The Progressive Corporation, an insurance holding company, provides personal and commercial auto, personal residential and commercial property, business related general liability, and other specialty property-casualty insurance products and related services in the United States. It operates in three segments: Personal Lines, Commercial Lines, and Property. The Personal Lines segment writes insurance for personal autos and recreational vehicles (RV). This segment's products include personal auto insurance; and special lines products, including insurance for motorcycles, ATVs, RVs, watercrafts, snowmobiles, and related products. The Commercial Lines segment provides auto-related liability and physical damage insurance, and business-related general liability and property insurance for autos, vans, and pick-up trucks used by small businesses, as well as non-fleet taxis, black-car services, and airport taxis; tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses, and long-haul operators; dump trucks used by light contractors and heavy constructions; log trucks and garbage trucks used by dirt, sand and gravel, logging, garbage/debris removal, and coal-type businesses; and tow trucks and wreckers used in towing services and gas/service station businesses. The Property segment writes residential property insurance for homeowners, other property owners, and renters, as well as offers manufactured homes, personal umbrella insurance, and primary and excess flood insurance. The company offers policy issuance and claims adjusting services; acts as an agent to homeowners, general liability, workers' compensation insurance, and other products; and reinsurance services. It sells its products through independent insurance agencies, as well as through mobile applications and over the phone. The Progressive Corporation was founded in 1937 and is headquartered in Mayfield Village, Ohio.

Progressive looks like a high-quality insurance business with very high return on capital and stable earnings, but the market is already pricing this in at a noticeable premium. P/E of 11.52 and P/FCF of 8.07 are below the industry medians, which supports the idea of moderate undervaluation on earnings and cash flow, while P/S of 1.49 also looks restrained. At the same time, P/B of 4.13 is significantly above the median, and this is precisely what limits re-rating potential: investors are already paying for strong return on capital and stability. ROE of 35.45%, ROA of 9.59%, and ROI of 28.99% are at a very high level and remain stable over the years, confirming the business’s high quality. Net margin of 12.92% and operating margin of 17.23% also look solid, although compared with the industry they do not appear extremely high, as return-on-capital metrics do. Revenue, net income, and operating income continue to show positive momentum at a high absolute level, with no signs of a sharp deterioration. Equity and assets are growing, which supports fundamental resilience, but liquidity is weak: current ratio of 0.27 and quick ratio of 0.00 indicate a low buffer of short-term flexibility, a typical risk for an insurance balance sheet. Debt burden is overall moderate at a debt/equity ratio of 0.26, but the increase in long-term debt to 8.39 billion requires attention. Dividend yield of around 4% looks stable, but it is not a driver of strong re-rating. Overall, the fundamentals support the current valuation with a slight positive bias rather than justify aggressive upside in the target price. For an investor, this is a story of high quality and efficiency, but with limited upside because of an already expensive book multiple and weak liquidity.

Progressive Corporation (The)

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, незначительно вырос. Рынок на стороне быков.

Strong index, slightly up. The market is on the bulls' side.

Сильный индекс, незначительно упал. Приток средств в лонги на высоком уровне.

Strong index, slightly down. Inflow of funds into longs at a high level.

High profitability and low P/E, P/S, and P/FCF support the valuation, but a high P/B and weak liquidity limit upside potential.

