Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

Assurant Aided By Catastrophe Free 2013, But Regulations Still Present Challenges

Executive summary:

  • Specialty insurer Assurant faces regulatory headwinds in their property insurance segment and a rapidly changing market in the health insurance segment.
  • The company recently reported strong earnings and book value growth on the back of a benign natural disaster environment in 2013.
  • While the stock is only trading 10% above book value, earnings look set to decline this year.
  • This and the overall uncertainty in two important segments make the stock a 'Hold'.

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Last August when I originally wrote about insurance company Assurant (NYSE:AIZ), I stressed my concerns over the expensive and misguided new regulations being put in place that would burden the industry and ultimately consumers. While 2013 proved to be a better year...

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