Grade: B — Generally Healthy, Minor Concerns
Framework: Financial-sector metrics (segment profitability, ROE, goodwill concentration, specialty insurance metrics) + forensic accounting principles
Data: SEC EDGAR 10-K (Filed 2026-02-19, FY ended December 31, 2025) + Yahoo Finance
Auditor: PricewaterhouseCoopers LLP — Unqualified opinion
Note: Beneish M-Score and Altman Z-Score are not applicable to insurance/specialty protection companies due to fundamentally different financial statement structures.
One-line verdict: Assurant is a niche specialty insurer focused on connected living (mobile device protection), automotive protection, and housing insurance. FY2025 net income grew 15% to $872.7 million on total revenues of $12.8 billion. The company is operationally sound with strong cash flow conversion (CFFO/NI = 2.10), but carries goodwill and intangibles at 54% of equity — above the 50% threshold — a legacy of its acquisition-driven growth strategy. The screening engine flagged this as a fail, which is valid: over half of Assurant's equity is intangible. The underlying business, however, generates consistent cash and growing earnings.
| Metric | Result |
|---|---|
| Net Income | **$872.7M** (+15% YoY) |
| Total Revenues | **$12.8B** (+7.9% YoY) |
| CFFO/Net Income | **2.10x** — strong cash backing |
| Goodwill + Intangibles/Equity | **54%** — above 50% threshold |
| Cash Covers Debt | **$4.6B covers $2.2B** (2.1x) |
| Global Lifestyle Adjusted EBITDA | **$801.3M** |
| Accruals Ratio | **-2.6%** — conservative |
Business Segments: Connected Living Drives Growth
Per the 10-K, Assurant operates through two segments:
Global Lifestyle — FY2025 net earned premiums, fees and other income of $9.6 billion (up from $9.0B). Segment Adjusted EBITDA of $801.3 million (up from $773.4M).
Global Housing — Lender-placed homeowners insurance, renters insurance, manufactured housing.
Connected Living is the growth engine, with mobile device solutions alone representing over half the segment. This is a fee-driven, recurring revenue business tied to the global smartphone installed base — attractive from an earnings quality perspective.
Profitability and Cash Flow
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Net Income | $872.7M | $760.2M | +15% |
| Total Revenues | $12.8B | $11.9B | +7.9% |
| Net Earned Premiums | $10.5B | $9.8B | +7% |
| CFFO/NI | 2.10x | — | Strong |
| FCF/NI | 1.83x | — | Strong |
The 2.10x CFFO/NI ratio is exceptionally strong — Assurant generates over twice its reported net income in operating cash flow. This is driven by the prepaid nature of device protection plans and insurance premiums collected upfront. Accruals ratio of -2.6% confirms conservative accounting.
The filing notes the increase in net income was "primarily driven by higher earnings in Global Housing, a $38.7 million decrease in after-tax reportable catastrophes, higher earnings in Global Lifestyle and a $7.1 million after-tax decline in losses related to our non-core operations."
The Goodwill Question
Goodwill and intangibles of $3.2 billion represent 54% of shareholders' equity — the sole red flag in this report.
Assurant has grown through acquisitions of specialty protection businesses. The filing warns that "the failure of acquisition targets to achieve anticipated revenue and earnings levels could result in goodwill impairment charges" and that "an impairment of our goodwill or other intangible assets could materially adversely affect our results of operations and book value."
However, the goodwill changed only 1% YoY, indicating no material new acquisitions and no impairments. In August 2025, Assurant issued $300 million of 5.55% senior notes due 2036 and redeemed all $175 million of its 6.10% senior notes due 2026 — routine debt refinancing.
The 18-Point Screening
Revenue Quality
| # | Check | Result | Detail |
|---|---|---|---|
| A1 | DSO Change | PASS | DSO 239 days (reflects insurance float timing), -55 days YoY improvement |
| A2 | AR vs Revenue Growth | PASS | AR -12.1% vs. revenue +7.9% (AR declining while revenue grows — positive) |
| A3 | Revenue vs CFFO | PASS | Revenue +7.9%, CFFO +37.6% |
Cash Flow Quality
| # | Check | Result | Detail |
|---|---|---|---|
| C1 | CFFO vs Net Income | PASS | CFFO/NI = 2.10 |
| C2 | Free Cash Flow | PASS | FCF $1.6B, FCF/NI = 1.83 |
| C3 | Accruals Ratio | PASS | -2.6% — very conservative |
| C4 | Cash vs Debt | PASS | Cash $4.6B covers $2.2B debt |
Balance Sheet
| # | Check | Result | Detail |
|---|---|---|---|
| D1 | Goodwill + Intangibles | FAIL | $3.2B = 54% of equity — over 50% threshold |
| E1 | Acquirer FCF | PASS | FCF after acquisitions positive |
| E2 | Goodwill Surge | PASS | +1% YoY — stable |
Manipulation Score
| # | Check | Result | Detail |
|---|---|---|---|
| F1 | Beneish M-Score | N/A | Not applicable to specialty insurance companies |
| — | Altman Z-Score | N/A | Not applicable to specialty insurance companies |
Key Risks from the 10-K
1. Lender-Placed Insurance Regulatory Scrutiny
The filing discloses a completed regulatory settlement agreement (RSA) from 2017 "to resolve a targeted multistate market conduct examination focused on lender-placed insurance." The RSA "requires more frequent rate filings for lender-placed insurance" which "could result in downward pressure on premium rates." If regulators determine loss ratios are "too low," they can force rate reductions.
2. Client Concentration Risk
Assurant's Connected Living business depends on relationships with major wireless carriers and OEMs. Loss of a significant client relationship would directly impact the $5.4 billion Connected Living revenue base. The filing emphasizes competitive pressures and the risk that clients "may seek to self-insure or internalize certain services."
3. Argentina Currency Risk
The filing notes Argentina's economy is "classified as highly inflationary" and the functional currency of Argentine subsidiaries was changed to U.S. Dollars, resulting in remeasurement losses. While likely immaterial to the total, it signals exposure to emerging market currency volatility.
4. Catastrophe Exposure in Housing
The Global Housing segment's lender-placed homeowners insurance is directly exposed to hurricanes, wildfires, and other natural catastrophes. The filing notes a $38.7 million after-tax decrease in catastrophe losses in 2025 — but this is inherently volatile and could reverse in any given year.
Financial-Sector Grade Assessment
| Financial-Sector Metric | AIZ Result | Benchmark | Assessment |
|---|---|---|---|
| Net Income Growth | +15% | Positive | PASS |
| CFFO/NI | 2.10x | >0.8x | STRONG PASS |
| Goodwill/Equity | 54% | <50% | FAIL (marginal) |
| Debt Coverage | 2.1x | >1x | PASS |
| Accruals Ratio | -2.6% | Low | STRONG PASS |
| Revenue Growth | +7.9% | Positive | PASS |
Grade: B. Assurant delivers strong operational performance with excellent cash conversion and growing earnings. The sole blemish is goodwill at 54% of equity — marginally above the 50% threshold but stable (no surge, no impairments). The Connected Living segment provides a differentiated, recurring revenue stream tied to the global mobile device ecosystem. The B grade reflects the goodwill concentration risk; without it, this would be a clear A.
**Disclaimer**: This report is based on Assurant's FY2025 10-K filed with SEC EDGAR on February 19, 2026. This is NOT investment advice.
Data: SEC EDGAR 10-K + Yahoo Finance
Auditor: PricewaterhouseCoopers LLP (Unqualified opinion)
Fiscal year ended: December 31, 2025