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Is a Beat in Store for W.R. Berkley (WRB) This Earnings Season?
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W.R. Berkley Corporation (WRB - Free Report) is slated to report first-quarter 2024 earnings on Apr 23, before market open. The insurer beat earnings estimates in the last reported quarter.
Factors to Consider
Gross premiums written at the Insurance segment are likely to have benefited from well-performing other liability, short-tail lines and commercial auto. We expect the metric to be $3 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 $400.8 million.
The Zacks Consensus Estimate for first-quarter 2024 premiums earned is pegged at $2.8 billion, indicating an increase of 10.2% from the year-ago reported quarter. Our estimate for the metric is also $2.8 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 first-quarter 2023 net investment income is pegged at $305 million, indicating an upside of 36.8% from the year-ago reported figure. We estimate the metric to be $302 million.
Improvement in premiums coupled with higher investment income is likely to have aided revenues in the to-be-reported quarter. The Zacks Consensus Estimate is pegged at $3.2 billion, indicating an upside of 11.9% from the year-ago reported figure.
Expenses are likely to have increased owing to investment in technology and data and analytics as well as new startup operating unit expenses. We expect total expenses to increase 7.7% to $2.7 billion.
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 90.2.
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 $1.46, indicating a 46% 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 +0.10% 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:
Cincinnati Financial (CINF - Free Report) has an Earnings ESP of +5.06% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $1.58, indicating a year-over-year increase of 77.5%
CINF’s earnings beat estimates in each of the last four reported quarters.
Axis Capital Holdings (AXS - Free Report) has an Earnings ESP of +1.56% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $2.68, indicating a year-over-year decrease of 15%.
AXS earnings beat estimates in each of the last four reported quarters.
Allstate Corporation (ALL - Free Report) has an Earnings ESP of +5.69% and currently carries a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $3.78, implying an increase of 390.8% from the year-ago reported figure.
ALL’s earnings beat estimates in three of the last four reported quarters while missing in one.
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Is a Beat in Store for W.R. Berkley (WRB) This Earnings Season?
W.R. Berkley Corporation (WRB - Free Report) is slated to report first-quarter 2024 earnings on Apr 23, before market open. The insurer beat earnings estimates in the last reported quarter.
Factors to Consider
Gross premiums written at the Insurance segment are likely to have benefited from well-performing other liability, short-tail lines and commercial auto. We expect the metric to be $3 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 $400.8 million.
The Zacks Consensus Estimate for first-quarter 2024 premiums earned is pegged at $2.8 billion, indicating an increase of 10.2% from the year-ago reported quarter. Our estimate for the metric is also $2.8 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 first-quarter 2023 net investment income is pegged at $305 million, indicating an upside of 36.8% from the year-ago reported figure. We estimate the metric to be $302 million.
Improvement in premiums coupled with higher investment income is likely to have aided revenues in the to-be-reported quarter. The Zacks Consensus Estimate is pegged at $3.2 billion, indicating an upside of 11.9% from the year-ago reported figure.
Expenses are likely to have increased owing to investment in technology and data and analytics as well as new startup operating unit expenses. We expect total expenses to increase 7.7% to $2.7 billion.
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 90.2.
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 $1.46, indicating a 46% 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 +0.10% 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Some other insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Cincinnati Financial (CINF - Free Report) has an Earnings ESP of +5.06% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $1.58, indicating a year-over-year increase of 77.5%
CINF’s earnings beat estimates in each of the last four reported quarters.
Axis Capital Holdings (AXS - Free Report) has an Earnings ESP of +1.56% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $2.68, indicating a year-over-year decrease of 15%.
AXS earnings beat estimates in each of the last four reported quarters.
Allstate Corporation (ALL - Free Report) has an Earnings ESP of +5.69% and currently carries a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $3.78, implying an increase of 390.8% from the year-ago reported figure.
ALL’s earnings beat estimates in three of the last four reported quarters while missing in one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.