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W.R. Berkley (WRB) to Report Q4 Earnings: What's in Store?
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W.R. Berkley Corporation (WRB - Free Report) is slated to report fourth-quarter 2023 earnings on Jan 24, after market close. The insurer delivered a positive earnings surprise in the last reported quarter.
Factors to Consider
Well-performing other liability, short-tail lines and commercial auto are likely to have benefited the Insurance segment’s gross premiums written in the fourth quarter of 2023. We expect the metric to be $2.9 billion.
Increases in monoline excess and property reinsurance are likely to have aided the Reinsurance & Monoline Excess segment’s gross premiums written. We expect the metric to be $339.2 million.
Growth in gross premium written in the fourth quarter of 2023 is also likely to have been driven by higher premiums in the international unit, mainly supported by the emerging markets of the United Kingdom, Continental Europe, South America, Canada, Scandinavia, Asia and Australia.
The Zacks Consensus Estimate for fourth-quarter 2023 premiums earned is pegged at $2.7 billion, up 7.7% from the year-ago reported quarter. We estimate the metric to be $2.7 billion.
Its short duration high credit quality investment portfolio, along with an improved rate environment, is likely to have aided net investment income. The Zacks Consensus Estimate for fourth-quarter 2023 net investment income is pegged at $285 million, indicating an upside of 23.4% from the year-ago reported figure. We estimate the metric to be $276 million.
The expense ratio is likely to have improved on net premiums earned in excess of compensation expense growth.
Expenses are likely to have increased owing to higher losses and loss expenses, other operating costs and expenses from non-insurance businesses.
W.R. Berkley is expected to have benefited from better pricing and increased exposure, which are likely to have aided underwriting profitability. We estimate the combined ratio to be 86.
Continued share buybacks are likely to have provided additional support to the bottom line.
The Zacks Consensus Estimate for earnings per share is pegged at $1.35, indicating a 16.4% increase from the year-ago quarter’s reported number.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for W.R. Berkley this time around. This is because the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: W.R. Berkley has an Earnings ESP of +6.88% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some other insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.94, implying a decline of 9.3% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACGL’s earnings beat estimates in each of the last four reported quarters.
Chubb Limited (CB - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $5.04 per share, indicating an increase of 24.4% from the year-ago quarter's level.
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 +14.38% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.44 per share, implying a decline of 5.8% from the year-ago reported figure.
RLI’s earnings beat estimates in three of the last four reported quarters and missed in one.
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W.R. Berkley (WRB) to Report Q4 Earnings: What's in Store?
W.R. Berkley Corporation (WRB - Free Report) is slated to report fourth-quarter 2023 earnings on Jan 24, after market close. The insurer delivered a positive earnings surprise in the last reported quarter.
Factors to Consider
Well-performing other liability, short-tail lines and commercial auto are likely to have benefited the Insurance segment’s gross premiums written in the fourth quarter of 2023. We expect the metric to be $2.9 billion.
Increases in monoline excess and property reinsurance are likely to have aided the Reinsurance & Monoline Excess segment’s gross premiums written. We expect the metric to be $339.2 million.
Growth in gross premium written in the fourth quarter of 2023 is also likely to have been driven by higher premiums in the international unit, mainly supported by the emerging markets of the United Kingdom, Continental Europe, South America, Canada, Scandinavia, Asia and Australia.
The Zacks Consensus Estimate for fourth-quarter 2023 premiums earned is pegged at $2.7 billion, up 7.7% from the year-ago reported quarter. We estimate the metric to be $2.7 billion.
Its short duration high credit quality investment portfolio, along with an improved rate environment, is likely to have aided net investment income. The Zacks Consensus Estimate for fourth-quarter 2023 net investment income is pegged at $285 million, indicating an upside of 23.4% from the year-ago reported figure. We estimate the metric to be $276 million.
The expense ratio is likely to have improved on net premiums earned in excess of compensation expense growth.
Expenses are likely to have increased owing to higher losses and loss expenses, other operating costs and expenses from non-insurance businesses.
W.R. Berkley is expected to have benefited from better pricing and increased exposure, which are likely to have aided underwriting profitability. We estimate the combined ratio to be 86.
Continued share buybacks are likely to have provided additional support to the bottom line.
The Zacks Consensus Estimate for earnings per share is pegged at $1.35, indicating a 16.4% increase from the year-ago quarter’s reported number.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for W.R. Berkley this time around. This is because the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: W.R. Berkley has an Earnings ESP of +6.88% at present. 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 carries a Zacks Rank of 3 at present.
Other Stocks to Consider
Some other insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.94, implying a decline of 9.3% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACGL’s earnings beat estimates in each of the last four reported quarters.
Chubb Limited (CB - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $5.04 per share, indicating an increase of 24.4% from the year-ago quarter's level.
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 +14.38% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.44 per share, implying a decline of 5.8% from the year-ago reported figure.
RLI’s earnings beat estimates in three of the last four reported quarters and missed in one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.