Pitching Stock: Assurant, Inc. (NYSE: AIZ)

On Monday, Assurant, Inc stock identified change of 58.45% away from 52-week low price and recently located move of -2.85% off 52-week high price. AIZ stock has been recorded 1.37% away from 50 day moving average and 15.48% away from 200 day moving average. Moving closer, we can see that shares have been trading -0.77% off 20-day moving average. The Financial sector company, Assurant, Inc. noticed change of 0.21% to $130.42 along volume of 441944 shares in recent session compared to an average volume of 398.04K.

Assurant, Inc. (AIZ) recently stated results for the third quarter ended September 30, 2019.

Third Quarter 2019 Consolidated Results

Net loss was $59.5M, or $0.96 per share, contrast to third quarter 2018 net income of $48.3M, or $0.76 per diluted share. The loss was driven by charges related to the $124.8M reduction in fair value of Iké Asistencia (collectively, “Iké”) based on the company’s planned review process and the intent to now sell the business. In addition, the consolidated net loss included expenses from refinancing debt at a lower interest rate. This was partially offset by $30.9M of lower reportable catastrophes in Global Housing and mobile profitable growth in Global Lifestyle.

Net operating income1 increased to $104.8M, contrast to third quarter 2018 net operating income of $67.4M. The increase was primarily Because of earnings expansion in Global Lifestyle and lower reportable catastrophes within Global Housing.

Not Including reportable catastrophes, net operating income2 for third quarter 2019 totaled $141.1M, contrast to $135.1M in the third quarter 2018. Results increased Because of growth in mobile, primarily from increased subscribers, partially offset by a charge of $9.9M for an accounting adjustment in Global Preneed, as well as lower volumes in lender-placed insurance.

Net operating income per diluted shareincreased to $1.69, contrast to third quarter 2018 net operating income of $1.06 per diluted share. The calculation excludes the effect of 2.7M shares of dilutive securities related to the mandatory convertible preferred stock, which were anti-dilutive for the period. Not Including reportable catastrophes, net operating income increased to $2.28 per diluted share, contrast to $2.12 per diluted share in third quarter 2018.

Net earned premiums, fees and other income from the Global Housing, Global Lifestyle and Global Preneed sections totaled $2.31B, a raise of 9 percent from $2.11B in third quarter 2018. This reflected organic growth in both Connected Living and Global Automotive.

Holding Company Liquidity Position

Holding company liquidity was about $385M as of September 30, 2019, $160M above the company’s current targeted minimum level of $225M.

Dividends paid to the holding company in the third quarter 2019 from Assurant operating sections totaled $217M.

In addition to quarterly interest and Corporate expenses, the company had $67M of cash outflows including $39M related to debt refinancing at a lower interest rate and $28M primarily for a contingent payment related to a block of flood policies purchased in 2016.

Share repurchases and ordinary and preferred dividends totaled $107M in third quarter 2019. Dividends to shareholders totaled $42M, including $37M in ordinary stock dividends and $5M in preferred stock dividends. Assurant repurchased 0.5M shares of ordinary stock for $65M. From October 1 through November 1, 2019, the company repurchased an additional 137,000 shares for about $17M, with $578M remaining under the current repurchase authorization.

AIZ’s shares are at 2.67% for the quarter and driving a 44.49% return over the course of the past year and is now at 45.82% since this point in 2018. There are 60.77M shares outstanding and 60.21M shares are floated in market. Right now, the stock beta is 0.49.

 

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