Assurant (AIZ) Stock Forecast & Price Target

Assurant Inc has demonstrated strong performance, with its property management renters' business experiencing double-digit growth for 12 consecutive quarters, contributing an annualized premium increase of $50 million. The company's Connected Living segment continues to thrive, showing approximately 14% revenue growth and a 21% increase in EBITDA, while its home business exhibits greater underwriting leverage compared to traditional insurers, enhancing return-on-equity metrics. Furthermore, the long-term outlook is bolstered by anticipated increased demand for auto warranties and a market shift towards appreciating Assurant's stable returns amid a challenging home insurance environment.

Assurant has faced significant margin pressure, with its EBITDA margins declining from the mid-20s range to the high teens over nearly a decade, compounded by a 17% reduction in TTM EBITDA within its auto segment from 2022. Additionally, Assurant's Global Auto revenue has seen year-over-year declines of approximately 3% in 2023 and 2% in 2024, indicating ongoing financial difficulties within its key segments. The company also faces risks related to catastrophe events that could further strain its home insurance profitability, alongside challenges in maintaining competitiveness against industry leaders such as Asurion.