Insurance industry players are likely to have benefited from improved pricing, strong retention, new business, exposure growth, favorable renewals, reinsurance agreements, compelling products and service portfolio and the adoption of technologies in the first quarter. Some of the insurers like Cincinnati Financial Corporation (CINF Quick QuoteCINF - Free Report) , First American Financial Corporation (FAF Quick QuoteFAF - Free Report) , The Hartford Financial Services Group, Inc. (HIG Quick QuoteHIG - Free Report) , Arthur J. Gallagher & Co. (AJG Quick QuoteAJG - Free Report) and Willis Towers Watson plc (WTW Quick QuoteWTW - Free Report) are set to announce quarterly results on Apr 28, 2022.

Premiums are likely to have benefited from price hikes, operational strength, higher retention, strong renewal, the appointment of retail agents and higher new business premiums. Also, growing risk awareness and above-average natural catastrophes driving improved pricing are likely to have supported premium growth.

Improved pricing and a not-so-active catastrophe environment are likely to have aided underwriting profitability and combined ratio. Exposure growth, prudent underwriting, favorable reserve development and a sturdy capital position are likely to improve underwriting results.

Per Aon, insurance and reinsurance industry losses from natural catastrophes are projected to be nearly $14 billion in the first quarter of 2022. Insured losses from natural disasters exceeded $10 billion in the first quarter for the sixth consecutive year.

Higher reported net asset values, higher income from other alternative investments, growth in equity portfolio dividends and higher income received from private equity partnerships are expected to drive net investment income.

Courtesy of its solid capital position, the insurers executed strategic mergers and acquisitions, which are likely to boost portfolios, diversify operations, enable the companies to penetrate more profitable market segments as well as expand their geographic footprint.

The industry continues to make increased investments in emerging technologies like Chatbot, artificial intelligence and insurtech solutions, which are expected to expand automation capabilities, improve operational efficiency and limit costs. This in turn may drive margin expansion in the to-be-reported quarter.

Let’s see how the following five insurers are placed ahead of their first-quarter 2022 earnings on Apr 28.

Our proprietary model states that a company needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Cincinnati Financial's property casualty premiums are likely to have gained from premium growth initiatives, price increases and a higher level of insured exposures. Contributions from Cincinnati Re are likely to have added to the upside. Cincinnati Re’s premiums are likely to have gained from improved conditions in the reinsurance market. (Read more: What’s in Store for Cincinnati Financial in Q1 Earnings?)

The Zacks Consensus Estimate for Cincinnati Financial's first-quarter earnings per share is pegged at $1.48, indicating an increase of 8% from the prior-year quarter. Cincinnati Financial has an Earnings ESP of 0.00% and carries a Zacks Rank #3. The insurer delivered an earnings surprise in each of the last four quarters, the average being 38.48%. This is depicted in the chart below:

First American Financial’s Title Insurance and Services segment is expected to have benefited from higher direct premiums and escrow fees, higher average deal size in commercial business and the impact of strong home price appreciation on residential purchase transactions as well as the acquisition of ServiceMac. Higher operating revenues in the home warranty business should drive the Specialty Insurance business.

The Zacks Consensus Estimate for First American Financial’s first-quarter earnings of $1.21 per share implies a decline of 26.2% from the prior-year quarter’s reported number. First American Financial has an Earnings ESP of 0.00% and carries a Zacks Rank #2. The insurer delivered an earnings surprise in each of the last four quarters, the average being 29.4%. This is depicted in the chart below:

Hartford Financial’s revenues are likely to have gained from a higher contribution by its Commercial Lines, Hartford Funds and Corporate segments. HIG is likely to have continued witnessing strong sales in the to-be-reported quarter.

HIG is likely to have benefited from better-written premiums in the Commercial Lines segment. Hartford Funds and Group Benefits also likely contributed to this upside. (Read more: What's in the Cards for Hartford Financial Q1 Earnings?)

The Zacks Consensus Estimate for Hartford Financial’s first-quarter earnings of $1.56 per share implies a 178.6% increase from the prior-year quarter’s reported number. Hartford Financial has an Earnings ESP of -2.68% and carries a Zacks Rank #2. The bottom line beat estimates in three of the last four quarters, the average surprise being 34.58%. This is depicted in the chart below:

Arthur J. Gallagher’s fees and commissions are likely to have benefited from revenues associated with acquisitions, organic revenue growth, organic change in base commission and fee revenues. Its property and casualty brokerage operations are likely to have benefited from continued strong customer retention, new business generation, improvement in renewal exposure units and continued increases in premium rates across most geographies and lines of coverage. (Read more: What's in Store for Arthur J. Gallagher in Q1 Earnings?)

The Zacks Consensus Estimate for Arthur J. Gallagher’s first-quarter earnings per share stands at $2.77, indicating an increase of 37.1% from the year-ago quarter reported figure. Arthur J. Gallagher has an Earnings ESP of +0.63% and a Zacks Rank 1. The insurer delivered an earnings surprise in each of the last four quarters, the average being 8.76%. This is depicted in the chart below:

Willis Towers’ revenues are likely to have witnessed the impact of increased demand for advisory services, new business activity, strong renewals, technology sales and growth in Medicare Advantage and Life sales. In the first quarter, the Health, Wealth and Career segment is likely to have benefited from continued increased demand for advisory services and strong market demand for broad-based rewards advisory work. (Read more: Willis Towers to Report Q1 Earnings: What's in Store?)

The Zacks Consensus Estimate for Willis Towers’ earnings per share is pegged at $2.57, suggesting a decrease of 29.4% from the year-ago reported figure. Willis Towers has an Earnings ESP of -0.71% and carries a Zacks Rank of 3. The insurer delivered an earnings surprise in each of the last four quarters, the average being 15.72%. This is depicted in the chart below:

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.