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W.R. Berkley (WRB) to Report Q2 Earnings: What's in Store?
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W.R. Berkley Corporation (WRB - Free Report) is slated to report second-quarter 2024 earnings on Jul 22, before market open. The insurer delivered an earnings surprise in each of the last four reported quarters, the average beat being 9.81%.
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 $3.2 billion.
Increases in monoline excess and property reinsurance are likely to have aided the Reinsurance & Monoline Excess segment’s gross premiums written. We expect the metric to be $357.9 million.
The Zacks Consensus Estimate for second-quarter 2024 premiums earned is pegged at $2.8 billion, indicating an increase of 10.8% from the year-ago reported quarter. Our estimate for the metric is also $2.8 billion.
Higher interest rates, larger fixed maturity securities portfolio and Argentine inflation-linked securities, and reduction in investment expenses are likely to have aided net investment income. The upside is likely to be partially offset by decreases in income from investment funds, real estate and equity securities. The Zacks Consensus Estimate for second-quarter 2024 net investment income is pegged at $331 million, indicating an upside of 35% from the year-ago reported figure. We estimate the metric to be $340.2 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 $3.3 billion, indicating an upside of 12.3% from the year-ago reported figure.
Expenses are expected to have increased, owing to higher investment in technology and data and analytics as well as new startup operating unit expenses. We expect total expenses to increase 9.5% to $2.7 billion.
W.R. Berkley is expected to have benefited from better pricing and increased exposure, coupled with prudent underwriting, which are likely to have aided underwriting profitability. The Zacks Consensus Estimate is currently pegged at 91. We estimate the combined ratio to be 90.3.
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 82 cents, indicating a 7.89% 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 -2.60% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: W.R. Berkley carries a Zacks Rank of 3 at present.
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:
ACGL’s earnings beat estimates in each of the last four reported quarters.
First American Financial (FAF - Free Report) has an Earnings ESP of +8.46% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.13, indicating a year-over-year decrease of 16.3%. FAF earnings beat estimates in two of the last four reported quarters and missed twice.
Fidelity National Financial, Inc. (FNF - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.27, indicating a year-over-year increase of 25.7%.
FNF’s earnings beat estimates in one of the last four reported quarters and missed in the other three.
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W.R. Berkley (WRB) to Report Q2 Earnings: What's in Store?
W.R. Berkley Corporation (WRB - Free Report) is slated to report second-quarter 2024 earnings on Jul 22, before market open. The insurer delivered an earnings surprise in each of the last four reported quarters, the average beat being 9.81%.
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 $3.2 billion.
Increases in monoline excess and property reinsurance are likely to have aided the Reinsurance & Monoline Excess segment’s gross premiums written. We expect the metric to be $357.9 million.
The Zacks Consensus Estimate for second-quarter 2024 premiums earned is pegged at $2.8 billion, indicating an increase of 10.8% from the year-ago reported quarter. Our estimate for the metric is also $2.8 billion.
Higher interest rates, larger fixed maturity securities portfolio and Argentine inflation-linked securities, and reduction in investment expenses are likely to have aided net investment income. The upside is likely to be partially offset by decreases in income from investment funds, real estate and equity securities. The Zacks Consensus Estimate for second-quarter 2024 net investment income is pegged at $331 million, indicating an upside of 35% from the year-ago reported figure. We estimate the metric to be $340.2 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 $3.3 billion, indicating an upside of 12.3% from the year-ago reported figure.
Expenses are expected to have increased, owing to higher investment in technology and data and analytics as well as new startup operating unit expenses. We expect total expenses to increase 9.5% to $2.7 billion.
W.R. Berkley is expected to have benefited from better pricing and increased exposure, coupled with prudent underwriting, which are likely to have aided underwriting profitability. The Zacks Consensus Estimate is currently pegged at 91. We estimate the combined ratio to be 90.3.
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 82 cents, indicating a 7.89% 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 -2.60% at present. 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.
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 +0.54% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $2.16, indicating a year-over-year increase of 12.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACGL’s earnings beat estimates in each of the last four reported quarters.
First American Financial (FAF - Free Report) has an Earnings ESP of +8.46% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.13, indicating a year-over-year decrease of 16.3%.
FAF earnings beat estimates in two of the last four reported quarters and missed twice.
Fidelity National Financial, Inc. (FNF - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.27, indicating a year-over-year increase of 25.7%.
FNF’s earnings beat estimates in one of the last four reported quarters and missed in the other three.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.