We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Hold Strategy is Apt for W.R. Berkley (WRB) Stock
Read MoreHide Full Article
W.R. Berkley Corporation (WRB - Free Report) has been in investors' good books on the back of high retention, growth in premium rates and exposure and effective capital deployment.
Growth Projections
The Zacks Consensus Estimate for W.R. Berkley’s 2023 earnings is $4.52, indicating a 3.2% increase from the year-ago reported figure on 8.1% higher revenues of $11.86 billion. The consensus estimate for 2024 earnings is pegged at $5.44, indicating a 20.4% increase from the year-ago reported figure on 8.1% higher revenues of $12.82 billion.
Earnings Surprise History
WRB has a decent earnings surprise history. It beat estimates in six of the last seven quarters and missed in one.
Zacks Rank & Price Performance
W.R. Berkley currently carries a Zacks Rank #3 (Hold). In the past year, the stock has lost 14.7% against the industry’s growth of 19.7%.
Image Source: Zacks Investment Research
Business Tailwinds
The Insurance business of W.R. Berkley is well-poised to grow, given higher premiums from other liability, short-tail lines, workers' compensation, commercial automobile and professional liability.
Higher premiums at casualty reinsurance, property reinsurance and monoline excess are likely to drive the performance of the Reinsurance & Monoline Excess segment. Underwriting income should gain from the compounding rate improvement above loss cost trends along with growth in exposure and lower claims frequency in certain lines of business.
WRB is one of the largest commercial lines property and casualty insurance providers. It has a solid balance sheet with sufficient liquidity and robust cash flows that support growth initiatives and effective capital deployment.
Net investment income witnessed a CAGR of 5.4% in the past eight years (2015-2022). The combination of high-quality fixed maturity portfolio, along with solid operating cash flow, enabled the insurer to invest at higher interest rates in the first quarter of 2023. The metric should continue to improve as WRB also invests in alternative assets, such as private equity fund and direct real estate opportunities.
W.R. Berkley maintains a solid balance sheet with sufficient liquidity and strong cash flows. A strong capital position helps the company deploy capital via share repurchases, special dividends and dividend hikes that enhance shareholders’ value.
Kinsale Capital has a solid track record of beating earnings estimates in each of the last trailing four quarters, the average being 14.77%. In the past year, KNSL has gained 31.6%.
The Zacks Consensus Estimate for KNSL’s 2023 and 2024 earnings per share is pegged at $10.37 and $12.41, indicating a year-over-year increase of 32.9% and 19.6%, respectively.
RLI Corp. beat estimates in each of the last four quarters, the average being 43.50%. In the past year, RLI has lost 2.7%.
The Zacks Consensus Estimate for RLI’s 2023 and 2024 earnings has moved 10.1% and 3.7% north, respectively, in the past 30 days.
Root beat estimates in each of the last four quarters, the average being 18.24%. In the past year, the insurer has gained 29.4%.
The Zacks Consensus Estimate for ROOT’s 2023 and 2024 earnings per share indicates a year-over-year increase of 43.8% and 42.5%, respectively.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Here's Why Hold Strategy is Apt for W.R. Berkley (WRB) Stock
W.R. Berkley Corporation (WRB - Free Report) has been in investors' good books on the back of high retention, growth in premium rates and exposure and effective capital deployment.
Growth Projections
The Zacks Consensus Estimate for W.R. Berkley’s 2023 earnings is $4.52, indicating a 3.2% increase from the year-ago reported figure on 8.1% higher revenues of $11.86 billion. The consensus estimate for 2024 earnings is pegged at $5.44, indicating a 20.4% increase from the year-ago reported figure on 8.1% higher revenues of $12.82 billion.
Earnings Surprise History
WRB has a decent earnings surprise history. It beat estimates in six of the last seven quarters and missed in one.
Zacks Rank & Price Performance
W.R. Berkley currently carries a Zacks Rank #3 (Hold). In the past year, the stock has lost 14.7% against the industry’s growth of 19.7%.
Image Source: Zacks Investment Research
Business Tailwinds
The Insurance business of W.R. Berkley is well-poised to grow, given higher premiums from other liability, short-tail lines, workers' compensation, commercial automobile and professional liability.
Higher premiums at casualty reinsurance, property reinsurance and monoline excess are likely to drive the performance of the Reinsurance & Monoline Excess segment. Underwriting income should gain from the compounding rate improvement above loss cost trends along with growth in exposure and lower claims frequency in certain lines of business.
WRB is one of the largest commercial lines property and casualty insurance providers. It has a solid balance sheet with sufficient liquidity and robust cash flows that support growth initiatives and effective capital deployment.
Net investment income witnessed a CAGR of 5.4% in the past eight years (2015-2022). The combination of high-quality fixed maturity portfolio, along with solid operating cash flow, enabled the insurer to invest at higher interest rates in the first quarter of 2023. The metric should continue to improve as WRB also invests in alternative assets, such as private equity fund and direct real estate opportunities.
W.R. Berkley maintains a solid balance sheet with sufficient liquidity and strong cash flows. A strong capital position helps the company deploy capital via share repurchases, special dividends and dividend hikes that enhance shareholders’ value.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are Kinsale Capital Group, Inc. (KNSL - Free Report) , RLI Corp. (RLI - Free Report) and Root, Inc. (ROOT - Free Report) . While Kinsale Capital and RLI Corp. sport a Zacks Rank #1 (Strong Buy), Root carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinsale Capital has a solid track record of beating earnings estimates in each of the last trailing four quarters, the average being 14.77%. In the past year, KNSL has gained 31.6%.
The Zacks Consensus Estimate for KNSL’s 2023 and 2024 earnings per share is pegged at $10.37 and $12.41, indicating a year-over-year increase of 32.9% and 19.6%, respectively.
RLI Corp. beat estimates in each of the last four quarters, the average being 43.50%. In the past year, RLI has lost 2.7%.
The Zacks Consensus Estimate for RLI’s 2023 and 2024 earnings has moved 10.1% and 3.7% north, respectively, in the past 30 days.
Root beat estimates in each of the last four quarters, the average being 18.24%. In the past year, the insurer has gained 29.4%.
The Zacks Consensus Estimate for ROOT’s 2023 and 2024 earnings per share indicates a year-over-year increase of 43.8% and 42.5%, respectively.