Assurant, Inc., through its subsidiaries, provides specialized insurance products and related services in North America and internationally. It operates in four segments: Assurant Solutions, Assurant Specialty Property, Assurant Health, and Assurant Employee Benefits. The Assurant Solutions segment provides extended service contracts and warranties, preneed life insurance, credit insurance, and debt protection/debt deferment products. The Assurant Specialty Property segment provides creditor-placed homeowners insurance, such as fire and dwelling hazard insurance; and creditor-placed auto and renters products. The Assurant Health segment provides individual medical insurance, short-term medical insurance and student health insurance, and small employer group insurance products. The Assurant Employee Benefits segment provides group dental insurance, group disability insurance, and group term life insurance products. The company markets its products through financial institutions, mortgage lenders, manufactured housing lenders, manufactured housing retailers, independent specialty agents, direct distribution channels, sales force, and independent employee benefits advisors. It also operates in Canada, the United Kingdom, Denmark, Germany, Spain, Italy, Argentina, Brazil, Mexico, and Puerto Rico. Assurant was founded in 1969 and is based in New York, New York.

Financial Industry Analysis

WikiWealth.com Industry Description: The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises… Read More. Also see the Industry Analysis Home Page.

WikiWealth.com Industry Analysis: During economic recessions, consumers and businesses tend to cut back on expenses and investments to save money during tough economic times. This includes bank loans, raise equity or debt, general spending and many other financial activities. Less spending decreases business revenue and eventually decreases the stock prices of financial services companies. During economic recoveries, consumers have a greater desire to spend money and make business investments. Higher spending increases business revenue and eventually increases stock prices. During longer economic expansions, financial services may actually increase faster than the general market due to large investments by companies and mergers and acquisitions between companies. Consumers have more confidence in the stock market and increase stock investments and private business investments. Over-investment leads to higher inflation and higher interest rates, which make it harder to obtain money.

Financial services companies are also affected by interest rates. The return on money lent minus the expense of borrowing money equals the profits for many financial services companies. When interest rates increase, this raises the expense of borrowing money. Generally, interest rates increase near the end of the expansion phase of the business cycle to slow the potential for inflation. Interest rates are generally lowest during recessions, because inflation risk is lowest and the government wants to encourage business investments by making money relatively cheap to obtain.

¹ Investment potential (margin of safety) is a weighted average of the discounted cash flow analysis (DCF), the enterprise value (EV) market multiple analysis, and the Warren Buffett investment analysis. WikiWealth obtains 80% of their quantitative investment potential from fundamental investment analysis.
² The weighted average cost of capital (WACC) analysis for the industry is a broad representation of the WACC for each individual company. A sub-industry WACC analysis offers both stability and accuracy for each individual company.

WikiWealth.com Profit Analysis: The best way to profit from financial service stock investments is to find the most undervalued investments (Wall Street and Main Street buy ratings) during economic recessions. Those investments should be undervalued (see Wall Street Analysis on left side), and have high Main Street Common Sense investment ratings (see Main Street Analysis on right side). Interest rates are also lowest during this time period, which decreases the cost of borrowing money for financial service companies.

When an economic recovery occurs, financial stocks tend to outperform the general stock market, because consumers and businesses quickly resume spending on items such as cars or business loans they wanted, but resisted obtaining during tougher economic times. Eventually financial stocks become overvalued, because profits and stock prices increase past their fair values. During the last stages of an economic business cycle, just before a recession, it is best to sell financial stocks, because they are likely to decrease in price. Interest rates are highest at the end of recessions to fight inflation by making money for banks more expensive. Expensive (overvalued) stocks with low Main Street Common Sense ratings should be sold at any time to invest in better stocks. Two buys ratings are the best and two sell ratings are the worst possible stock investments. For more information on stock research ratings click here.

Investment Moats

Investment Moats are fundamental investing theories developed by Warren Buffett and adapted to the SWOT analysis. Investment moats are general characteristics that separate great investments from average stock investments. The wider the investment moat the better. Read more: Investment Moats. For company-specific investment moats: SWOT Analysis.

SWOT Strengths Increase Investor Moats: Below is a list of relevant industry investment characteristics, if any exist

SWOT Weaknesses Decrease Investor Moats: Below is a list of relevant industry investment characteristics, if any exist

Stock Price Triggers

Triggers were developed by WikiWealth.com to predict changes in stock price direction, which depend on events outside of the control of the company. In general, if SWOT opportunities are greater than SWOT threats, the stock price should raise; the opposite is also true. For more precise measures, examine each SWOT opportunity and threat, then rank them according to importance and timing. The more important the investment characteristic, the greater the impact on stock direction. The sooner a investment trigger may occur, the more influence it will have on stock price direction. Read more: Stock Price Triggers. For company-specific stock price triggers: SWOT Analysis.

SWOT Opportunities are Positive Stock Price Triggers: Below is a list of relevant industry investment characteristics, if any exist.

SWOT Threats are Negative Stock Price Triggers: Below is a list of relevant industry investment characteristics, if any exist.

Long Company Description (help)

Assurant is a Fortune 500 company headquartered in One Chase Manhattan Plaza, New York City. They are a provider of specialized insurance services.

The company has been in business since 1892.[1] In 1977 it incorporated as AMEV Holdings, Inc.

The company provides health insurance coverage for over 1 million policyholders nationwide.

