We are upgrading our recommendation on the shares of Assurant (AIZ) on the back of higher earnings expectations led by share repurchases and positive results from its Solutions and Employee Benefits segments. The recent dividend increase also places our optimism on Assurant s solid cash generation capabilities.
Its first quarter earnings were substantially ahead of the Zacks Consensus Estimate, benefiting from higher premiums from the Employee Benefits and Specialty segments, partially offset by lower investment income.
However, its Specialty unit is expected to be sluggish in the near term, but we believe its conservative investment portfolio and robust capital management will lift the stock above its peers in the long term.Zacks Investment Research
