The Zacks Analyst Blog Highlights Palomar, Assurant, Brighthouse Financial and Unum Group

For Immediate ReleaseChicago, IL – February 6, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Palomar Holdings PLMR, Assurant Inc. AIZ, Brighthouse Financial Inc. BHF and Unum Group UNM.Here are highlights from Wednesday’s Analyst Blog:4 Insurers Set to Outperform Estimates This Earnings SeasonFourth-quarter results of insurance, one of the Finance sector industries, are likely to reflect better pricing and exposure growth, accelerated digitalization and a favorable interest rate. However, cat losses are likely to have weighed on profitability. Per the latest Earnings Preview, the Finance sector’s fourth-quarter 2024 earnings are expected to improve 24.3%. Revenues are estimated to rise 11.2%.See the Zacks Earnings Calendar to stay ahead of market-making news.With the help of the Zacks Stock Screener, we have identified four insurers, namely Palomar Holdings, Assurant Inc., Brighthouse Financial Inc. and Unum Group, which are poised to outperform the Zacks Consensus Estimate in fourth-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 Q4 ResultsUnderwriting results, reflecting the performance of insurers, are likely to benefit from better pricing, increased exposure, solid retention, new business growth, portfolio repositioning, proper segmentation, reinsurance covers and favorable reserve development.Non-life insurers, by the nature of their business, are exposed to catastrophe losses. Thus, their profitability is vulnerable to catastrophe losses. The fourth quarter witnessed the wrath of catastrophe activities, which weighed on the profitability of insurers. CoreLogic estimated losses from Hurricane Milton to be about $34 billion with insured losses between $17 billion and $28 billion. Florida insurers are likely to have been affected the most.Higher catastrophe losses continue to provide impetus to policy renewal rates and pricing. Per recent analysis by MarketScout’s Market Barometer, the commercial insurance sector saw a composite rate increase of 2.64%. Per the report, the personal lines composite rate increased 4% in the fourth quarter of 2024.Given increased travel worldwide, auto premiums are likely to have increased. However, the loss ratio is likely to have been hampered, given increased severity per claim due to higher vehicle repair and medical costs.A stronger mortgage market is likely to have favored mortgage insurance premiums. A low unemployment rate is likely to have aided commercial insurance and group insurance.A rise in demand for protection products is likely to have driven sales for life insurers. Life insurers continue to roll out investment products that provide bundled covers of guaranteed retirement income, life and healthcare to cater to customers preferring policies with “living” benefits more than those with death benefits.Though the Federal Reserve cut rates twice in the fourth quarter, a larger investment asset base and positive returns from alternative investments limited the downside, driving investment income.Continued investment in technological advancements is likely to have driven margin expansion. Share buybacks are expected to have provided an additional upside to the bottom line.Potential Q4 OutperformersPalomar Holdings focuses on the provision of catastrophe insurance for personal and commercial property. It provides specialty property insurance products to both individuals and businesses in its target markets. Premiums are expected to have benefited from new business generated with existing partners, strong premium retention rates for existing businesses and expanded products’ geographic and distribution footprint.Higher average balance of investments and increase in fixed-income yields are likely to have favored investment income. Expenses are likely to have increased owing to higher incurred losses and loss adjustment expenses.The Zacks Consensus Estimate for PLMR’s fourth-quarter earnings is pegged at $1.24, suggesting a decrease of 11.7% from the year-ago reported figure. PLMR has an Earnings ESP of +0.27% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.Palomar Holdings, Inc. price-eps-surprise | Palomar Holdings, Inc. QuoteAssurant is a global provider of risk management solutions in the housing and lifestyle markets, protecting people’s homes and the goods they buy. Solid performance at the Global Housing segment, as well as growth in Global Lifestyle, is likely to have aided the fourth-quarter performance of Assurant. Net investment income is likely to have gained from higher yields and asset balances in fixed-maturity securities, cash and cash equivalents and short-term investments.Total benefits, losses and expenses might have escalated because of higher underwriting and selling, general and administrative expenses. Continued share buybacks are likely to have aided the bottom line in the to-be-reported quarter.The Zacks Consensus Estimate for AIZ’s fourth-quarter earnings is pegged at $3.96, suggesting a decrease of 13.5% from the year-ago reported figure. AIZ has an Earnings ESP of +9.37% and a Zacks Rank #2.Assurant, Inc. price-eps-surprise | Assurant, Inc. QuoteBrighthouse Financial is a diversified life insurance and investment management company. Improving average life insurance in-force and margin expansion initiatives are likely to aid quarterly results. A compelling suite of life and annuity products, strong market presence and the ramp-up of new sales of life insurance products are likely to have favored premium. A well-diversified and high-quality portfolio, alternative investment income and asset growth are likely to have boosted investment income. Expenses are likely to have increased owing to higher policyholder benefits and claims.The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $4.44, indicating an increase of 52.1% from the year-ago reported figure. BHF has an Earnings ESP of +0.82% and a Zacks Rank #3.Brighthouse Financial, Inc. price-eps-surprise | Brighthouse Financial, Inc. QuoteUnum Group provides long-term care insurance, life insurance, employer- and employee-paid group benefits and related services. Favorable persistency and better sales in the operating segments are likely to have favored premiums in the fourth quarter. The performance of Unum U.S. and Colonial Life, two of the largest operating segments, is likely to have been driven by higher premium income, favorable persistency, favorable benefit experience in the life and accident, sickness, and disability product lines, favorable recoveries in the long-term disability product line and favorable stop loss experience.Expenses are likely to have increased because of higher policy benefits, commissions, interest and debt expense, amortization of deferred acquisition costs and other expenses. However, share buybacks in the to-be-reported quarter are anticipated to have provided a boost to the bottom line.The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $2.13, indicating an increase of 19% from the year-ago reported figure. UNM has an Earnings ESP of +0.23% and a Zacks Rank #3.Unum Group price-eps-surprise | Unum Group QuoteWhy Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 Assurant, Inc. (AIZ): Free Stock Analysis Report Unum Group (UNM): Free Stock Analysis Report Brighthouse Financial, Inc. (BHF): Free Stock Analysis Report Palomar Holdings, Inc. (PLMR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks