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The Zacks Analyst Blog Highlights: Primerica, Amerisafe, Employers Holdings and Unum Group
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For Immediate Release
Chicago, IL – November 24, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Primerica, Inc. (PRI - Free Report) , Amerisafe, Inc. (AMSF - Free Report) , Employers Holdings, Inc. (EIG - Free Report) and Unum Group (UNM - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
4 Solid Insurance Stocks to Hit High Spots in Q4 Bull Market
Despite the volatile operating environment, with the occurrence of natural calamities, regulatory changes, Federal Reserve’s decision as to when hike the interest rate again, there have been quite a few insurance companies which have delivered better-than-expected results in the third quarter of 2017.
Even though the aforementioned challenges are anticipated to impact the upcoming quarter, we remain optimistic about the operational performance of such insurance companies in the near term.
We will discuss some driving factors that should help insurance companies to perform better in the impending quarter, raising optimism among investors.
Rising Interest Rates — A Much Awaited Boon to Insurers
If we focus on the life insurance industry, we can identify its connection with interest rates, given the high sensitivity of the players’ business models to interest rates. Therefore, life insurance industry’s heavy dependence on investment income will benefit most companies from the rising interest rate environment. Thus, rising interest rates as well as increase in bond yields will provide a required relief to insurers to maintain margins.
Although the Federal Reserve has left the interest rates unchanged (following the Federal Open Market Committee’s meeting on Sep 20, 2017) ranging between 1% and 1.25%, the life insurers are still looking forward to another interest rate hike this year, indicated by policymakers at the meeting. Interestingly, the Fed committee also expects to raise interest rates thrice in 2018. Hence, the overall industry pins hope on the investment income growth in the immediate term. This in turn might also help strengthen its market position.
A progressing rate environment will lessen the burden on life insurers’ investment income, boosting their earnings. This will additionally, accelerate the insurance companies’ overall rise in the future.
Other Aspects Likely to Boost Future Performance
Continued growth in premiums and a better control over underwriting expenses are anticipated to lend a substantial boost to life insurers’ income in the quarter ahead. The individual life insurance premiums, which witnessed modest growth over a considerable period of time, will likely continue the trend with rising demand, driven by an improving job market and the aging population (for retirement savings).
Interestingly, life insurers are increasingly moving toward redesigned and re-priced products with potential to enhance their liability profiles and profitability in the upcoming quarter.
Moreover, stronger corporate bonds and improving real estate market might help curtail the credit-related investment losses. Also, bettering economy and higher inflation induced bonds look to yield good returns to investors. Life insurers are expected to gain from this favorable trend if it continues in the long run. In fact, a flourishing economy indicates more disposable income with people opting for more insurance coverage.
Further, the demand for life insurance is estimated to improve and fortify on the back of customers’ need for greater safety in a volatile financial environment. Per a recent report by the worldwide insurance association, Life Insurance Management Research Association (LIMRA), minimum 34% of Americans are likely to buy life insurance in 2017. This will in fact encourage demand for life insurance with the industry reaping benefits from such an upside.
Key Picks
Despite challenging market conditions and evolving customer demands, insurers might gain from improved interest rates and an improving economy that are capable of yielding profits through underlying strength and business modification.
We zeroed in on four insurers that hold promise to deliver favorable results, banking on a solid price performance and a favorable Zacks Rank backed by positive estimate revisions.
Duluth, GA-based Primerica, Inc. distributes financial products to middle income households in the United States and Canada. The stock has seen the Zacks Consensus Estimate for current-year earnings per share being revised 2.7% upward to $5.36 and 3.1% to $6.07 for 2018 over the last 60 days. This is reflected through the company’s Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Primerica have rallied 21.6% quarter to date, outperforming the industry’s rise of 10.3% and substantially lying ahead of the S&P 500 index’s 3.5% gain.
DeRidder, LA-based Amerisafe, Inc. offers workers compensation insurance in the United States. The Zacks Consensus Estimate for earnings per share moved up 3.9% to $3.22 for 2017 and 1.3% to $3.07 for 2018 over the last 60 days. This is reflected through the company’s same bullish Zacks Rank of 2.
Shares of Amerisafe have increased 12.3% quarter to date compared with the industry’s increase 5.1% and substantially outperforming the S&P 500 index’s gain of 3.5%.
Reno, NV-based Employers Holdings, Inc. operates in the commercial property and casualty insurance industry primarily in the United States. The stock has seen the Zacks Consensus Estimate for current-year earnings per share being moved 2.6% upward to $2.39 and 2.1% to $2.40 for 2018 over the last 60 days. The Zacks #2 Ranked player reflects this improvement.
Shares of Employer Holdings have climbed 8.6% quarter to date, coming in above the industry’s gain of 5.1% and substantially outperforming the S&P 500 index’s gain of 3.5%.
Chattanooga, TN-based Unum Group provides group and individual disability insurance products and services, primarily in the United States and the United Kingdom. The Zacks Consensus Estimate for earnings per share moved up 1.7% to $4.24 for 2017 and 1.1% to $4.46 for 2018 over the last 60 days. The #2 Ranked stock represents this rise.
