Morgan Stanley has revised its price target for Assurant (AIZ, Financial), lowering it from $220 to $200 while maintaining an Equal Weight rating on the company's shares. This adjustment comes as the firm revises its earnings projections due to several challenging factors affecting the broader property and casualty insurance sector.
The updated forecasts indicate slightly reduced growth expectations for Assurant's Commercial Lines, driven by macroeconomic uncertainties impacting organic growth. Meanwhile, marginally higher core loss ratios are anticipated for Personal Lines, potentially affected by tariff-related issues.
Additionally, an increase in catastrophic events and overarching macroeconomic concerns are impacting the outlook for reinsurers. These elements contribute to the downward adjustment of earnings per share (EPS) estimates for the first quarter and the year 2025.
Morgan Stanley's overall rationale for the revised price targets reflects a more cautious equity market sentiment and looming recession fears. These revisions also account for the broader implications of reduced EPS forecasts across the industry.
