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Insurance Stock Q4 Earnings Slated for Feb 22: PRA, Y & More

The Q4 earnings season is on its last leg as 82.2% members of the elite S&P 500 Index have reported quarterly results so far. According to the latest Earnings Preview , the performance of the 411 index members that have already reported their financial numbers this quarter indicate that total earnings increased 8% due to 4.9% higher revenues. The beat ratio is strong with 68.9% companies surpassing bottom-line expectations and 54.7% outperforming on the top-line front.

The Finance sector (one of the 16 Zacks sectors) has delivered a strong performance so far. In fact, the performance of this sector is better than any other Zacks categorized sector. Financial performance of 91.1% companies from this sector that have revealed their quarterly results shows 18.8% earnings growth on 5% increase in revenues, both on a year-over-year basis. Moreover, the beat ratio of 72% for the bottom line and 54.9% for the top line is higher than the beat ratio of the S&P 500.

The Finance sector is highly diversified and includes several industries like insurance, banks and securities exchanges to name a few.

The insurance industry was severely affected by catastrophe losses in 2016 compared with benign cat activity in 2015. It was also hit by Hurricane Matthew and earthquake in New Zealand. Companies that have already reported their results have accounted for the catastrophe loss and noted underwriting results were weighed on by the same. However, prudent underwriting practices and reserve development should offer some respite.

Though the Fed raised the interest rate, it was toward the end of Q4. Insurers, therefore, are unlikely to have benefited from the rate hike.

Nonetheless, the broader invested asset base and alternative asset classes are positives. Also, spread compression on products like fixed annuities and universal life is likely to have improved.

To sum up, core business growth, geographic expansion and strategic acquisitions, an improving employment scenario and better payroll should prove beneficial for insurance companies in Q4.

Let's find out how these four insurers might perform when they come up with their quarterly numbers on Feb 22.

Alleghany CorporationY engages in property and casualty (P&C) reinsurance and insurance businesses in the United States and internationally. In the last reported quarter, Alleghany beat the Zacks Consensus Estimate by 32.77%. Though the company has a Zacks Rank #3 (Hold), its Earnings ESP of 0.00% makes surprise prediction difficult. Both the Most Accurate Estimate and the Zacks Consensus Estimate stand at $5.78 per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

According to our proven model a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 for an earnings beat.

With respect to the surprise trend, Alleghany beat expectations in three of the last four quarters with an average surprise of 20.52%.

Alleghany Corporation Price and EPS Surprise

Alleghany Corporation Price and EPS Surprise | Alleghany Corporation Quote

ProAssurance CorporationPRA operates as a holding company for many P&C insurance companies. In the last reported quarter, ProAssurance beat the Zacks Consensus Estimate by 2.22%. Though the company has a favorable Zacks Rank #3, its Earnings ESP of 0.00% complicates surprise prediction. Both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 63 cents per share. You can see the complete list of today's Zacks #1 Rank stocks here.

With respect to the surprise trend, ProAssurance surpassed expectations in two of the last four quarters with an average surprise of 4.80%.

ProAssurance Corporation Price and EPS Surprise

ProAssurance Corporation Price and EPS Surprise | ProAssurance Corporation Quote

Amerisafe Inc . AMSF is a specialty provider of workers' compensation insurance. In the last reported quarter, Amerisafe beat the Zacks Consensus Estimate by 4.49%. Though the company has a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult. Both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.04 per share.

With respect to the surprise trend, Amerisafe beat expectations in three of the last four quarters with an average surprise of 22.12%.

AMERISAFE, Inc. Price and EPS Surprise

AMERISAFE, Inc. Price and EPS Surprise | AMERISAFE, Inc. Quote

Employers Holdings, Inc . EIG is a commercial P&C insurer primarily in the United States. In the last reported quarter, Employers Holdings beat the Zacks Consensus Estimate by 9.62%. Though the company has a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult. Both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 53 cents per share.

With respect to the surprise trend, Employers Holdings beat expectations in three of the last four quarters with an average surprise of 27.32%.

Employers Holdings Inc Price and EPS Surprise

Employers Holdings Inc Price and EPS Surprise | Employers Holdings Inc Quote

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AMERISAFE, Inc. (AMSF): Free Stock Analysis Report

ProAssurance Corporation (PRA): Free Stock Analysis Report

Alleghany Corporation (Y): Free Stock Analysis Report

Employers Holdings Inc (EIG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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