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Insurers Set to Report Q2 Earnings on Jul 24: CB, RNR, WRB
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The second-quarter earnings season is gathering momentum with 87 members of the elite S&P 500 index having reported financial numbers so far. Per the latest Earnings Preview, performances of these index participants indicate 20.9% increase in total earnings on 10.3% higher revenues. The beat ratio is impressive with 86.2% companies surpassing bottom-line expectations and 77% outperforming on the top-line front.
The Finance sector (of the 16 Zacks sectors) is expected to deliver earnings growth in mid- 20s on 4.2% stronger revenues per the Earnings Preview.
Integral to the Finance sector, the insurance industry is likely to witness better results this yet-to-be-reported quarter on the back of an improving rate environment, tax cuts and a favorable operating environment.
The second quarter managed to escape the harsh onslaughts of Mother Nature though there were successive rain storms in the United States as well as Canada. A Morgan Stanley analyst noted that the second-quarter cat loss estimate is equivalent to about half of what insurers have usually suffered as a result of natural calamities in any given second quarter per a carriermanagement.com report.
Improved pricing, prudent underwriting practices, portfolio repositioning as well as reliance on reinsurance covers possibly have helped insurers survive the deficits.
A steadily progressing interest rate environment is likely to have highly boosted net investment income, an important component of an insurer’s top line. Reflecting economic stability, the Federal Reserve raised interest rate in June, marking the second hike in 2018.
Diversified portfolio, a wide geographic footprint, strategic consolidations and lower taxes are anticipated to have enhanced insurers’ performance in the quarter to be reported.
With 750 companies (175 S&P 500 members) set to announce earnings results this week, let’s find out where the following insurers stand ahead of their quarterly releases on Jul 24.
Chubb Limited’s (CB - Free Report) premiums have probably increased on an improved commercial property and casualty pricing plus a compelling product portfolio. Riding on a steady improvement in interest rates along with better-than-expected private equity distributions, the company might have experienced better investment results. It anticipates quarterly investment income run rate to range between $875 million and $885 million. A lower level of cat loss should have led to an improved combined ratio.
The Zacks Consensus Estimate of $2.63 per share for the yet-to-be-reported quarter reflects a 5.2% year-over-year increase. Chubb carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. Further, combined with an Earnings ESP of +1.16%, makes us confident of a likely positive surprise.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for RenaissanceRe Holdings Ltd. (RNR - Free Report) is pegged at $3.01, up 7.9% year over year. Though the company is a Zacks #3 Ranked player, its Earnings ESP of 0.00% makes surprise prediction difficult.
RenaissanceRe Holdings Ltd. Price and EPS Surprise
The Zacks Consensus Estimate for W.R. Berkley Corporation (WRB - Free Report) stands at 82 cents, up 26.2% year over year. The company has an Earnings ESP of +0.61%, which increases the odds of a likely earnings surprise. However, combined with a Zacks Rank #4 (Sell), which lowers the predictive power of ESP, leaves our surprise prediction inconclusive.
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Insurers Set to Report Q2 Earnings on Jul 24: CB, RNR, WRB
The second-quarter earnings season is gathering momentum with 87 members of the elite S&P 500 index having reported financial numbers so far. Per the latest Earnings Preview, performances of these index participants indicate 20.9% increase in total earnings on 10.3% higher revenues. The beat ratio is impressive with 86.2% companies surpassing bottom-line expectations and 77% outperforming on the top-line front.
The Finance sector (of the 16 Zacks sectors) is expected to deliver earnings growth in mid- 20s on 4.2% stronger revenues per the Earnings Preview.
Integral to the Finance sector, the insurance industry is likely to witness better results this yet-to-be-reported quarter on the back of an improving rate environment, tax cuts and a favorable operating environment.
The second quarter managed to escape the harsh onslaughts of Mother Nature though there were successive rain storms in the United States as well as Canada. A Morgan Stanley analyst noted that the second-quarter cat loss estimate is equivalent to about half of what insurers have usually suffered as a result of natural calamities in any given second quarter per a carriermanagement.com report.
Improved pricing, prudent underwriting practices, portfolio repositioning as well as reliance on reinsurance covers possibly have helped insurers survive the deficits.
A steadily progressing interest rate environment is likely to have highly boosted net investment income, an important component of an insurer’s top line. Reflecting economic stability, the Federal Reserve raised interest rate in June, marking the second hike in 2018.
Diversified portfolio, a wide geographic footprint, strategic consolidations and lower taxes are anticipated to have enhanced insurers’ performance in the quarter to be reported.
With 750 companies (175 S&P 500 members) set to announce earnings results this week, let’s find out where the following insurers stand ahead of their quarterly releases on Jul 24.
Chubb Limited’s (CB - Free Report) premiums have probably increased on an improved commercial property and casualty pricing plus a compelling product portfolio. Riding on a steady improvement in interest rates along with better-than-expected private equity distributions, the company might have experienced better investment results. It anticipates quarterly investment income run rate to range between $875 million and $885 million. A lower level of cat loss should have led to an improved combined ratio.
The Zacks Consensus Estimate of $2.63 per share for the yet-to-be-reported quarter reflects a 5.2% year-over-year increase. Chubb carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. Further, combined with an Earnings ESP of +1.16%, makes us confident of a likely positive surprise.
(Read more: Chubb Limited Q2 Earnings: Is a Beat in the Cards?)
Chubb Limited Price and EPS Surprise
Chubb Limited Price and EPS Surprise | Chubb Limited Quote
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for RenaissanceRe Holdings Ltd. (RNR - Free Report) is pegged at $3.01, up 7.9% year over year. Though the company is a Zacks #3 Ranked player, its Earnings ESP of 0.00% makes surprise prediction difficult.
RenaissanceRe Holdings Ltd. Price and EPS Surprise
RenaissanceRe Holdings Ltd. Price and EPS Surprise | RenaissanceRe Holdings Ltd. Quote
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for W.R. Berkley Corporation (WRB - Free Report) stands at 82 cents, up 26.2% year over year. The company has an Earnings ESP of +0.61%, which increases the odds of a likely earnings surprise. However, combined with a Zacks Rank #4 (Sell), which lowers the predictive power of ESP, leaves our surprise prediction inconclusive.
W.R. Berkley Corporation Price and EPS Surprise
W.R. Berkley Corporation Price and EPS Surprise | W.R. Berkley Corporation Quote
Looking for Stocks with Skyrocketing Upside?
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>