Arch Capital (ACGL) To Report Q2 Earnings: What's In Store?
Zacks Investment Research | Jul 23, 2019 11:12PM ET
Arch Capital Group Limited (NASDAQ:ACGL) is slated to report second-quarter 2019 results on Jul 29 after market close. The company has a solid record of delivering positive earing surprise in the last six quarters.
Let’s see how things are shaping up for this announcement.
The company’s improved property and select casualty lines pricing and prudent underwriting are expected to boost premiums.
The mortgage insurance business is likely to benefit from better credit conditions and conservative lending standards. Insurance in force is expected to improve in the to-be-reported quarter.
Strategic buyouts are expected to aid results. The Zacks Consensus Estimate for net premiums written is pegged at $1.4 billion, indicating an increase of 19.7% from the year-ago reported figure.
A benign catastrophe environment is likely to aid underwriting profitability. The Zacks Consensus Estimate for combined ratio is pegged at 80%, implying an improvement of 300 basis points.
Improved interest rate environment, reinvestment of fixed income securities at higher available yields and shift from municipal bonds to corporates are likely to aid net investment income. The Zacks Consensus Estimate for investment income is pegged at $159 million, indicating an upside of 47.2% from the year-ago reported figure.
Operating expenses are likely to weigh on margin expansion.
However, sustained buyback should boost the bottom line.
The Zacks Consensus Estimate for earnings stands at 69 cents, implying an increase of 16.9% from the year-ago quarter reported figure.
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