Improved pricing, exposure growth, solid retention, favorable renewals, reinsurance agreements and accelerated digitalization in the second quarter are likely to have benefited property and casualty insurance industry players such as Everest Re Group Limited , Cincinnati Financial Corporation (CINF - Free Report) and Arch Capital Group Ltd. (ACGL - Free Report) , which are due to report tomorrow. However, an active catastrophe level is likely to have weighed on the upside.
Their premiums are likely to have benefited from continued improvement in pricing, solid retention and exposure growth. An active catastrophe environment accelerated the policy renewal rate and aided in better pricing in the second quarter, though the magnitude was lower.
Better pricing, reinsurance arrangements, portfolio repositioning and prudent underwriting practice are likely to drive an improvement in underwriting results. The estimated insured losses in the United States from catastrophes in the second quarter could be more than $4 billion per analysts at Goldman Sachs, published in Reinsurance News.
Underwriting profitability is expected to have benefited from reinsurance covers, favorable reserve development and solid capital level.
Increased travel across the world is likely to have induced higher auto premiums. A stronger mortgage market favored mortgage insurance premiums. Economic growth and a low unemployment rate are likely to have aided commercial insurance and group insurance.
A larger investment asset base and alternative investments in private equity, hedge funds, and real estate among others are expected to have aided net investment income. An improving interest rate environment added to the upside. The second quarter itself saw two rate hikes.
Accelerated digitalization is expected to have saved costs, thus aiding margins.
A solid capital position aided insurers in pursuing strategic mergers and acquisitions to sharpen their competitive edge, build on a niche, expand geographically, and diversify their portfolio.
Let’s take a sneak peek into how the abovementioned insurers are poised prior to their second-quarter 2022 earnings on Jul 27.
According to the Zacks model, a company needs the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Everest Re’s premium growth is likely to have benefited from an increase in reinsurance business and insurance business, positive impact from the movement of foreign exchange rates and high renewal retention. Improved pricing and a not-so-active catastrophe environment are likely to have aided underwriting profitability and combined ratio. (Read more: Everest Re to Report Q2 Earnings: What's in the Offing?)
The Zacks Consensus Estimate for Everest Re’s second-quarter earnings per share of $8.96 indicates a 38.8% decrease from the year-ago quarter reported figure. The company has an Earnings ESP of +3.08% and a Zacks Rank 5. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
RE surpassed estimates in two quarters of 2021 while missing in the other two. This is depicted in the chart below:
Cincinnati Financial Corporation’s property casualty premiums are likely to have gained from premium growth initiatives, higher new business written premiums and higher standard lines new business. Lower losses from catastrophes, price increases, ongoing initiatives to improve pricing precision and loss experience related to claims and loss control practices are likely to have boosted underwriting profit. (Read more What Awaits Cincinnati Financial Earnings Season?)
The Zacks Consensus Estimate for Cincinnati Financial’s second-quarter earnings per share of $1.05 indicates a 41.3% decrease from the year-ago quarter reported figure. The company has an Earnings ESP of +2.86% and a Zacks Rank 3
Cincinnati Financial’s earnings outpaced estimates in the last four reported quarters. The same is depicted in the chart below:
The Zacks Consensus Estimate for Arch Capital Group’s second-quarter earnings per share of $1.09 per share indicates an increase of 9% from the year-ago reported figure. The consensus estimate for revenues is pegged at $2.4 billion, indicating an increase of 6% year over year. Premiums are likely to have benefited from new business opportunities, rate increases, growth in existing accounts and growth in Australian single premium mortgage insurance.
Arch Capital has an Earnings ESP of -0.25% and a Zacks Rank #3.
ACGL surpassed estimates in three of the last four quarters while missing in one. This is depicted in the chart below:
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Improved pricing, exposure growth, solid retention, favorable renewals, reinsurance agreements and accelerated digitalization in the second quarter are likely to have benefited property and casualty insurance industry players such as Everest Re Group Limited , Cincinnati Financial Corporation (CINF - Free Report) and Arch Capital Group Ltd. (ACGL - Free Report) , which are due to report tomorrow. However, an active catastrophe level is likely to have weighed on the upside.
Their premiums are likely to have benefited from continued improvement in pricing, solid retention and exposure growth. An active catastrophe environment accelerated the policy renewal rate and aided in better pricing in the second quarter, though the magnitude was lower.
Better pricing, reinsurance arrangements, portfolio repositioning and prudent underwriting practice are likely to drive an improvement in underwriting results. The estimated insured losses in the United States from catastrophes in the second quarter could be more than $4 billion per analysts at Goldman Sachs, published in Reinsurance News.
Underwriting profitability is expected to have benefited from reinsurance covers, favorable reserve development and solid capital level.
Increased travel across the world is likely to have induced higher auto premiums. A stronger mortgage market favored mortgage insurance premiums. Economic growth and a low unemployment rate are likely to have aided commercial insurance and group insurance.
A larger investment asset base and alternative investments in private equity, hedge funds, and real estate among others are expected to have aided net investment income. An improving interest rate environment added to the upside. The second quarter itself saw two rate hikes.
Accelerated digitalization is expected to have saved costs, thus aiding margins.
A solid capital position aided insurers in pursuing strategic mergers and acquisitions to sharpen their competitive edge, build on a niche, expand geographically, and diversify their portfolio.
Let’s take a sneak peek into how the abovementioned insurers are poised prior to their second-quarter 2022 earnings on Jul 27.
According to the Zacks model, a company needs the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Everest Re’s premium growth is likely to have benefited from an increase in reinsurance business and insurance business, positive impact from the movement of foreign exchange rates and high renewal retention. Improved pricing and a not-so-active catastrophe environment are likely to have aided underwriting profitability and combined ratio. (Read more: Everest Re to Report Q2 Earnings: What's in the Offing?)
The Zacks Consensus Estimate for Everest Re’s second-quarter earnings per share of $8.96 indicates a 38.8% decrease from the year-ago quarter reported figure. The company has an Earnings ESP of +3.08% and a Zacks Rank 5. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
RE surpassed estimates in two quarters of 2021 while missing in the other two. This is depicted in the chart below:
Cincinnati Financial Corporation’s property casualty premiums are likely to have gained from premium growth initiatives, higher new business written premiums and higher standard lines new business. Lower losses from catastrophes, price increases, ongoing initiatives to improve pricing precision and loss experience related to claims and loss control practices are likely to have boosted underwriting profit. (Read more What Awaits Cincinnati Financial Earnings Season?)
The Zacks Consensus Estimate for Cincinnati Financial’s second-quarter earnings per share of $1.05 indicates a 41.3% decrease from the year-ago quarter reported figure. The company has an Earnings ESP of +2.86% and a Zacks Rank 3
Cincinnati Financial’s earnings outpaced estimates in the last four reported quarters. The same is depicted in the chart below:
The Zacks Consensus Estimate for Arch Capital Group’s second-quarter earnings per share of $1.09 per share indicates an increase of 9% from the year-ago reported figure. The consensus estimate for revenues is pegged at $2.4 billion, indicating an increase of 6% year over year. Premiums are likely to have benefited from new business opportunities, rate increases, growth in existing accounts and growth in Australian single premium mortgage insurance.
Arch Capital has an Earnings ESP of -0.25% and a Zacks Rank #3.
ACGL surpassed estimates in three of the last four quarters while missing in one. This is depicted in the chart below:
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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