W.R. Berkley (WRB) to Report Q3 Earnings: What's in the Offing?
W.R. Berkley Corporation WRB is slated to report third-quarter 2022 earnings on Oct 24 after market close. The insurer delivered an earnings surprise in each of the last four quarters, the average being 29.95%.
Factors to Consider
Gross premiums written in the third quarter of 2022 are expected to have benefited from strong performing other liability, short-tail lines, commercial auto, professional liability and workers’ compensation in the Insurance segment as well as an increase in casualty reinsurance, monoline excess and property reinsurance in the Reinsurance & Monoline Excess segment.
The Zacks Consensus Estimate for third-quarter 2022 premiums earned is pegged at $2.5 billion.
Higher income from fixed maturity securities, rising interest rate environment and increase from equity securities are likely to have aided improvement in net investment income. However, a decrease in income from investment funds, arbitrage trading account as well as a decrease in real estate and higher investment expenses are expected to have weighed on the upside.
The Zacks Consensus Estimate for third-quarter 2022 net investment income is pegged at $154 million.
The expense ratio is likely to have improved on higher net premiums earned surpassing compensation expense growth.
Expenses are likely to have increased owing to higher losses and loss expenses, other operating costs and expenses and expenses from non-insurance businesses.
The Zacks Consensus Estimate for earnings is pegged at 82 cents, indicating a 6.8% decrease from the year-ago quarter reported number.
What the Zacks Model Says
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). This is not the case as you can see below.
Earnings ESP: W.R. Berkley has an Earnings ESP of -6.22%. This is because the Most Accurate Estimate is pegged at 77 cents, lower than the Zacks Consensus Estimate of 82 cents. 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 currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three stocks from the insurance industry that you may want to consider, as our model shows that these have the right combination of elements to post the earnings beat:
CNO Financial Group, Inc. CNO has an Earnings ESP of +1.72% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at 49 cents, indicating a decrease of 31.9% from the year-ago reported figure.
CNO Financial beat earnings estimates in three of the last four reported quarters while missing the same in one.
EverQuote, Inc. EVER has an Earnings ESP of +8.21% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at a loss of 41 cents, down 127.8% from the figure reported in the year-ago quarter.
EverQuote beat earnings estimates in three of the last four reported quarters while missing the same in one.
Horace Mann Educators Corporation HMN has an Earnings ESP of +28.21% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter 2022 earnings stands at 59 cents, indicating an increase of 18% from the year-ago reported figure.
Horace Mann beat earnings estimates in three of the last four reported quarters while missing the same in one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report
W.R. Berkley Corporation (WRB) : Free Stock Analysis Report
EverQuote, Inc. (EVER) : Free Stock Analysis Report
Horace Mann Educators Corporation (HMN) : Free Stock Analysis Report
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