On August 27, Assurant (NYSE:AIZ) released data showing that mobile trade-in programs handed $1.43 billion back to US consumers in the second quarter of 2026. The more telling detail is how old those phones were. For the first time, the average iPhone turned in through these programs was past its fourth birthday. People are holding on to their devices longer, and Assurant earns money on the repair, processing, and resale work that surrounds that habit. Here is what the numbers say about whether that matters.
Old Phones, Fresh Profits
Start with where Assurant sits in the chain. It works with wireless carriers, retailers and manufacturers to repair, sort and resell used devices, so an aging pool of phones is raw material for its business. The iPhone 13 was the most common trade-in, and the Galaxy S23 Ultra led among Android models. Smartwatches are joining in too, with the Apple Ultra 3 fetching an average of $341 in trade-in value during the quarter. Counterpoint Research analyst Emily Herbert pointed to steady appetite for refurbished phones as the reason those values are holding up. Assurant’s Biju Nair added that rising component costs make trade-ins more useful as new devices get pricier.
The financials back up the story. On August 4, Assurant reported that Global Lifestyle, the segment that houses its device work, grew adjusted EBITDA 21% in the second quarter. Connected Living, which covers mobile and device programs, rose 29%, or 22% after stripping out a $10 million benefit that is not part of its normal run rate. Management responded by raising its full-year outlook and now guides Global Lifestyle earnings up by a low double-digit percentage. It also expects to buy back shares toward the top of a $300 million to $350 million range.
Read the Fine Print
Now the caveats. The $1.43 billion is what consumers received for their old gadgets, not money that landed on Assurant’s income statement, and the announcement never says how much of that flow the company keeps. It is also a report published by the company itself, so it works better as a read on the environment than as a scorecard.
The earnings side has soft spots too. Global Housing profit jumped 28%, but part of that came from lighter catastrophe losses, $12.2 million versus $29.8 million a year earlier, and from claims running lighter than usual. Favorable reserve releases shrank by $12 million, and management expects Housing earnings, excluding catastrophes, to grow only modestly for the full year. That is why the raised outlook sits at mid-single digits, and reaches roughly 10% only if you set aside $71 million of smaller reserve releases. The Corporate and Other loss also widened on higher staff costs and investment in the Home Warranty business.
Cheap Price, Fewer Funds
Hedge fund holders of Assurant slipped to 31 from 33 in the prior quarter, a mild trim rather than a rush for the exits. Short sellers control just 3.76% of the float, so there is little organized betting against the stock. At 10.93 times forward earnings, as of September 18, the price assumes very modest growth, which sits oddly beside an outlook that was raised on August 4.
What Settles the Debate
The trade-in data places Assurant in a sensible spot as people keep their phones longer, and the quarterly results show the business is capitalizing. What stays unsettled is how much of the earnings gain is durable and how much came from mild claims and fewer catastrophes. Global Lifestyle sustaining its low double-digit pace would favor the optimists, while a Housing segment that stumbles once claims and catastrophes stop cooperating would favor the skeptics. Watching which segment carries the growth will tell you far more than any single trade-in report.
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