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W.R. Berkley (WRB) to Report Q2 Earnings: What's in the Cards?

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W.R. Berkley Corporation (WRB - Free Report) is slated to report second-quarter 2022 earnings on Jul 21 before market open. The insurer delivered an earnings surprise in each of the last four quarters, the average being 27.1%.

Factors to Consider 

Gross premiums written in the second quarter of 2022 are likely to have benefited from strong performing short-tail lines, professional liability, commercial auto, other liability, workers' compensation as well as an increase in casualty reinsurance and monoline excess lines in the Reinsurance & Monoline Excess segments.

The Zacks Consensus Estimate for second-quarter 2022 premiums earned is pegged at $2.3 billion, indicating an increase of 18.6% from the year-ago quarter’s reported figure.

Higher income from investment funds, higher investment in bonds, increase from equity securities and increase in real estate are likely to have aided improvement in net investment income. However, a decrease in the arbitrage trading account and higher investment expenses are expected to have weighed on the upside.

The expense ratio is likely to have improved on higher net premiums earned surpassing compensation expense growth.

An accelerated share buyback is anticipated to have provided an additional boost to the bottom line.

Expenses are expected to have risen on higher losses and loss expenses, other operating costs and expenses and expenses from non-insurance businesses.

The Zacks Consensus Estimate for earnings is pegged at 84 cents, indicating a 7.7% increase from the year-ago quarter reported number.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for W.R. Berkley this time around. A stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case as you can see below.

Earnings ESP: W.R. Berkley has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 84 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

W.R. Berkley Corporation Price and EPS Surprise

W.R. Berkley Corporation Price and EPS Surprise

W.R. Berkley Corporation price-eps-surprise | W.R. Berkley Corporation Quote


Zacks Rank: W.R. Berkley currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Some insurance stocks with the right combination of elements to deliver an earnings beat this time around are:

Argo Group International Holdings, Ltd. (ARGO - Free Report) has an Earnings ESP of +2.98% and a Zacks Rank of 3. The Zacks Consensus Estimate for ARGO’s second-quarter earnings is pegged at $1.12, indicating a decrease of 30% from the year-ago reported figure.

ARGO delivered an earnings beat in all quarters of 2021.

CCC Intelligent Solutions Holdings Inc. (CCCS - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank #3. The Zacks Consensus Estimate for CCC Intelligent Solutions’ second-quarter earnings is pegged at 8 cents, indicating a decrease of 99.5% from the year-ago reported figure.

CCCS beat earnings estimates in two of the three reported quarters of 2021 while missing in one.

Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank of 3. The Zacks Consensus Estimate for CINF’s second-quarter earnings is pegged at $1.05, indicating a decrease of 41.3% from the year-ago reported figure.

Cincinnati Financial beat earnings estimates in all quarters of 2021.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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