Insurance services company Assurant (NYSE: AIZ) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 8% year on year to $3.16 billion. Its non-GAAP profit of $5.10 per share was 14.5% above analysts’ consensus estimates.

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Company Overview

With roots dating back to 1892 when it was founded by a Civil War veteran, Assurant (NYSE: AIZ) provides specialized insurance products and services that protect major consumer purchases like mobile devices, vehicles, homes, and appliances.

Revenue Growth

In general, insurance companies earn revenue from three primary sources. The first is the core insurance business itself, often called underwriting and represented in the income statement as premiums earned. The second source is investment income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from various sources such as policy administration, annuities, or other value-added services.

Regrettably, Assurant’s revenue grew at a sluggish 4.4% compounded annual growth rate over the last five years. This was below our standard for the insurance sector and is a tough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Assurant’s annualized revenue growth of 7.9% over the last two years is above its five-year trend, suggesting some bright spots. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Assurant reported year-on-year revenue growth of 8%, and its $3.16 billion of revenue exceeded Wall Street’s estimates by 1.4%.

Net premiums earned made up 84.3% of the company’s total revenue during the last five years, meaning Assurant barely relies on non-insurance activities to drive its overall growth.

Net premiums earned commands greater market attention due to its reliability and consistency, whereas investment and fee income are often seen as more volatile revenue streams that fluctuate with market conditions.

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Net Premiums Earned

When insurers sell policies, they protect themselves from extremely large losses or an outsized accumulation of losses with reinsurance (insurance for insurance companies). Net premiums earned are:

• Gross premiums - what’s ceded to reinsurers as a risk mitigation and transfer strategy

Assurant’s net premiums earned has grown at a 4.7% annualized rate over the last five years, worse than the broader insurance industry and in line with its total revenue.

When analyzing Assurant’s net premiums earned over the last two years, we can paint a similar picture as it recorded an annual growth rate of 5.7%. Since two-year net premiums earned grew slower than total revenue over this period, it’s implied that other line items such as investment income grew at a faster rate. These additional streams do play a key role in the bottom line, but their impact can vary. While some firms have excelled in consistently investing their float, sudden shifts in the fixed income and equity markets can heavily sway short-term performance.

In Q2, Assurant produced $2.59 billion of net premiums earned, up 5.9% year on year and in line with Wall Street Consensus estimates.

Key Takeaways from Assurant’s Q2 Results

We enjoyed seeing Assurant beat analysts’ EPS expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, its net premiums earned slightly missed. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 4.2% to $197 immediately after reporting.

Assurant may have had a good quarter, but does that mean you should invest right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.