Shares of Unum Group have grown 5.4% quarter to date compared with the industry’s 5.1% increase and significantly outperforming the S&P 500 index’s 3.5% gain.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Primerica, Amerisafe, Employers Holdings and Unum Group
For Immediate Release
Chicago, IL – November 24, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Primerica, Inc. (PRI - Free Report) , Amerisafe, Inc. (AMSF - Free Report) , Employers Holdings, Inc. (EIG - Free Report) and Unum Group (UNM - Free Report) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday’s Analyst Blog:
4 Solid Insurance Stocks to Hit High Spots in Q4 Bull Market
Despite the volatile operating environment, with the occurrence of natural calamities, regulatory changes, Federal Reserve’s decision as to when hike the interest rate again, there have been quite a few insurance companies which have delivered better-than-expected results in the third quarter of 2017.
Even though the aforementioned challenges are anticipated to impact the upcoming quarter, we remain optimistic about the operational performance of such insurance companies in the near term.
We will discuss some driving factors that should help insurance companies to perform better in the impending quarter, raising optimism among investors.
Rising Interest Rates — A Much Awaited Boon to Insurers
If we focus on the life insurance industry, we can identify its connection with interest rates, given the high sensitivity of the players’ business models to interest rates. Therefore, life insurance industry’s heavy dependence on investment income will benefit most companies from the rising interest rate environment. Thus, rising interest rates as well as increase in bond yields will provide a required relief to insurers to maintain margins.
Although the Federal Reserve has left the interest rates unchanged (following the Federal Open Market Committee’s meeting on Sep 20, 2017) ranging between 1% and 1.25%, the life insurers are still looking forward to another interest rate hike this year, indicated by policymakers at the meeting. Interestingly, the Fed committee also expects to raise interest rates thrice in 2018. Hence, the overall industry pins hope on the investment income growth in the immediate term. This in turn might also help strengthen its market position.
A progressing rate environment will lessen the burden on life insurers’ investment income, boosting their earnings. This will additionally, accelerate the insurance companies’ overall rise in the future.
Other Aspects Likely to Boost Future Performance
Continued growth in premiums and a better control over underwriting expenses are anticipated to lend a substantial boost to life insurers’ income in the quarter ahead. The individual life insurance premiums, which witnessed modest growth over a considerable period of time, will likely continue the trend with rising demand, driven by an improving job market and the aging population (for retirement savings).
Interestingly, life insurers are increasingly moving toward redesigned and re-priced products with potential to enhance their liability profiles and profitability in the upcoming quarter.
Moreover, stronger corporate bonds and improving real estate market might help curtail the credit-related investment losses. Also, bettering economy and higher inflation induced bonds look to yield good returns to investors. Life insurers are expected to gain from this favorable trend if it continues in the long run. In fact, a flourishing economy indicates more disposable income with people opting for more insurance coverage.
Further, the demand for life insurance is estimated to improve and fortify on the back of customers’ need for greater safety in a volatile financial environment. Per a recent report by the worldwide insurance association, Life Insurance Management Research Association (LIMRA), minimum 34% of Americans are likely to buy life insurance in 2017. This will in fact encourage demand for life insurance with the industry reaping benefits from such an upside.
Key Picks
Despite challenging market conditions and evolving customer demands, insurers might gain from improved interest rates and an improving economy that are capable of yielding profits through underlying strength and business modification.
We zeroed in on four insurers that hold promise to deliver favorable results, banking on a solid price performance and a favorable Zacks Rank backed by positive estimate revisions.
Duluth, GA-based Primerica, Inc. distributes financial products to middle income households in the United States and Canada. The stock has seen the Zacks Consensus Estimate for current-year earnings per share being revised 2.7% upward to $5.36 and 3.1% to $6.07 for 2018 over the last 60 days. This is reflected through the company’s Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Primerica have rallied 21.6% quarter to date, outperforming the industry’s rise of 10.3% and substantially lying ahead of the S&P 500 index’s 3.5% gain.
DeRidder, LA-based Amerisafe, Inc. offers workers compensation insurance in the United States. The Zacks Consensus Estimate for earnings per share moved up 3.9% to $3.22 for 2017 and 1.3% to $3.07 for 2018 over the last 60 days. This is reflected through the company’s same bullish Zacks Rank of 2.
Shares of Amerisafe have increased 12.3% quarter to date compared with the industry’s increase 5.1% and substantially outperforming the S&P 500 index’s gain of 3.5%.
Reno, NV-based Employers Holdings, Inc. operates in the commercial property and casualty insurance industry primarily in the United States. The stock has seen the Zacks Consensus Estimate for current-year earnings per share being moved 2.6% upward to $2.39 and 2.1% to $2.40 for 2018 over the last 60 days. The Zacks #2 Ranked player reflects this improvement.
Shares of Employer Holdings have climbed 8.6% quarter to date, coming in above the industry’s gain of 5.1% and substantially outperforming the S&P 500 index’s gain of 3.5%.
Chattanooga, TN-based Unum Group provides group and individual disability insurance products and services, primarily in the United States and the United Kingdom. The Zacks Consensus Estimate for earnings per share moved up 1.7% to $4.24 for 2017 and 1.1% to $4.46 for 2018 over the last 60 days. The #2 Ranked stock represents this rise.
Shares of Unum Group have grown 5.4% quarter to date compared with the industry’s 5.1% increase and significantly outperforming the S&P 500 index’s 3.5% gain.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.