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Multiline Insurance Q3 Earnings on Nov 3: CI, KMPR, FFG
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The Q3 earnings season is in full swing, with 66.4% of the S&P 500 Index members having reported their quarterly results so far. According to the latest Earnings Outlook, the performance of the 332 index members (accounting for 74.1% of the index’s total market capitalization) that have already reported their financial numbers indicate that total earnings have improved 1.9% on 1.3% higher revenues, on a year-over-year basis. The beat ratio is also strong with 72.9% companies surpassing bottom-line expectations and 55.4% outperforming on the top line.
The Finance sector (one of the 16 Zacks sectors) started the Q3 earnings season on a strong note. In fact, the financial performance of 86.7% companies from this sector that have already reported their quarterly results indicates 10.9% earnings growth due to a 6% increase in revenues, on a year-over-year basis
The Finance sector is highly diversified and includes several industries like insurance, banks and securities exchanges to name a few.
Amid a benign catastrophe environment in Q3, underwriting results improved. Lesser cat events favored capital gains and reserve release, but put pressure on pricing. The better payroll and employment scenarios should also benefit insurers. Insurers are poised to outperform in the quarter on the back of their core business, geographic expansion and strategic acquisitions.
Companies that are skewed toward providing health benefits may gain from the expansion of the Affordable Care Act, while improvement in the housing market should benefit mortgage insurers.
However, a soft interest rate environment continued to weigh on investment results. Nonetheless, spread compression on products like fixed annuities and universal life should improve.
Let’s take a look at how these three multiline insurers might fare when they report their Q3 numbers on Nov 3.
Cigna Corp. (CI - Free Report) , a health services organization, provides insurance and related products and services in the United States and internationally. It operates through three segments: Global Health Care, Global Supplemental Benefits, and Group Disability and Life. Last quarter, the company posted a negative earnings surprise of 17.15%. Cigna carries a Zacks Rank #3 (Hold). It has an Earnings ESP of -2.09% as the Most Accurate estimate stands at $1.87, while the Zacks Consensus Estimate is pegged at $1.91. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Cigna’s U.S. individual business is likely to have experienced softness similar to the rest of the industry. Third-quarter results are expected to demonstrate continued strength in the operating performance of the Global Health Care and Global Supplemental benefits’ business. We expect the company to continue posting favorable results on solid revenue growth in the government business, disciplined expense management and effective medical cost management. Favorable medical utilization along with medical cost management is expected to contribute to the bottom line. Moreover, its strong balance sheet, which enables share buyback, should support the upcoming results. (Read more: Cigna Poised to Beat on Earnings in Q3: Here's Why)
Though the company surpassed estimates in three of the past four quarters and delivered a negative surprise in only one, its average earnings miss is 1.34%.
Kemper Corporation (KMPR - Free Report) , a diversified insurance holding company, provides property and casualty, and life and health insurance to individuals and businesses in the United States. Last quarter, the company posted a negative earnings surprise of 17.15%. Kemper has an Earnings ESP of 0.00% as the Most Accurate estimate of 52 cents per share is in line with the Zacks Consensus Estimate. It carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company missed estimates in two of the past four quarters, resulting in an average earnings miss of 1.42%.
FBL Financial Group, Inc. through its subsidiaries, sells annuity and individual life insurance products. The Annuity segment sells various traditional annuity products that primarily consist of fixed rate and indexed annuities, and supplementary contracts. The Life Insurance segment offers whole life, term life, and universal life policies. Last quarter, the company posted a negative earnings surprise of 0.97%. FBL Financial carries a Zacks Rank #3. It has an Earnings ESP of 0.00% as the Most Accurate estimate of $1.03 per share is in line with the Zacks Consensus Estimate.
With respect to surprise trend, the company beat estimates in two of the last four quarters, with an average positive earnings surprise of 2.87%.
