raised its quarterly dividend by one cent to 15 cents, a 7 percent increase from the previous dividend of 14 cents per share. The dividend will be payable June 9 to stockholders of record as of May 26.

Q: What are the other business lines?

Witmer: It issues warranty-service contracts on appliances, consumer electronics and the like, another attractive business. It also has a nice employee-benefit business, which focuses on helping small and mid-sized businesses provide insurance for employees. It has a health-insurance business for individuals and small businesses. Trailing earnings per share is more than $6, so the stock trades for less than five times earnings. Even if you take out what may be excess earnings from the home-insurance business, which we estimate would bring earnings down to $4.25, the stock trades for seven times earnings. But the high level of earnings could persist for many years. Plus, Assurant has other growth initiatives, such as the auto business, and some international opportunities. Book value was more than $31 a share as of Sept. 30, after taking write-downs on the portfolio. Assurant traded above 70 per share in the past, but 50 is a reasonable target in the next year or so.

At 68, the shares have rallied 161% since Assurant was spun off from Fortis in 2004, but there's still more upside as the housing market continues to weaken: May's foreclosure filings were up 48% from a year ago, according to RealtyTrac. Today, the stock trades at 10.4 times projected 2008 earnings -- no pricier than the 10.6 times commanded by its slumping peer group. At the least, Assurant is a good hedge against further housing weakness, especially for bottom-fishers combing the financials' murky depths.

17%

Goldman Sachs said it is downrgading Assurant (AIZ) to Neutral from Buy based on tougher comps and increased vulnerability to castrophe risk, ahead of hurricane season. Note stock's strong performance since October, driven by increases in specialty property policies. Price target lowered to $75 from $77.

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Assurant (AIZ) was upgraded from Hold to Buy, Keybanc said. $65 price target. Company deserves a premium multiple to its peers, given its above-average 16.5% ROE. Estimates also raised, to reflect higher returns in the speciality property division.

Goldman said it is upgrading Assurant (AIZ) to Buy from Neutral based on robust earnings from special property and better 2008 results from Solutions segment. Also expect management to restart buyback program next year. Price target raised to $66 from $64.

Assurant (AIZ) was upgraded to Buy at Merrill Lynch with a $64 price target. Estimates are above consensus, based on a more favorable outlook for the specialty property business.