Shares of Berkshire Hathaway Inc. BRK.B have gained 7.3% in a year, underperforming the industry’s 9.8% increase, the Finance sector’s rise of 14.2% and the Zacks S&P 500 composite’s gain of 19.2% in the same time frame.
Berkshire Hathaway is a conglomerate with more than 90 subsidiaries engaged in diverse business activities. This provides it stability in various economic cycles.
BRK.B vs Industry, Sector, S&P 500 in a Year
Image Source: Zacks Investment Research
BRK.B’s peer, Chubb Limited CB, has gained 36.3% in a year, while another peer, The Progressive Corporation PGR, has lost 8.4% in the same time frame.
BRK.B is Expensive
Shares of Berkshire Hathaway are trading on par with its industry. The stock is currently trading at a price-to-book multiple of 1.52, but above the five-year median of 1.45. It has a Value Score of D.
Image Source: Zacks Investment Research
Berkshire Hathaway is relatively cheap compared with PGR and CB.
The Case for BRK.B Stock
Berkshire Hathaway’s insurance operations remain central to its business, generating nearly a quarter of total revenues and supporting long-term value creation. Disciplined underwriting, extensive market reach and consistent profitability across economic cycles strengthen the segment. Its greatest advantage is the substantial insurance float, which provides low-cost capital for investments across Berkshire’s diversified portfolio.
The company continues to reshape its investment portfolio to enhance income stability and geographic diversification. Recent moves include increasing stakes in Japanese trading houses, expanding housing-related investments and strengthening airline exposure while reducing holdings in payment companies.
Berkshire’s operating subsidiaries further stabilize earnings. Berkshire Hathaway Energy generates predictable cash flows through its regulated utility operations while expanding renewable-energy capacity. This positions the business to benefit from electrification, decarbonization and the transition to cleaner energy.
BNSF Railway also remains a valuable asset. Its extensive freight network and exposure to essential transportation demand provide a durable competitive advantage, although softer freight volumes and lower fuel-surcharge revenues may put pressure on near-term results.
The Manufacturing, Service and Retail businesses add another layer of diversification. Although more sensitive to economic conditions, these operations offer meaningful upside when stronger demand supports higher sales and margins.
Berkshire’s exceptional financial strength remains a key advantage. Cash and U.S. Treasury holdings exceeded $370 billion at the end of 2025, providing substantial acquisition capacity and steady investment income. Meanwhile, insurance float reached $176.9 billion as of March 31, 2026, reinforcing Berkshire’s ability to fund investments efficiently and compound shareholder value over the long term.
Berkshire Hathaway’s Return on Capital
Return on equity (ROE) in the trailing 12 months was 6.6%, underperforming the industry average of 7.4%. Return on equity, a key profitability measure, reflects how effectively a company utilizes its shareholders’ funds. It is noteworthy that though BRK.B’s ROE lags the industry average, the metric has been improving consistently.
The same holds true for return on invested capital (ROIC), which has increased every year since 2020. This reflects BRK.B’s efficiency in utilizing funds to generate income. However, ROIC in the trailing 12 months was 5.4%, lower than the industry average of 5.7%.
Optimistic Analyst Sentiment on BRK.B
The Zacks Consensus Estimate for 2026 revenues indicates a 3.8% year-over-year increase, while the same for earnings implies a 1.2% year-over-year increase. The consensus estimate for 2027 revenues and EPS indicates a year-over-year increase.
The consensus estimate for 2026 and 2027 earnings has moved 0.2% north each, respectively, in the past 30 days.
Image Source: Zacks Investment Research
The consensus estimate for CB’s 2026 earnings has moved north, but that for 2027 has moved south in the past 30 days.
Estimates for PGR’s 2026 earnings have moved north but those for 2027 have moved south in the same time frame.
Parting Thoughts on BRK.B Shares
Berkshire Hathaway has been a cornerstone of investor portfolios for decades, generating steady shareholder value under Warren Buffett’s nearly 60-year leadership. The spotlight now shifts to the next chapter, with Greg Abel as CEO, while Buffett remains executive chairman.
Given analysts' optimism and solid growth prospects, it’s time to add this Zacks Rank #2 (Buy) stock to one’s portfolio. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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BRK.B Lags Industry in a Year: Is the Stock Still a Buy?

