Sterne Agee Raises Estimates On Assurant, Inc. (AIZ)

Sterne Agee released a report on Thursday where it reiterated its “buy” rating on Assurant, Inc. AIZ. Analysts have also increased its price target of $44.00 on shares of AIZ. Shares began the day Thursday trading at $36.48. Sterne Agee wrote, “AIZ reported operating EPS of $1.35, well above our $1.21 and consensus $1.17. Results benefited from $0.04 of net positive items, including a $0.15 favorable Health settlement (related to 4Q09 jury verdict in CO), partially offset by $0.07 of severance costs and $0.04 of cats.” The analysts at Sterne Agee also added, “We raise 2010E EPS from $4.76 to $4.96 to reflect 2Q beat and lower share count. We raise 2011E EPS to $4.90 from $4.65 to reflect more sustainable Spec Prop earnings and lower share count.” Capital management of Assurant Inc. remains very active, as analysts noted, “Management repurchased 6.1m shares at a cost of $215m in 2Q10, bringing 1H10 buybacks to $9.5m shares (8% of beginning of year share count) at a cost of $324m (average cost of $34.10 per share). To-date in July, the company has repurchased another 0.9m shares at a cost of $33m, and we would expect the pace during hurricane season to remain low if not altogether cease."