Assurant (AIZ) Financials

Assurant (NYSE:AIZ) Financial Summary and Trends Analysis

Assurant has demonstrated steady financial performance over the most recent years, with notable trends in revenue growth, expenses, and cash flow dynamics. Below is a detailed analysis of key financial statement components from Q3 2022 through Q1 2025.

• Consistent Revenue Growth: Total revenue has grown from $2.55 billion in Q3 2022 to $3.07 billion in Q1 2025, driven largely by premiums earned which increased from approximately $2.2 billion to $2.56 billion over the period.
• Increasing Net Income: Net income from continuing operations rose from $7.3 million in Q3 2022 to $146.6 million in Q1 2025, showing improving profitability.
• Solid Earnings Per Share (EPS) Growth: Diluted EPS increased from $0.14 in Q3 2022 to $2.83 in Q1 2025, indicating strong earnings growth relative to shares outstanding.
• Growing Cash From Operations: Net cash from operating activities surged from $330.5 million in Q3 2023 to $392.4 million in Q1 2025, underpinning operational strength and ability to generate cash.
• Controlled Share Count: Weighted average diluted shares outstanding remained relatively stable, decreasing slightly from roughly 54 million in 2022 to about 51.7 million in Q1 2025, supporting EPS growth.
• Elevated Interest Expense: Interest expense related to long-term debt remains around $26-27 million per quarter recently, slightly up from prior years, impacting net interest income negatively.
• Stable Dividend Payments: Cash dividends per share increased modestly from $0.68 in late 2022 to $0.80 per share in Q1 2025, signaling consistent returns to shareholders.
• Rising Operating Expenses: Other operating expenses have increased, with $2.08 billion recorded in Q1 2025, up from $1.87 billion in Q2 2023, which may weigh on margins.
• Insurance Claims Impact: Property and liability insurance claims have risen, hitting $779.7 million in Q1 2025, higher than the $670 million in Q4 2024, which could pressure profitability.
• Negative Net Interest Income/Expense: Net interest income has been negative recently, notably a $26.8 million expense in Q1 2025, reflecting the cost of debt servicing and reducing operating income.

Balance Sheet Notes:

• Total assets have remained stable around $33-$35 billion in recent quarters, with a large portion in trading securities (~$7.8 billion in Q1 2025) and deferred acquisition costs (~$10 billion), reflecting core insurance operations.
• Total liabilities increased slightly to approximately $29.8 billion in Q1 2025, driven by unearned premiums liabilities and other long-term obligations.
• Total common equity has grown steadily, reaching about $5.23 billion by Q1 2025, supporting financial strength.

Cash Flow Highlights:

• Investing activities have been consistently negative, investing hundreds of millions quarterly into securities and capital expenditures, reflecting ongoing business reinvestment.
• Financing activities show continued share repurchases and dividend payments, totaling over $100 million in outflows per quarter, indicating active shareholder value management despite substantial cash outflows.
• The company maintains positive net cash from operating activities, supporting its financing and investing needs without excessive reliance on external funding.

Summary: Assurant’s financials suggest strong operational performance reflected in rising revenues, net income, and EPS, supported by steady cash flows from operations. However, increased claims expenses and operating costs pose margin pressures. The company’s balance sheet remains robust with stable assets and growing equity. Investors should watch how the company manages expenses and interest costs amid these industry dynamics.