significant downside risks including the loss of a major
distribution or client relationship, higher-than-normal
catastrophe losses, greater healthcare competition,
irrational pricing, and deterioration in the manufactured
housing industry. Since the negatives outweigh the
positives, we have downgraded the shares to
Underperform from Neutral.
Zacks Investment Research
