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Is a Beat in Store for Everest Group This Earnings Season?
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Everest Group, Ltd. (EG - Free Report) is slated to report third-quarter 2024 earnings on Oct. 30, after market close. EG's earnings beat estimates in three of the trailing four quarters while missing in one.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Factors to Consider
Premium growth is likely to have been driven by the solid performance of EG’s Reinsurance and Insurance segments. We expect net written premium to increase 21.3% to $4.7 billion in the third 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. New business from Mexico, Colombia and Australia is likely to have added to the upside. We estimate premiums earned to increase 6.7% to $981.7 million 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 16.4% to $3 billion in the third quarter.
The Insurance segment is likely to have benefited from product diversification, expansion of property insurance geographic footprint, international insurance expansion and new business opportunities. We expect premiums earned to improve 6.7% to $981.7 billion in the third quarter.
Net investment income is likely to have benefited from higher assets under management and higher new money yields. We expect net investment income to be $414.4 million, up 2.1% from the year-ago reported quarter. The Zacks Consensus Estimate is pegged at $478 million.
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 pegged at $4.5 billion, indicating a rise of 11.4% 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 combined ratio to be 95.9 in the to-be-reported quarter. The Consensus Estimate for the metric is pegged at 96.
We estimate underwriting income from the Insurance segment to be $77 million. The same from the Reinsurance segment is expected to be $86.9 million in the to-be-reported quarter.
The Zacks Consensus Estimate for revenues is pegged at $4.5 billion, indicating a rise of 11.4% from the year-ago reported figure.
Total claims & expenses are likely to have increased largely owing to higher incurred losses and loss adjustment expenses. We expect the metric to increase 19.5% to $3.9 billion.
The attritional loss ratio is likely to have improved owing to contributions from both segments, sustained pricing momentum, and disciplined underwriting. Share buybacks in the to-be-reported quarter are anticipated to have provided a boost to the bottom line.
The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $11.91, indicating a decrease of 15.8% from the year-ago quarter reported figure.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for EG this time around. This is because the stock has 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.
Earnings ESP: EG Group has an Earnings ESP of +8.60%. This is because the Most Accurate Estimate of $12.94 is pegged higher than the Zacks Consensus Estimate of $11.91. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Here are three insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
American Financial Group (AFG - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $2.51, indicating a year-over-year increase of 2.5%.
AFG’s earnings beat estimates in two of the last four reported quarters while missing in the other two.
Fidelity National Financial (FNF - Free Report) has an Earnings ESP of +0.30% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $1.41, indicating a year-over-year increase of 14.6%.
FNF’s earnings beat estimates in one of the last four reported quarters while missing in the other three.
RenaissanceRe (RNR - Free Report) has an Earnings ESP of +7.56% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $7.89, indicating a year-over-year decrease of 5.3%.
RNR’s earnings beat estimates in each of the last four reported quarters.
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Is a Beat in Store for Everest Group This Earnings Season?
Everest Group, Ltd. (EG - Free Report) is slated to report third-quarter 2024 earnings on Oct. 30, after market close. EG's earnings beat estimates in three of the trailing four quarters while missing in one.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Factors to Consider
Premium growth is likely to have been driven by the solid performance of EG’s Reinsurance and Insurance segments. We expect net written premium to increase 21.3% to $4.7 billion in the third 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. New business from Mexico, Colombia and Australia is likely to have added to the upside. We estimate premiums earned to increase 6.7% to $981.7 million 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 16.4% to $3 billion in the third quarter.
The Insurance segment is likely to have benefited from product diversification, expansion of property insurance geographic footprint, international insurance expansion and new business opportunities. We expect premiums earned to improve 6.7% to $981.7 billion in the third quarter.
Net investment income is likely to have benefited from higher assets under management and higher new money yields. We expect net investment income to be $414.4 million, up 2.1% from the year-ago reported quarter. The Zacks Consensus Estimate is pegged at $478 million.
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 pegged at $4.5 billion, indicating a rise of 11.4% 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 combined ratio to be 95.9 in the to-be-reported quarter. The Consensus Estimate for the metric is pegged at 96.
We estimate underwriting income from the Insurance segment to be $77 million. The same from the Reinsurance segment is expected to be $86.9 million in the to-be-reported quarter.
The Zacks Consensus Estimate for revenues is pegged at $4.5 billion, indicating a rise of 11.4% from the year-ago reported figure.
Total claims & expenses are likely to have increased largely owing to higher incurred losses and loss adjustment expenses. We expect the metric to increase 19.5% to $3.9 billion.
The attritional loss ratio is likely to have improved owing to contributions from both segments, sustained pricing momentum, and disciplined underwriting.
Share buybacks in the to-be-reported quarter are anticipated to have provided a boost to the bottom line.
The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $11.91, indicating a decrease of 15.8% from the year-ago quarter reported figure.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for EG this time around. This is because the stock has 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.
Earnings ESP: EG Group has an Earnings ESP of +8.60%. This is because the Most Accurate Estimate of $12.94 is pegged higher than the Zacks Consensus Estimate of $11.91. You can uncover the best stocks to buy or sell before they are 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 Group currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are three insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
American Financial Group (AFG - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $2.51, indicating a year-over-year increase of 2.5%.
AFG’s earnings beat estimates in two of the last four reported quarters while missing in the other two.
Fidelity National Financial (FNF - Free Report) has an Earnings ESP of +0.30% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $1.41, indicating a year-over-year increase of 14.6%.
FNF’s earnings beat estimates in one of the last four reported quarters while missing in the other three.
RenaissanceRe (RNR - Free Report) has an Earnings ESP of +7.56% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $7.89, indicating a year-over-year decrease of 5.3%.
RNR’s earnings beat estimates in each of the last four reported quarters.