US: P&C insurers in line for higher revenues, lower EPS in 3Q
Source: Middle East Insurance Review | Nov 2022
Revenues at 10 of the largest publicly traded US property and casualty insurers are expected to increase year over year in the third quarter, while 11 would see their EPS decrease, according to an S&P Global Market Intelligence examination of sell-side analyst forecasts.
Analysts also expect a majority of the 20 largest P&C and multiline insurers by total assets that are traded on major US exchanges to record a quarterly decline in EPS.
UBS analyst Brian Meredith said executives will likely talk about an accelerated pricing environment for commercial property insurers and a disciplined approach to commercial casualty pricing during their companies’ third-quarter earnings calls, both driven by insured losses and higher reinsurance prices from Hurricane Ian.
Companies expected to see a year-on-year slump in earnings include American International Group, The Allstate, CNA Financial Corporation, Arch Capital Group, W. R. Berkley, Cincinnati Financial, American Financial Group, AXIS Capital Holdings, Old Republic International and First American Financial.
Insurers fared better in the revenue portion of the analysis in both year-on-year and previous-quarter assessments, the report said. M