AIZ Q2 Earnings Beat Estimates on Lifestyle and Housing Strength

AIZ Revenue Growth Reflects Broad-Based Gains

Net earned premiums increased 6.9% year over year to $2.77 billion. The figure was higher than our estimate of $2.71 billion. Fees and other income climbed 19.6% year over year to $554.6 million, reflecting continued expansion across the company’s protection and service programs. The figure was higher than our estimate of $500.3 million.

Net investment income advanced 10.6% year over year to $142.4 million. The figure was lower than our estimate of $153.1 million. Total segment net earned premiums, fees and other income grew 8.9% to $3.32 billion, supported by gains in both operating segments.

Assurant Lifestyle Earnings Rise on Connected Living

Global Lifestyle revenues increased 9.5% year over year to $2.67 billion. The figure was higher than our estimate of $2.61 billion. Net earned premiums, fees and other income rose 9.4% year over year to $2.57 billion, primarily due to higher global supply-chain volumes, device protection programs, extended service contracts and financial services contributions. The figure was higher than our estimate of $2 billion.

Adjusted EBITDA increased 21.4% year over year to $244.4 million. The figure was higher than our estimate of $196.2 million. Connected Living adjusted EBITDA surged 29.3% year over year to $170.4 million, including $10 million of favorable non-run-rate benefits. Excluding those benefits, earnings rose 22%, driven by global mobile growth and financial services.

Global Automotive adjusted EBITDA increased 6.3% year over year to $74 million, aided by growth within global partnerships. The number of protected mobile devices rose 6.2% to 69 million, while serviced devices increased 32.1% to 7.4 million.

AIZ Housing Benefits From Better Loss Experience

Global Housing revenues increased 7% year over year to $783.4 million. The figure was higher than our estimate of $748.1 million. Net earned premiums, fees and other income advanced 7.2% year over year to $747.8 million, primarily reflecting Homeowners growth in specialty products and lender-placed insurance, along with lower catastrophe reinsurance costs. The figure was higher than our estimate of $709.3 million.

Adjusted EBITDA rose 28.2% year over year to $274.8 million. The figure was higher than our estimate of $217.4 million. Excluding reportable catastrophes, adjusted EBITDA increased 17.5% to $287 million, mainly due to favorable non-catastrophe loss experience and lower-than-typical claims frequency.

Reportable catastrophe losses declined to $12.2 million from $29.8 million. The Global Housing combined ratio improved 560 basis points year over year to 69.8%, while the loss ratio decreased 620 basis points year over year to 33.6%. Results were partly offset by $12 million of lower favorable prior-period reserve development.

Assurant Faces Higher Corporate Expenses

Total benefits, losses and expenses increased 7.2% year over year to $3.08 billion. The figure was higher than our estimate of $3 billion. Cost of sales jumped 30.8% to $302.6 million, while general expenses increased 10.2% to $668.8 million.

Corporate and Other recorded an adjusted EBITDA loss of $40 million, wider than the year-ago loss of $29.8 million. The deterioration reflected higher employee-related expenses and organic investments supporting the Home Warranty business, partially offset by increased investment income from a larger asset base.

Despite the expense increase, the pre-tax income margin expanded 180 basis points to 11.3%. The net income margin improved 130 basis points to 9%, supported by stronger operating earnings and lower catastrophe losses.

AIZ Maintains a Strong Liquidity Position

Holding company liquidity totaled $911 million as of June 30, 2026, exceeding the company’s minimum target by $686 million. Operating segments paid $235 million in dividends to the holding company during the quarter.

Assurant repurchased about 310,000 shares for $75 million and paid $48 million in common stock dividends. From July 1 through July 31, the company bought back an additional 108,000 shares for $30 million, leaving $544 million under its authorization.

Total assets were $36.08 billion, while stockholders’ equity increased to $6.10 billion from $5.87 billion at the end of 2025. The debt-to-total-capital ratio improved 90 basis points year over year to 26.6%.

Assurant Raises Its 2026 Earnings Outlook

Assurant now expects adjusted EBITDA, excluding reportable catastrophes, to increase by a mid-single-digit percentage in 2026. Excluding the impact of lower favorable prior-year reserve development, underlying growth is expected to approximate 10%.

Global Lifestyle adjusted EBITDA is projected to rise by a low-double-digit percentage, supported by Connected Living and Global Automotive. Global Housing adjusted EBITDA, excluding catastrophes, is expected to grow modestly.

Adjusted earnings per share, excluding reportable catastrophes, are also expected to increase by a mid-single-digit percentage. Corporate and Other’s adjusted EBITDA loss is now projected at about $145 million. Management expects share repurchases toward the upper end of its previously announced $300-$350 million range.

AIZ Zacks Rank

Assurant currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Multi-Line Insurers

Everest Group, Ltd. EG reported second-quarter 2026 operating earnings of $14.85 per share, which beat the Zacks Consensus Estimate by 1.8%. The bottom line declined 14.5% year over year. Operating revenues of $3.96 billion decreased 11.8% year over year and missed the consensus estimate by 2.9%. Gross written premiums declined 19.4% year over year to $3.77 billion. Our estimate was $3.8 billion. Net premiums earned fell 12.6% to $3.49 billion, reflecting lower business volumes. Our estimate was $3.6 billion.

Total claims and expenses fell 10.8% year over year to $3.28 billion. Our estimate was $3.4 billion. Incurred losses and loss-adjustment expenses declined 12.2%, while commission, brokerage, taxes and fees decreased 7.5%. Other underwriting expenses fell 11.4%.

Principal Financial Group, Inc.’s PFG second-quarter 2026 operating earnings of $2.50 per share beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 16% year over year. Revenues rose 6.4% year over year to $3.99 billion, which missed the consensus mark of $4.09 billion by 2.4%. Total expenses increased 7.6% year over year to $3.41 billion. Benefits, claims and settlement expenses rose 8.3% to $1.99 billion, while operating expenses increased 8.1% to $1.40 billion.

Non-GAAP operating earnings climbed 12% to $547 million. Excluding significant variances, operating earnings advanced 13% to $528.7 million. Net income attributable to PFG declined 1% to $403.4 million.

Markel Group Inc. MKL reported second-quarter 2026 adjusted operating income of $19.5 per share, which missed the Zacks Consensus Estimate by 10.4%. The bottom line deteriorated 25% year over year. Total operating revenues were $4 billion, up 0.1% year over year, surpassing the Zacks Consensus Estimate by 8.6%.

Earned premiums decreased 3% year over year to $2 billion in the second quarter. The figure was lower than the Zacks Consensus Estimate of $2.1 billion. Net investment income increased 11.4% year over year to $256.1 million in the second quarter. The figure was lower than the Zacks Consensus Estimate of $262 million. Total operating expenses of Markel Group increased 3.7% year over year to $3.6 billion.

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