The Hanover Insurance Group, Inc. THG reported second-quarter 2026 operating earnings of $5.31 per share, up 22.1% year over year. The figure beat the Zacks Consensus Estimate of $3.88 by 36.9%.
Total revenues increased 4.6% year over year to $1.72 billion but missed the consensus mark of $1.73 billion by 0.4%. Results benefited from stronger Personal Lines underwriting, lower catastrophe losses and higher net investment income. The consolidated combined ratio improved to 91.2%.
THG Underwriting Results Improve
The consolidated loss and loss adjustment expense ratio improved 1.7 percentage points year over year to 60.2%. Catastrophe losses totaled $91.8 million, contributing 5.7 points to the combined ratio, compared with a catastrophe ratio of 7% in the prior-year quarter.
The combined ratio excluding catastrophes remained unchanged at 85.5%. The current accident year loss and LAE ratio excluding catastrophes improved 30 basis points to 55.8%, while favorable prior-year reserve development contributed 1.3 points. Net premiums earned increased to $1.60 billion from $1.55 billion.
The Hanover Insurance Group, Inc. Price, Consensus and EPS Surprise
The Hanover's Core Commercial Growth Accelerates
Core Commercial net premiums written rose 7.2% year over year to $574.8 million. Growth accelerated from the first quarter, supported by increases of 6% in small commercial and 9.4% in the middle market. Renewal price increases averaged 7.8%, including rate increases of 7%.
Segment profitability weakened despite the faster premium growth. Operating income before taxes declined to $77.5 million from $83.9 million, while the combined ratio increased to 95.7% from 93%. The current accident year combined ratio excluding catastrophes deteriorated 1.8 points to 91.2%, reflecting higher liability loss selections and a difficult comparison with unusually low property losses a year earlier.
THG Specialty Underwriting Margins Narrow
Specialty net premiums written increased 4.4% to $384.4 million, reflecting improved growth momentum from the first quarter. Renewal pricing rose 3.6%, including average rate increases of 2.1%.
Operating income before taxes declined to $68.4 million from $71.2 million. The combined ratio increased to 88.3% from 86.5%, as the current accident year loss and LAE ratio, excluding catastrophes, rose 2.6 points to 51.6%. Lower catastrophe losses provided some support, falling to $10 million from $14.6 million.
The Hanover's Personal Lines Results Strengthen
Personal Lines net premiums written increased 2.6% year over year to $697.6 million. Growth reflected higher new business and continued renewal pricing, with renewal price increases averaging 8.7% and rate increases averaging 4.8%. Policies in force were essentially unchanged sequentially.
Operating income before taxes surged to $104.9 million from $57.4 million. The combined ratio improved 6.6 points to 88.9%, aided by lower catastrophe losses and better underlying loss experience. The current accident year combined ratio, excluding catastrophes, improved to 81.9% from 84.8%, as earned pricing exceeded loss trends and property claim frequency remained favorable.
THG Investment Income and Capital Position Advance
Net investment income increased 13.4% year over year to $119.6 million, driven by operating cash flows and higher earned yields. The portfolio’s pretax earned yield increased to 4.28% from 4.11%, while the fixed-maturity yield improved to 4.45% from 4.24%.
The Hanover ended June with $11.2 billion in cash and invested assets. Book value per share increased 3.5% from March 31, 2026, to $105.40. During the quarter, THG repurchased about 0.3 million shares for approximately $55 million. Through July 24, repurchases totaled roughly 0.8 million shares for $149 million, leaving about $660 million under the company’s authorization.
Zacks Rank
THG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Progressive Corporation’s PGR second-quarter 2026 earnings per share of $4.85 beat the Zacks Consensus Estimate by 3.2%. The bottom line, however, decreased 6.1% year over year. Net premiums written were $21.1 billion in the quarter, up 5% from $20.1 billion a year ago.
Net premiums earned grew 6% to $21.6 billion. The reported figure met the Zacks Consensus Estimate. Net realized gains on securities were $604 million, up 56% year over year. Combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 110 basis points from the prior-year quarter’s level to 87.1.
The Travelers Companies, Inc. TRV reported second-quarter 2026 core income of $10.04 per share, which beat the Zacks Consensus Estimate of $5.21 by 92.7%. The bottom line climbed 54% year over year. Revenues of $12.09 billion missed the Zacks Consensus Estimate of $12.27 billion by 1.5%.
Net investment income rose 14% year over year to $1.07 billion pre-tax ($883 million after tax). The combined ratio improved 670 basis points year over year to 83.6%, reflecting lower catastrophe losses, stronger reserve development and a better underlying combined ratio.
W.R. Berkley Corporation WRB reported second-quarter 2026 operating income of $1.27 per share, which beat the Zacks Consensus Estimate by 16.5%. The bottom line increased 21% year over year. Operating revenues totaled $3.8 billion, up 3.6% year over year. The top line surpassed the consensus estimate by 1.87%.
W.R. Berkley’s net premiums written were about $3.4 billion, up 2.4% year over year. The consolidated combined ratio (a measure of underwriting profitability) improved 160 basis points year over year to 90, missing the Zacks Consensus Estimate of 92.
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THG Q2 Earnings Beat on Personal Lines Gains, Revenues Miss

