Four-Year-Old iPhones Are Hitting Trade-In Bins, and Assurant (AIZ) Is Ready

On August 27, Assurant (NYSE:AIZ) released data revealing that mobile trade-in programs returned $1.43 billion to US consumers during the second quarter of 2026. The most striking finding is that the average age of iPhones being traded in surpassed four years for the first time. Consumers are retaining their devices for longer, and Assurant profits from the repair, processing, and resale activities associated with this trend.

Here's a breakdown of how this matters. Assurant operates in the device trade-in ecosystem by collaborating with wireless carriers, retailers, and manufacturers to repair, sort, and resell used devices. The iPhone 13 was the most frequently traded-in model, followed by the Galaxy S23 Ultra among Android devices. Smartwatches, like the Apple Ultra 3, are also contributing, with an average trade-in value of $341 in the quarter.

Analyst Emily Herbert from Counterpoint Research attributes the steady demand for refurbished phones to the stable prices of these values. Assurant's Chief Financial Officer, Biju Nair, pointed out that increasing component costs make trade-ins more appealing as new devices become more expensive. Assurant's financials corroborate the story.

In August 4, the company reported that the Global Lifestyle segment, encompassing its device business, experienced a 21% increase in adjusted EBITDA in the second quarter. The Connected Living segment, which includes mobile and device programs, grew by 29%, or 22% after excluding a $10 million benefit that isn't part of its normal trend.

Management responded by increasing their full-year guidance, raising Global Lifestyle earnings by a low double-digit percentage. They also plan to repurchase shares within a $300 million to $350 million range. However, there are some caveats. The $1.43 billion figure represents the amount consumers received for their old gadgets, not the money that entered Assurant's income statement.

The announcement doesn't disclose how much of this flow the company retains. The earnings report has some inconsistencies. Global Housing profit increased by 28%, but a portion of this growth was due to reduced catastrophe losses, dropping from $29.8 million to $12.2 million, and lower-than-usual claims. Favorable reserve releases also shrank by $12 million.

Assurant expects Housing earnings, excluding catastrophes, to grow modestly in the full year. This explains why the raised outlook is modest, around 10% if smaller reserve releases are excluded. The Corporate and Other loss widened due to higher staff costs and investments in the Home Warranty business. Hedge fund ownership of Assurant decreased slightly to 31 from 33 in the previous quarter, indicating a cautious shift rather than a significant departure.

Short sellers hold just 3.76% of the company's float, meaning there's limited organized betting against the stock. With a current valuation of 10.93 times forward earnings as of September 18, the stock appears to assume modest growth, which seems contradictory to the optimistic outlook announced on August 4. The trade-in data suggests that Assurant is well-positioned, as people are keeping their phones longer, and the quarterly results demonstrate the business capitalizing on this trend.

However, the sustainability of this growth is uncertain. If the Global Lifestyle segment maintains its low double-digit earnings growth, it would favor the optimists. Conversely, if the Housing segment struggles as claims and catastrophes decrease, it would appeal more to skeptics. It's essential to monitor which segment drives growth to gain better insight than relying on a single trade-in report.

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Please note that the information presented here is for informational purposes only and does not constitute investment advice.