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Multiline Insurance Q3 Earnings on Nov 3: CI, KMPR, FFG
The Q3 earnings season is in full swing, with 66.4% of the S&P 500 Index members having reported their quarterly results so far. According to the latest Earnings Outlook, the performance of the 332 index members (accounting for 74.1% of the index’s total market capitalization) that have already reported their financial numbers indicate that total earnings have improved 1.9% on 1.3% higher revenues, on a year-over-year basis. The beat ratio is also strong with 72.9% companies surpassing bottom-line expectations and 55.4% outperforming on the top line.
The Finance sector (one of the 16 Zacks sectors) started the Q3 earnings season on a strong note. In fact, the financial performance of 86.7% companies from this sector that have already reported their quarterly results indicates 10.9% earnings growth due to a 6% increase in revenues, on a year-over-year basis
The Finance sector is highly diversified and includes several industries like insurance, banks and securities exchanges to name a few.
Amid a benign catastrophe environment in Q3, underwriting results improved. Lesser cat events favored capital gains and reserve release, but put pressure on pricing. The better payroll and employment scenarios should also benefit insurers. Insurers are poised to outperform in the quarter on the back of their core business, geographic expansion and strategic acquisitions.
Companies that are skewed toward providing health benefits may gain from the expansion of the Affordable Care Act, while improvement in the housing market should benefit mortgage insurers.
However, a soft interest rate environment continued to weigh on investment results. Nonetheless, spread compression on products like fixed annuities and universal life should improve.
Let’s take a look at how these three multiline insurers might fare when they report their Q3 numbers on Nov 3.
Cigna Corp. (CI - Free Report) , a health services organization, provides insurance and related products and services in the United States and internationally. It operates through three segments: Global Health Care, Global Supplemental Benefits, and Group Disability and Life. Last quarter, the company posted a negative earnings surprise of 17.15%. Cigna carries a Zacks Rank #3 (Hold). It has an Earnings ESP of -2.09% as the Most Accurate estimate stands at $1.87, while the Zacks Consensus Estimate is pegged at $1.91. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Cigna’s U.S. individual business is likely to have experienced softness similar to the rest of the industry. Third-quarter results are expected to demonstrate continued strength in the operating performance of the Global Health Care and Global Supplemental benefits’ business. We expect the company to continue posting favorable results on solid revenue growth in the government business, disciplined expense management and effective medical cost management. Favorable medical utilization along with medical cost management is expected to contribute to the bottom line. Moreover, its strong balance sheet, which enables share buyback, should support the upcoming results. (Read more: Cigna Poised to Beat on Earnings in Q3: Here's Why)
Though the company surpassed estimates in three of the past four quarters and delivered a negative surprise in only one, its average earnings miss is 1.34%.
CIGNA CORP Price and EPS Surprise
CIGNA CORP Price and EPS Surprise | CIGNA CORP Quote
Kemper Corporation (KMPR - Free Report) , a diversified insurance holding company, provides property and casualty, and life and health insurance to individuals and businesses in the United States. Last quarter, the company posted a negative earnings surprise of 17.15%. Kemper has an Earnings ESP of 0.00% as the Most Accurate estimate of 52 cents per share is in line with the Zacks Consensus Estimate. It carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company missed estimates in two of the past four quarters, resulting in an average earnings miss of 1.42%.
KEMPER CORP Price and EPS Surprise
KEMPER CORP Price and EPS Surprise | KEMPER CORP Quote
FBL Financial Group, Inc. through its subsidiaries, sells annuity and individual life insurance products. The Annuity segment sells various traditional annuity products that primarily consist of fixed rate and indexed annuities, and supplementary contracts. The Life Insurance segment offers whole life, term life, and universal life policies. Last quarter, the company posted a negative earnings surprise of 0.97%. FBL Financial carries a Zacks Rank #3. It has an Earnings ESP of 0.00% as the Most Accurate estimate of $1.03 per share is in line with the Zacks Consensus Estimate.
With respect to surprise trend, the company beat estimates in two of the last four quarters, with an average positive earnings surprise of 2.87%.
FBL FINL GRP-A Price and EPS Surprise
FBL FINL GRP-A Price and EPS Surprise | FBL FINL GRP-A Quote
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Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>