Berkshire Hathaway BRK.B is expected to witness an improvement in its top and bottom lines when it reports second-quarter 2026 results.
The Zacks Consensus Estimate for BRK.B’s second-quarter revenues is pegged at $95.3 billion, indicating a 3% increase from the year-ago reported figure.
The consensus estimate for earnings is pegged at $5.24 per share. The Zacks Consensus Estimate for BRK.B’s second-quarter earnings has moved 1% north in the past 30 days.
BRK.B’s Decent Earnings Surprise History
Berkshire Hathaway’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in two, the average surprise being 7.98%. This is depicted in the following chart.
What the Zacks Model Unveils for Berkshire Hathaway
Our proven model does not conclusively predict an earnings beat for Berkshire this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat. This is not the case, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: BRK.B has an Earnings ESP of -5.53%. This is because the Most Accurate Estimate of $4.95 is pegged lower than the Zacks Consensus Estimate of $5.24.
Berkshire Hathaway Inc. Price and EPS Surprise
Zacks Rank: BRK.B currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Shape BRK.B’s Q2 Results
Berkshire Hathaway’s insurance operations are expected to have benefited from favorable pricing, strong policy retention, higher average auto premiums, broader market exposure and favorable reserve development in the second quarter. A relatively benign catastrophe environment likely supported underwriting profitability, while continued insurance growth probably expanded the company’s float.
GEICO’s results are likely to reflect policy growth, higher average premiums, lower claims frequency and improved operating efficiency. Insurance investment income may also have increased, supported by higher yields and a larger asset base.
BNSF’s performance could have been pressured by an unfavorable business mix and lower fuel-surcharge revenues. However, higher unit volumes, workforce productivity gains and lower operating expenses are likely to have been offsets.
The utilities and energy segment is expected to have benefited from stronger natural gas pipeline and other energy operations. Meanwhile, Berkshire’s service and retail businesses are likely to have gained from improving economic conditions, stronger consumer activity, revenue growth and margin expansion.
Share buybacks are likely to have supported the bottom line.
BRK.B’s Price Performance & Valuation
The stock has underperformed the industry, its sector and the S&P 500 in the second quarter of 2026.
Image Source: Zacks Investment Research
The stock is trading at a price-to-book value of 1.47X, in line with the industry. It is attractively valued compared with other insurers like The Progressive Corporation PGR and The Allstate Corporation ALL.
Image Source: Zacks Investment Research
Investment Thesis
Berkshire Hathaway’s insurance operations remain central to its business model, generating roughly a quarter of total revenues and supporting long-term growth. Although catastrophe losses can cause volatility in underwriting results, Berkshire’s diversified businesses provide considerable financial stability.
Insurance float—the premiums collected before claims are paid—expanded from about $114 billion in 2017 to $176.9 billion at the end of the first quarter of 2026. This large, low-cost funding base enables Berkshire to invest in high-quality assets and businesses, including Apple, Coca-Cola, BNSF Railway and its utility operations, strengthening long-term earnings potential.
Berkshire’s robust balance sheet and substantial liquidity support continued share repurchases, reflecting disciplined capital allocation and helping enhance shareholder value over time.
How to Play BRK.B Stock
Berkshire Hathaway, a conglomerate with over 90 subsidiaries spanning a wide range of industries, brings diversification and dynamism to shareholders’ portfolios. The spotlight now shifts to the next chapter, with Greg Abel as CEO.
Berkshire’s insurance business is likely to have benefited from a well-performing insurance business as well as higher interest income from short-term investments. Continued strong performance across all other segments instills confidence in long-term growth. It will be a wise move to add the stock to one's portfolio.
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Should BRK.B Stock Be in Your Portfolio Ahead of Q2 Earnings?

