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Everest Group (EG) to Report Q2 Earnings: What's in Store?
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Everest Group, Ltd. (EG - Free Report) is slated to report second-quarter 2024 earnings on Jul 31, after market close. The insurer delivered an earnings surprise in each of the last four quarters, the average being 37.54%.
Factors to Consider
Premium growth is likely to have been driven by the solid performance of its Reinsurance segment, rate increases, exposure growth and strong underwriting. We expect net written premium to increase 28.2% to $4.7 billion in the second quarter.
The Insurance segment is likely to have benefited from an increase in property, short tail business, specialty casualty business and other specialty lines of business, as well as new business and strong renewal retention. We estimate premiums earned to increase 30.1% to $1.1 billion in the to-be-reported quarter.
The Reinsurance segment is expected to have benefited from widespread growth across business lines and geographies, including marine and aviation, as well as solid international growth, higher property cat premiums and casualty and improved property pro-rata premiums. We expect premiums earned to improve 17% to $2.7 billion in the second quarter.
Net investment income is likely to have benefited from higher assets under management and higher new money yields versus maturing assets. We expect net investment income to be $412.4 million, up 15.5% from the year-ago reported quarter.
The top line in the to-be-reported quarter is expected to have gained from higher net written premiums and net investment income. The Zacks Consensus Estimate for revenues is currently pegged at $4.38 billion, indicating a 20.2% increase from the year-ago reported figure.
Despite catastrophe losses that induce volatility in profits, underwriting results are likely to benefit from rate increases, exposure growth and traditional risk management capabilities in the to-be-reported quarter. We expect the combined ratio to be 86.7 in the to-be-reported quarter.
We estimate underwriting income in the Insurance segment of $276.7 million and $246 million in the Reinsurance segment in the to-be-reported quarter.
The Zacks Consensus Estimate for EG’s second-quarter earnings per share is currently pegged at $16.97, indicating an increase of 11.5% from the year-ago quarter’s reported figure.
What the Zacks Model Says
Our proven model does not predict an earnings beat for Everest Group this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the odds of an earnings beat. This is not the case here, as you can see below.
Earnings ESP: Everest Group has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate of $14.80 is pegged higher than the Zacks Consensus Estimate of $14.63. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: EG carries a Zacks Rank #3 at present.
Stocks to Consider
Some insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Enact Holdings, Inc. (ACT - Free Report) has an Earnings ESP of +3.88% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.03, indicating a decline of 6.3% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACT’s earnings beat estimates in each of the last four quarters.
Radian Group Inc. (RDN - Free Report) has an Earnings ESP of +4.05% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at 87 cents, indicating a decline of 4.4% from the year-ago reported figure.
RDN’s earnings beat estimates in each of the last four quarters.
Prudential Financial, Inc. (PRU - Free Report) has an Earnings ESP of +0.11% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $3.43, indicating an increase of 16.6% from the year-ago reported figure.
PRU’s earnings beat estimates in one of the last four quarters while missing in the other three.
Image: Bigstock
Everest Group (EG) to Report Q2 Earnings: What's in Store?
Everest Group, Ltd. (EG - Free Report) is slated to report second-quarter 2024 earnings on Jul 31, after market close. The insurer delivered an earnings surprise in each of the last four quarters, the average being 37.54%.
Factors to Consider
Premium growth is likely to have been driven by the solid performance of its Reinsurance segment, rate increases, exposure growth and strong underwriting. We expect net written premium to increase 28.2% to $4.7 billion in the second quarter.
The Insurance segment is likely to have benefited from an increase in property, short tail business, specialty casualty business and other specialty lines of business, as well as new business and strong renewal retention. We estimate premiums earned to increase 30.1% to $1.1 billion in the to-be-reported quarter.
The Reinsurance segment is expected to have benefited from widespread growth across business lines and geographies, including marine and aviation, as well as solid international growth, higher property cat premiums and casualty and improved property pro-rata premiums. We expect premiums earned to improve 17% to $2.7 billion in the second quarter.
Net investment income is likely to have benefited from higher assets under management and higher new money yields versus maturing assets. We expect net investment income to be $412.4 million, up 15.5% from the year-ago reported quarter.
The top line in the to-be-reported quarter is expected to have gained from higher net written premiums and net investment income. The Zacks Consensus Estimate for revenues is currently pegged at $4.38 billion, indicating a 20.2% increase from the year-ago reported figure.
Despite catastrophe losses that induce volatility in profits, underwriting results are likely to benefit from rate increases, exposure growth and traditional risk management capabilities in the to-be-reported quarter. We expect the combined ratio to be 86.7 in the to-be-reported quarter.
We estimate underwriting income in the Insurance segment of $276.7 million and $246 million in the Reinsurance segment in the to-be-reported quarter.
The Zacks Consensus Estimate for EG’s second-quarter earnings per share is currently pegged at $16.97, indicating an increase of 11.5% from the year-ago quarter’s reported figure.
What the Zacks Model Says
Our proven model does not predict an earnings beat for Everest Group this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the odds of an earnings beat. This is not the case here, as you can see below.
Earnings ESP: Everest Group has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate of $14.80 is pegged higher than the Zacks Consensus Estimate of $14.63. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Everest Group, Ltd. Price and EPS Surprise
Everest Group, Ltd. price-eps-surprise | Everest Group, Ltd. Quote
Zacks Rank: EG carries a Zacks Rank #3 at present.
Stocks to Consider
Some insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Enact Holdings, Inc. (ACT - Free Report) has an Earnings ESP of +3.88% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.03, indicating a decline of 6.3% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACT’s earnings beat estimates in each of the last four quarters.
Radian Group Inc. (RDN - Free Report) has an Earnings ESP of +4.05% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at 87 cents, indicating a decline of 4.4% from the year-ago reported figure.
RDN’s earnings beat estimates in each of the last four quarters.
Prudential Financial, Inc. (PRU - Free Report) has an Earnings ESP of +0.11% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $3.43, indicating an increase of 16.6% from the year-ago reported figure.
PRU’s earnings beat estimates in one of the last four quarters while missing in the other three.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.