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W.R. Berkley Set to Report Q3 Earnings: What's in the Cards?
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W.R. Berkley Corporation (WRB - Free Report) is slated to report third-quarter 2024 earnings on Oct. 21, after market close. The insurer delivered an earnings surprise in each of the last four reported quarters, the average beat being 11.43%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
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 $3.3 billion. Reinsurance & Monoline Excess segment’s gross premiums written is expected to have improved, banking on well-performing monoline excess and property reinsurance. We expect the metric to be $377 million.
The Zacks Consensus Estimate for third-quarter 2024 premiums earned is pegged at $2.9 billion. Our estimate for the metric is also pegged at $2.9 billion.
Net investment income is likely to have benefited from an increase in fixed-maturity income from a growing portfolio with higher yields. A growing portfolio owing to improving cash flows is likely to have aided the upside. The Zacks Consensus Estimate for third-quarter 2024 net investment income is pegged at $343.1 million. We estimate the metric to be $382.1 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 $3.4 billion, indicating an upside of 11.9% from the year-ago reported figure.
Expenses are expected to have increased, owing to higher losses and loss expenses, expenses from non-insurance business, higher investment in technology and data and analytics as well as new startup operating unit expenses. We expect total expenses to increase 12.8% to $2.9 billion.
Changes in reinsurance structures, as well as increased compensation costs and start-up operating unit expenses, are likely to have contributed to the higher expense ratio. We estimate the metric to deteriorate 160 basis points in the third quarter.
W.R. Berkley is expected to have benefited from prudent pricing and increased exposure, coupled with wise underwriting, which are likely to have aided underwriting profitability. The Zacks Consensus Estimate for combined ratio is currently pegged at 91. We estimate the combined ratio to be 93.8.
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 93 cents, indicating a 3.3% increase from the year-ago quarter’s reported number.
What the Zacks Model Unveils
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) for an earnings beat. This is not the case, as you can see here.
Earnings ESP: W.R. Berkley has an Earnings ESP of -2.34% at present. This is because the Most Accurate Estimate of 91 cents is pegged lower than the Zacks Consensus Estimate of 93 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three P&C 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 +4.85% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $1.87, indicating a year-over-year decrease of 19.1%.
ACGL’s earnings beat estimates in each of the last four reported quarters.
Chubb Limited (CB - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $5.02, indicating a year-over-year decrease of 1.4%.
CB earnings beat estimates in the last four reported quarters.
RLI Corporation (RLI - Free Report) has an Earnings ESP of +17.65% and a Zacks Rank #1 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at 94 cents, indicating a year-over-year increase of 54.1%.
RLI’s earnings beat estimates in each of the last four reported quarters.
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W.R. Berkley Set to Report Q3 Earnings: What's in the Cards?
W.R. Berkley Corporation (WRB - Free Report) is slated to report third-quarter 2024 earnings on Oct. 21, after market close. The insurer delivered an earnings surprise in each of the last four reported quarters, the average beat being 11.43%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
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 $3.3 billion. Reinsurance & Monoline Excess segment’s gross premiums written is expected to have improved, banking on well-performing monoline excess and property reinsurance. We expect the metric to be $377 million.
The Zacks Consensus Estimate for third-quarter 2024 premiums earned is pegged at $2.9 billion. Our estimate for the metric is also pegged at $2.9 billion.
Net investment income is likely to have benefited from an increase in fixed-maturity income from a growing portfolio with higher yields. A growing portfolio owing to improving cash flows is likely to have aided the upside. The Zacks Consensus Estimate for third-quarter 2024 net investment income is pegged at $343.1 million. We estimate the metric to be $382.1 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 $3.4 billion, indicating an upside of 11.9% from the year-ago reported figure.
Expenses are expected to have increased, owing to higher losses and loss expenses, expenses from non-insurance business, higher investment in technology and data and analytics as well as new startup operating unit expenses. We expect total expenses to increase 12.8% to $2.9 billion.
Changes in reinsurance structures, as well as increased compensation costs and start-up operating unit expenses, are likely to have contributed to the higher expense ratio. We estimate the metric to deteriorate 160 basis points in the third quarter.
W.R. Berkley is expected to have benefited from prudent pricing and increased exposure, coupled with wise underwriting, which are likely to have aided underwriting profitability. The Zacks Consensus Estimate for combined ratio is currently pegged at 91. We estimate the combined ratio to be 93.8.
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 93 cents, indicating a 3.3% increase from the year-ago quarter’s reported number.
What the Zacks Model Unveils
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) for an earnings beat. This is not the case, as you can see here.
Earnings ESP: W.R. Berkley has an Earnings ESP of -2.34% at present. This is because the Most Accurate Estimate of 91 cents is pegged lower than the Zacks Consensus Estimate of 93 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-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.
Stocks to Consider
Here are three P&C 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 +4.85% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $1.87, indicating a year-over-year decrease of 19.1%.
ACGL’s earnings beat estimates in each of the last four reported quarters.
Chubb Limited (CB - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $5.02, indicating a year-over-year decrease of 1.4%.
CB earnings beat estimates in the last four reported quarters.
RLI Corporation (RLI - Free Report) has an Earnings ESP of +17.65% and a Zacks Rank #1 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at 94 cents, indicating a year-over-year increase of 54.1%.
RLI’s earnings beat estimates in each of the last four reported quarters.