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Will W.R. Berkley (WRB) Retain Beat Streak in Q4 Earnings?

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·3-min read
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W.R. Berkley Corporation WRB is slated to report fourth-quarter 2021 earnings on Jan 27 before market open. The company delivered an earnings surprise in all the three reported quarters of 2021.

Factors to Consider

Solid results across professional liability, commercial auto, other liability and short-tail lines in the Insurance segment as well as an increase in property reinsurance, monoline excess and casualty reinsurance in the Reinsurance & Monoline Excess segments are expected to have aided gross premiums written.

Net investment income in the to-be-reported quarter is likely to have benefited from higher income from investment funds, weighed down by a decrease in income from fixed maturity securities due to lower investment yields.

Loss cost trends are likely to have been impacted by COVID-related claims in certain lines of business as well as other effects of COVID-19 associated with economic conditions, inflation, and social-distancing and work-from-home rules.

W.R. Berkley expects COVID-19 to affect contingency and event cancellation, workers’ compensation, and other lines of business.

The expense ratio is likely to have improved on a rate rise in its business mix, increase in net premiums earned and lower cost due to less travel and entertainment.

Continued share buyback is likely to have provided additional upside to the bottom line.

Expenses are expected to have risen on higher losses and loss expenses and other operating costs and expenses and expenses from non-insurance businesses.

The Zacks Consensus Estimate for earnings is pegged at $1.21, indicating a 31.5% increase from the year-ago quarter reported number.

What the Zacks Model Says

Our proven model predicts an earnings beat for W.R. Berkley 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).

Earnings ESP: W.R. Berkley has an Earnings ESP of +4.41%. This is because the Most Accurate Estimate of $1.26 is pegged higher than the Zacks Consensus Estimate of $1.21. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

W.R. Berkley Corporation Price and EPS Surprise

W.R. Berkley Corporation Price and EPS Surprise
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.

Other Stocks to Consider

Some insurance stocks also with the right combination of elements to deliver an earnings beat this time around are:

Arch Capital Group ACGL has an Earnings ESP of +1.48% and a Zacks Rank of 2. The Zacks Consensus Estimate for Arch Capital’s fourth-quarter earnings is pegged at $1.02, indicating an increase of 82.1% from the year-ago reported figure.

Arch Capital delivered an earnings beat in all the three reported quarters of 2021.

Allstate Corporation ALL has an Earnings ESP of +3.48% and a Zacks Rank #3. The Zacks Consensus Estimate for Allstate’s fourth-quarter earnings is pegged at $2.83, indicating a decrease of 51.8% from the year-ago reported figure.

Allstate beat earnings estimates in two of the three reported quarters of 2021 while missing in one.

The Progressive Corporation PGR has an Earnings ESP of +0.34% and a Zacks Rank of 3. The Zacks Consensus Estimate for Progressive’s fourth-quarter earnings is pegged at 99 cents, indicating a decrease of 45.9% from the year-ago reported figure.

Progressive beat earnings estimates in one of the three reported quarters of 2021 while missing in two.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

W.R. Berkley Corporation (WRB) : Free Stock Analysis Report

The Allstate Corporation (ALL) : Free Stock Analysis Report

The Progressive Corporation (PGR) : Free Stock Analysis Report

Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report

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