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W.R. Berkley (WRB) to Report Q1 Earnings: What's in Store?
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W.R. Berkley Corporation (WRB - Free Report) is slated to report first-quarter 2023 earnings on Apr 20 after market close. The insurer delivered an earnings surprise in each of the last four quarters, the average being 21.12%.
Factors to Consider
Gross premiums written in the first quarter of 2023 are expected to have benefited from strong performing other liability, short-tail lines, commercial auto, professional liability and workers’ compensation in the Insurance segment as well as an increase in casualty reinsurance, monoline excess and property reinsurance in the Reinsurance & Monoline Excess segment.
The Zacks Consensus Estimate for first-quarter 2023 premiums earned is pegged at $2.5 billion, up 10.7% from the year-ago reported quarter.
Rising interest rates and a larger investment portfolio, increase from equity securities and growth from the arbitrage trading account are likely to have aided improvement in net investment income. The upside is likely to have been partially offset by a decrease in income from investment funds, decline in real estate and higher investment expenses.
The Zacks Consensus Estimate for first-quarter 2023 net investment income is pegged at $221 million, indicating an upside of 27% from the year-ago reported figure.
The expense ratio is likely to have improved on net premiums earned outpacing compensation expense growth.
Expenses are likely to have increased owing to higher losses and loss expenses and other operating costs and expenses.
Higher-than-expected cat losses are likely to have weighed on underwriting profitability and thus combined ratio.
The Zacks Consensus Estimate for earnings is pegged at $1.20, indicating a 9.1% 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. This is because the 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 -1.25%. This is because the Most Accurate Estimate is pegged at $1.19, lower than the Zacks Consensus Estimate of $1.20. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three stocks from the insurance industry that you may want to consider, as our model shows that these also have the right combination of elements to post the earnings beat:
Kinsale Capital Group (KNSL - Free Report) has an Earnings ESP of +3.34% and a Zacks Rank of 1. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at $2.25, indicating an increase of 38% from the year-ago reported figure.
KNSL’s earnings beat estimates in the last four reported quarters.
Chubb Limited (CB - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at $4.37, indicating an increase of 14.4%.
CB’s earnings beat estimates in three of the last four reported quarters and missed in one.
RLI Corporation (RLI - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2023 earnings is $1.21, implying a decline of 15.4% from the year-ago reported quarter.
RLI’s earnings beat estimates in the last four reported quarters.
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W.R. Berkley (WRB) to Report Q1 Earnings: What's in Store?
W.R. Berkley Corporation (WRB - Free Report) is slated to report first-quarter 2023 earnings on Apr 20 after market close. The insurer delivered an earnings surprise in each of the last four quarters, the average being 21.12%.
Factors to Consider
Gross premiums written in the first quarter of 2023 are expected to have benefited from strong performing other liability, short-tail lines, commercial auto, professional liability and workers’ compensation in the Insurance segment as well as an increase in casualty reinsurance, monoline excess and property reinsurance in the Reinsurance & Monoline Excess segment.
The Zacks Consensus Estimate for first-quarter 2023 premiums earned is pegged at $2.5 billion, up 10.7% from the year-ago reported quarter.
Rising interest rates and a larger investment portfolio, increase from equity securities and growth from the arbitrage trading account are likely to have aided improvement in net investment income. The upside is likely to have been partially offset by a decrease in income from investment funds, decline in real estate and higher investment expenses.
The Zacks Consensus Estimate for first-quarter 2023 net investment income is pegged at $221 million, indicating an upside of 27% from the year-ago reported figure.
The expense ratio is likely to have improved on net premiums earned outpacing compensation expense growth.
Expenses are likely to have increased owing to higher losses and loss expenses and other operating costs and expenses.
Higher-than-expected cat losses are likely to have weighed on underwriting profitability and thus combined ratio.
The Zacks Consensus Estimate for earnings is pegged at $1.20, indicating a 9.1% 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. This is because the 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 -1.25%. This is because the Most Accurate Estimate is pegged at $1.19, lower than the Zacks Consensus Estimate of $1.20. 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-eps-surprise | W.R. Berkley Corporation Quote
Zacks Rank: W.R. Berkley currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three stocks from the insurance industry that you may want to consider, as our model shows that these also have the right combination of elements to post the earnings beat:
Kinsale Capital Group (KNSL - Free Report) has an Earnings ESP of +3.34% and a Zacks Rank of 1. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at $2.25, indicating an increase of 38% from the year-ago reported figure.
KNSL’s earnings beat estimates in the last four reported quarters.
Chubb Limited (CB - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at $4.37, indicating an increase of 14.4%.
CB’s earnings beat estimates in three of the last four reported quarters and missed in one.
RLI Corporation (RLI - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2023 earnings is $1.21, implying a decline of 15.4% from the year-ago reported quarter.
RLI’s earnings beat estimates in the last four reported quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.