Assurant's businesses provide a unique variety of products and services that assure opportunity, security and peace of mind for our customers. We provide creditor-placed homeowners insurance; manufactured housing homeowners insurance; debt protection administration; credit insurance; warranties and extended services contracts; individual health and small employer group health insurance; group dental insurance; group disability insurance; group life insurance; and pre-funded funeral insurance. Assurant's strategy is to manage a select portfolio of specialty businesses that are leaders in their markets.

Assurant's U.S. headquarters office, located in New York's financial district, provides strategic management and key resources for its U.S. operating companies, including asset management, employee benefits, tax, accounting, legal and communications. Assurant also has offices in Syracuse, New York; West Des Moines, Iowa; and in Woodbury, Minnesota; which provide service support for its operating companies in such areas as information technology, financial and human resources systems management, and New York State policy administration.

Milestones

2007
Assurant Expands Distribution in UK through acquisitions of Swansure and Centrepoint Insurance

Assurant Extends Exlclusive Distribution Agreement with SCI to 2013; Completes acquisition of Mayflower National Life Insurance Company

Assurant, Inc. (AIZ) added to S&P 500 stock index

2006
Assurant strengthens leadership position in creditor-placed homeowners by acquiring Safeco Financial Institution Solutions

Assurant Employee Benefits announces larger combined dental PPO network through network access agreement with Aetna

Assurant completes the sale of its equity interest in Private Health Care Systems, Inc. (PHCS)

2005
Fortis takes steps to divest its remaining interest in Assurant through secondary offering of common stock.

Assurant Solutions continues international growth by expanding its business operations into Mexico.

Acquisition of Recreational Finance, LLC, developer of finance and insurance technology for RV market.

2004
Assurant is born when Fortis, Inc. completes its initial public offering process and begins to trade on the New York Stock Exchange.

2003
Fortis announces its intention to sell Fortis, Inc. via an initial public offering. Fortis, Inc. begins process of becoming Assurant — a publicly traded company.

2001
Acquisition of Protective Life’s indemnity dental business and prepaid dental subsidiaries, positioning Assurant Employee Benefits as the leader in the voluntary (employee-paid) dental benefits market.

Fortis Financial Group, the company’s variable life insurance and annuity businesses and its proprietary mutual fund complex, is sold when variable products outgrow their specialty insurance status.

Acquisition of CORE, INC., a leading provider of employee absence management and disability reinsurance management services.

2000
Acquisition of American Memorial Life Insurance Company (now part of Assurant Preneed) expands the company's market share and management expertise in the preneed funeral insurance market.

1999
American Bankers Insurance Group in Miami, Florida, one of the two leading U.S. credit-related insurers, is acquired. American Bankers is combined with American Security Group to form Assurant Group (now Assurant Solutions).

1998
Acquisition of Insureco Inc., a mortgage market managing general agency and service provider, strengthening American Security Group (now Assurant Solutions).

Pierce National Life Insurance, a U.S. funeral insurance company, is acquired strengthening Assurant Preneed.

John Alden Financial Corporation, an independent provider of group health insurance and health-care services, is acquired, making Assurant Health the leading independent carrier in the small group health-care market.

1992
Time Insurance Company (now Assurant Health) celebrates its 100th birthday.

1991
Acquisition of Mutual Benefit Life Group division (now Assurant Employee Benefits).

AMEV Holdings is renamed Fortis, Inc. (now Assurant)

1990
AMEV/VSB of the Netherlands and AG, Belgium’s biggest insurer, join forces in the first cross-border European merger in the financial sector, creating Fortis. Fortis is a Latin word meaning "strong, steadfast and determined."

1984
Acquisition of Western Life, creating Fortis Financial Group.

1980
Acqusition of Interfinancial, composed of American Security Group (now Assurant Solutions) and United Family Life (now Assurant Preneed).

1977
N.V. AMEV of the Netherlands makes its first acquisition in the U.S., Time Insurance Company (now Assurant Health), via the U.S. holding company AMEV Holdings, Inc.

Assurant Products & Services

Assurant's businesses provide a unique variety of products and services that assure opportunity, security and peace of mind for our customers. We provide creditor-placed homeowners insurance; manufactured housing homeowners insurance; debt protection administration; credit insurance; warranties and extended services contracts; individual health and small employer group health insurance; group dental insurance; group disability insurance; group life insurance; and pre-funded funeral insurance.

Assurant Health

Assurant Health writes individual and short-term health insurance and small employer group health insurance to employer groups primarily of two to 40 employees. The company also offers health insurance plans to full-time college students.

Assurant Solutions

Assurant Solutions businesses develop, underwrite and market specialty insurance, extended service contracts and other risk management solutions in collaborative relationships with leading financial institutions, retailers, automobile dealers, utilities, funeral homes and other entities. Principal lines of business include debt protection administration, credit insurance, preneed life insurance, and warranties and extended service contracts on appliances, consumer electronics, automobiles, recreational vehicles and boats.

Assurant Specialty Property

Assurant Specialty Property businesses are leading providers of creditor-placed homeowners insurance, collateral protection programs, renters insurance and related outsourcing services. They develop, underwrite, market and administer specialty property and personal lines of insurance through collaborative relationships with leading home mortgage companies, manufactured home builders and dealers, auto finance companies, property management companies and managing general agents.

SWOT Analysis

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