Atlanta, GA – Assurant, an insurance company trading on the New York Stock Exchange under the symbol AIZ, has been quietly making waves in niche markets with its focus on recurring revenue. Despite being relatively unknown, Assurant has shown consistent long-term growth through prudent operational execution and a dedication to shareholder returns through share buybacks and dividends. With a track record of 20 consecutive years of annual dividend increases and a solid safety profile, Assurant remains an appealing choice for investors seeking dividend growth in the long term.

Originally founded 132 years ago and later spun off from Fortis, a Dutch financial conglomerate, Assurant has established itself as a prominent player in the insurance industry. The company’s operations are divided into two main segments: Global Housing and Global Lifestyle. Global Housing primarily offers various types of homeowners’ insurance, while Global Lifestyle focuses on insurance for mobile devices, electronics, appliances, and vehicles. With total revenues exceeding $11 billion in the last twelve months, Assurant has maintained a steady growth trajectory.

Assurant’s revenue and earnings per share have demonstrated consistent growth since 2017. Despite the occasional volatility due to acquisitions and divestments, the company’s strategic focus on its Global Housing and Global Lifestyle segments has proven beneficial. The recent second-quarter results exceeded expectations, driving a surge in the share price. Assurant’s commitment to further growth in 2024, coupled with strategic acquisitions like iSmash, bodes well for its future performance.

On the dividend front, Assurant boasts a 20-year streak of dividend increases, although the recent rise in share price has slightly lowered the dividend yield. The company’s dividend growth rate has averaged around 4% to 4.5% in the past five years, with a modest payout ratio of approximately 18%. Assurant’s dividend safety is further reinforced by its strong financial position, supported by an A+ rating from A.M. Best and solid credit ratings from major agencies.

Despite facing challenges related to insuring mobile devices and potential catastrophic losses from severe weather events, Assurant’s competitive advantage lies in its focus on niche markets and capital-light insurance lines. The company’s consistent growth in EPS, aided by recurring revenue streams and favorable investment income trends, positions it as a strong contender in the insurance sector.

In conclusion, Assurant’s undervalued stock, historical growth trends, and optimistic analyst projections paint a promising picture for investors. While no company is immune to risks, Assurant’s prudent management and strategic focus on sustainable growth make it a compelling option for those looking for a reliable long-term investment in the insurance industry.