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P&C Insurance Stocks' Q1 Earnings on Apr 27: RE, AXS & ACGL
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The property and casualty insurance industry players are likely to have benefited from improved pricing, exposure growth, a not-so-active catastrophe level, solid retention, favorable renewals, reinsurance agreements, product redesign, and accelerated digitalization in the first quarter. These include Everest Re Group Limited , Axis Capital Holdings Limited (AXS - Free Report) and Arch Capital Group Ltd. (ACGL - Free Report) .
Premiums are likely to have benefited from improved pricing, strong retention and exposure growth. An active catastrophe environment last year had accelerated the policy renewal rate and aided in better pricing in the first quarter, though the magnitude was lower. Reinsurance covers, favorable reserve development and solid capital level are likely to have aided underwriting profitability.
Better pricing, reinsurance arrangements, portfolio repositioning and prudent underwriting practice are likely to drive an improvement in underwriting results. Per Aon, in the first quarter of 2022, insurance and reinsurance industry losses from catastrophes totaled $14 billion or about $13 billion in economic losses.
While 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.
Accelerated digitalization is expected to have expedited business operations and saved costs, thus aiding margins.
Banking on the solid capital position, insurers pursued strategic mergers and acquisitions to sharpen their competitive edge, build on a niche, expand geographically, and diversify their portfolio to have a compelling product offering.
Let’s take a sneak peek into how the following insurers are poised prior to their first-quarter 2022 earnings on Apr 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 Q1 Earnings: What's in Store?)
The Zacks Consensus Estimate for Axis Capital Holdings’ earnings per share of $1.74 indicates an increase of 79.4% from the year-ago reported figure. The consensus estimate for revenues is pegged at $1.4 billion, indicating an increase of 14% year over year.
Solid performance across its Specialty Insurance, Reinsurance, plus Accident and Health segments are likely to aid quarterly results. Premiums are expected to have benefited from improved portfolio mix, rate increase, expansion of digital capabilities to create new business growth in desirable smaller accounts.
AXS has an Earnings ESP of 0.00% and a Zacks Rank #3.
Axis Capital’s earnings outpaced estimates in all the four quarters of 2021. The same is depicted in the chart below:
Axis Capital Holdings Limited Price and EPS Surprise
The Zacks Consensus Estimate for Arch Capital Group’s earnings per share of $1.13 per share indicates an increase of 91.5% from the year-ago reported figure. The consensus estimate for revenues is pegged at $2.3 billion, indicating an increase of 14.2% 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 0.00% and a Zacks Rank #3.
ACGL’s earnings outpaced estimates in all the four quarters of 2021. The same is depicted in the chart below:
Image: Bigstock
P&C Insurance Stocks' Q1 Earnings on Apr 27: RE, AXS & ACGL
The property and casualty insurance industry players are likely to have benefited from improved pricing, exposure growth, a not-so-active catastrophe level, solid retention, favorable renewals, reinsurance agreements, product redesign, and accelerated digitalization in the first quarter. These include Everest Re Group Limited , Axis Capital Holdings Limited (AXS - Free Report) and Arch Capital Group Ltd. (ACGL - Free Report) .
Premiums are likely to have benefited from improved pricing, strong retention and exposure growth. An active catastrophe environment last year had accelerated the policy renewal rate and aided in better pricing in the first quarter, though the magnitude was lower. Reinsurance covers, favorable reserve development and solid capital level are likely to have aided underwriting profitability.
Better pricing, reinsurance arrangements, portfolio repositioning and prudent underwriting practice are likely to drive an improvement in underwriting results. Per Aon, in the first quarter of 2022, insurance and reinsurance industry losses from catastrophes totaled $14 billion or about $13 billion in economic losses.
While 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.
Accelerated digitalization is expected to have expedited business operations and saved costs, thus aiding margins.
Banking on the solid capital position, insurers pursued strategic mergers and acquisitions to sharpen their competitive edge, build on a niche, expand geographically, and diversify their portfolio to have a compelling product offering.
Let’s take a sneak peek into how the following insurers are poised prior to their first-quarter 2022 earnings on Apr 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 Q1 Earnings: What's in Store?)
The Zacks Consensus Estimate for Everest Re’s earnings per share of $8.32 indicates a 28.2% increase from the year-ago quarter reported figure. The company has an Earnings ESP of 0.00% and a Zacks Rank 3. 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:
Everest Re Group, Ltd. Price and EPS Surprise
Everest Re Group, Ltd. price-eps-surprise | Everest Re Group, Ltd. Quote
The Zacks Consensus Estimate for Axis Capital Holdings’ earnings per share of $1.74 indicates an increase of 79.4% from the year-ago reported figure. The consensus estimate for revenues is pegged at $1.4 billion, indicating an increase of 14% year over year.
Solid performance across its Specialty Insurance, Reinsurance, plus Accident and Health segments are likely to aid quarterly results. Premiums are expected to have benefited from improved portfolio mix, rate increase, expansion of digital capabilities to create new business growth in desirable smaller accounts.
AXS has an Earnings ESP of 0.00% and a Zacks Rank #3.
Axis Capital’s earnings outpaced estimates in all the four quarters of 2021. The same is depicted in the chart below:
Axis Capital Holdings Limited Price and EPS Surprise
Axis Capital Holdings Limited price-eps-surprise | Axis Capital Holdings Limited Quote
The Zacks Consensus Estimate for Arch Capital Group’s earnings per share of $1.13 per share indicates an increase of 91.5% from the year-ago reported figure. The consensus estimate for revenues is pegged at $2.3 billion, indicating an increase of 14.2% 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 0.00% and a Zacks Rank #3.
ACGL’s earnings outpaced estimates in all the four quarters of 2021. The same is depicted in the chart below:
Arch Capital Group Ltd. Price and EPS Surprise
Arch Capital Group Ltd. price-eps-surprise | Arch Capital Group Ltd. Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.