5 Insurers Set to Outshine Estimates This Earnings Season
Per the latest Earnings Preview, the Finance sectors third-quarter 2022 earnings are expected to decline 8.5% while revenues are estimated to improve 3.2%. Earnings of Insurance, one of the Finance sector industries, are estimated to drop 7.3% while revenues are expected to increase 1.2%. Better pricing and exposure growth are likely to have driven premiums, which in turn are expected to have aided insurers revenues.
With the help of the Zacks Stock Screener, we have identified five insurers namely, MetLife Inc. MET, Prudential Financial Inc. PRU, Reinsurance Group of America Incorporated RGA, Marsh & McLennan Companies Inc. MMC and Aflac Inc. AFL which are poised to outshine the Zacks Consensus Estimate in third-quarter earnings. These stocks have the ideal combination of two ingredients a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy), #3 (Hold) to surpass expectations. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Factors Likely to Impact Q3 Results
The third quarter of 2022 bore the brunt of Hurricane Ian. Swiss Re estimates claims stemming from Hurricane Ian claims in the range of $50 billion to $65 billion. The Progressive Corporation incurred $760 million of catastrophe losses due to Hurricane Ian in the third quarter of 2022 that weighed on its quarterly results. Arch Capital Group expects pre-tax net catastrophe losses of $530 million to $560 million across the property casualty insurance and reinsurance segments for the third quarter.
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