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What's in Store for Kinsale Capital (KNSL) in Q2 Earnings?
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Kinsale Capital (KNSL - Free Report) is scheduled to report second-quarter 2024 earnings on Jul 25, after market close. The insurer delivered an earnings surprise in the last four reported quarters.
Factors to Note
Casualty and Property premiums are likely to have improved, banking on better performance at small property, entertainment and general casualty divisions as well as in high-value homeowners and commercial auto. Better pricing, established presence across the E&S market of the United States and high retention rates arising from contract renewals are likely to have favored better operations. The E&S market continues to benefit from the inflow of business from standard companies and from rate increases driven by inflation and relatively tight underwriting conditions.
We expect earned premiums to be $331.3 billion, up 28.9% from the year-ago reported figure. The Zacks Consensus Estimate is pegged at $333 million.
Net investment income is likely to have improved on strong cash flow from operating activities coupled with an improved rate environment. We expect investment income to be $35.5 million, up 47% from the year-ago reported quarter. The Zacks Consensus Estimate is pegged at $34.8 million.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $377.8 million, suggesting an increase of 27.6% from the prior-year quarter.
Total benefits and expenses are likely to have increased mainly due to higher insurance losses underwriting, acquisition and insurance expenses, as well as interest expenses. We expect total expenses to rise 36.6% to $280.8 million.
Kinsale Capital has developed a proprietary technology platform over time that provides it with a competitive edge. Expense ratio in the second quarter is likely to have improved, given the insurer’s technology-driven operations. The Zacks Consensus Estimate is pegged at 20.9. Our estimate is pegged at 21.7.
Underwriting income is likely to have benefited from a combination of premium growth, rate increases, favorable loss experience and lower net commissions. The company also has various reinsurance contracts to limit its exposure to potential losses.
The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $3.52, indicating an increase of 22% from the prior-year quarter.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Kinsale Capital this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you can see below.
Earnings ESP: Kinsale Capital has an Earnings ESP of -0.78%. This is because the Most Accurate Estimate of 95 cents is pegged lower than the Zacks Consensus Estimate of 97 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Kinsale Capital Group, Inc. Price and EPS Surprise
Here are three insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +0.55% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $2.17, indicating a year-over-year increase of 13%%.
ACGL’s earnings beat estimates in each of the last four reported quarters.
First American Financial (FAF - Free Report) has an Earnings ESP of +8.46% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.13, indicating a year-over-year decrease of 16.3%.
FAF’s earnings beat estimates in two of the last four reported quarters and missed in the other two.
Fidelity National Financial (FNF - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.27, indicating a year-over-year decrease of 25.7%.
FNF earnings beat estimates in one of the last four reported quarters and missed in the other three.
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What's in Store for Kinsale Capital (KNSL) in Q2 Earnings?
Kinsale Capital (KNSL - Free Report) is scheduled to report second-quarter 2024 earnings on Jul 25, after market close. The insurer delivered an earnings surprise in the last four reported quarters.
Factors to Note
Casualty and Property premiums are likely to have improved, banking on better performance at small property, entertainment and general casualty divisions as well as in high-value homeowners and commercial auto. Better pricing, established presence across the E&S market of the United States and high retention rates arising from contract renewals are likely to have favored better operations. The E&S market continues to benefit from the inflow of business from standard companies and from rate increases driven by inflation and relatively tight underwriting conditions.
We expect earned premiums to be $331.3 billion, up 28.9% from the year-ago reported figure. The Zacks Consensus Estimate is pegged at $333 million.
Net investment income is likely to have improved on strong cash flow from operating activities coupled with an improved rate environment. We expect investment income to be $35.5 million, up 47% from the year-ago reported quarter. The Zacks Consensus Estimate is pegged at $34.8 million.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $377.8 million, suggesting an increase of 27.6% from the prior-year quarter.
Total benefits and expenses are likely to have increased mainly due to higher insurance losses underwriting, acquisition and insurance expenses, as well as interest expenses. We expect total expenses to rise 36.6% to $280.8 million.
Kinsale Capital has developed a proprietary technology platform over time that provides it with a competitive edge. Expense ratio in the second quarter is likely to have improved, given the insurer’s technology-driven operations. The Zacks Consensus Estimate is pegged at 20.9. Our estimate is pegged at 21.7.
Underwriting income is likely to have benefited from a combination of premium growth, rate increases, favorable loss experience and lower net commissions. The company also has various reinsurance contracts to limit its exposure to potential losses.
The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $3.52, indicating an increase of 22% from the prior-year quarter.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Kinsale Capital this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you can see below.
Earnings ESP: Kinsale Capital has an Earnings ESP of -0.78%. This is because the Most Accurate Estimate of 95 cents is pegged lower than the Zacks Consensus Estimate of 97 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Kinsale Capital Group, Inc. Price and EPS Surprise
Kinsale Capital Group, Inc. price-eps-surprise | Kinsale Capital Group, Inc. Quote
Zacks Rank: Kinsale Capital 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 insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +0.55% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $2.17, indicating a year-over-year increase of 13%%.
ACGL’s earnings beat estimates in each of the last four reported quarters.
First American Financial (FAF - Free Report) has an Earnings ESP of +8.46% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.13, indicating a year-over-year decrease of 16.3%.
FAF’s earnings beat estimates in two of the last four reported quarters and missed in the other two.
Fidelity National Financial (FNF - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.27, indicating a year-over-year decrease of 25.7%.
FNF earnings beat estimates in one of the last four reported quarters and missed in the other three.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.