Key Points
Insurance companies collect premiums up front and pay out on claims in the future, which creates what is known as the float.
Insurance companies like Berkshire Hathaway get to use the premiums they collect until claims are paid.
Insurance companies invest the float in very different ways.
There are two aspects of an insurance company that investors need to monitor. The first is how well they run their insurance operations. The second is how well they manage the float. The float is why insurance companies can be some of the market's best long-term compounders.
There are material differences between how insurance companies manage the float. At one extreme are companies like Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) and Cincinnati Financial (NASDAQ: CINF), and at the other are companies like Progressive (NYSE: PGR) and Chubb (NYSE: CB). Here's what you need to know before buying any of these insurance stocks.
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Warren Buffett created a model that others want to follow
All insurance companies try to write policies profitably, so they collect more in premiums than they pay out in claims. The key metric to monitor on this front is the combined ratio. A number below 100% means a company is making a profit. Big events can push that number above 100% temporarily, so you really want to see it below 100% most of the time, not all of the time.
That said, the main reason insurance companies are powerful compounders is that they can invest the premiums they collect while they wait for claims to come in. This money is known as the float. Warren Buffett, the former CEO of Berkshire Hathaway, often spoke about this. It was one of the keys to his company's long-term success.
Buffett was particularly aggressive with the float, investing it in stocks and even buying whole companies. Eventually, Berkshire Hathaway turned into a giant conglomerate. Buffett's successor, Greg Abel, for example, recently bought homebuilder Taylor Morrison. His plan is to eventually integrate this business with other housing-related businesses Berkshire Hathaway owns. Some of the stocks in which Berkshire Hathaway is invested include iconic companies like Coca-Cola (NYSE: KO) and American Express (NYSE: AXP).
Other companies have tried to use the same approach Buffett has, including Market Group (NYSE: MKL) and, more recently, Brookfield Corporation (NYSE: BN) and Howard Hughes (NYSE: HHH). All three could be defined as investment-led insurance companies.
Cincinnati Financial has a similar approach, but isn't as aggressive. The company releases its full portfolio of holdings every quarter. At the end of the first quarter of 2026, equities accounted for approximately 39% of the company's investment portfolio. However, Cincinnati Financial doesn't buy entire companies. For less aggressive investors, it could be a better option than companies that follow the more aggressive Berkshire Hathaway model.
A more traditional approach
Most insurance companies are much less aggressive. For example, Progressive's equity investments were around 4.5% of its total portfolio at the end of the first quarter of 2026. Chubb's equity exposure was higher at around 16.5%, including private equity investments. Both are well below the 50% that Cincinnati Financial approaches.
Most of Progressive and Chubb's investments are in bonds. The goal is simply to generate a reliable income stream from the float to support earnings. Meanwhile, the bonds remain available for sale should a large event push claims higher. Investing more in stocks increases the risk that a large claim event could come during a bear market, forcing equity to be sold at a loss. That said, while bonds tend to be less volatile, they don't provide the capital gains opportunity of stocks. There's a balance, and most insurance companies tend to err on the side of caution.
That doesn't mean that investors should avoid companies like Progressive and Chubb. It simply suggests that they don't provide the upside potential of Berkshire Hathaway. A lower risk profile, however, may be more appropriate for some long-term investors. With greater equity exposure comes greater risk during a bear market, when the value of an equity portfolio generally falls. It is also worth noting that many companies that follow the Berkshire model don't pay dividends, whereas Progressive and Chubb do.
The middle ground?
Cincinnati Financial is probably a good middle ground for investors who want to benefit from the compounding power of owning stocks, but don't want the risk of buying entire companies. This insurer is a Dividend King, with over 50 years of annual dividend increases. Still, the float is the secret sauce that turns a boring business like writing insurance into a powerful compounding tool for shareholders. But don't just buy an insurance company, dig in and make sure you understand how it uses the float.
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American Express is an advertising partner of Motley Fool Money. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express, Berkshire Hathaway, Brookfield Corporation, Howard Hughes, and Markel Group. The Motley Fool recommends Progressive. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Insurance Stocks Can Be Some of the Market's Best Long-Term Compounders

For Immediate Release
Chicago, IL – July 27, 2026 – 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: Intel Corp. INTC, Dell Technologies Inc. DELL and The Progressive Corp. PGR.
Top Research Reports for Intel, Dell and Progressive
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Intel Corp., Dell Technologies Inc. and The Progressive Corp. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
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Today's Featured Research Reports
Intel’s shares have outperformed the Zacks Semiconductor - General industry over the year-to-date period (+171.6% vs. +20.2%). The company remains focused on strengthening its capabilities in AI infrastructure, enterprise computing and advanced manufacturing through product innovation and continued ecosystem development. Rising adoption of Xeon processors and Intel 18A-based products, together with momentum in networking, AI infrastructure and edge deployments, supports its long-term growth.
Recent adoption of Intel Xeon 6 processors and Intel Arc Pro GPUs for sovereign AI deployments highlights growing enterprise acceptance of Intel’s AI computing platform and expands opportunities in secure on-premises AI environments. Growing traction in the autonomous car technology market is a positive.
However, fierce competition in the server, storage and networking markets is hindering margin. Manufacturing execution risks, geopolitical uncertainty, remain concerns.
(You can read the full research report on Intel here >>>)
Shares of Dell have outperformed the Zacks Computer - Micro Computers industry over the year-to-date period (+252.3% vs. +23.4%). The company is seeing demand for AI servers stay ahead of supply as customers accelerate deployments and lock in capacity. In first quarter fiscal 2027, the company booked $24.4 billion of AI orders, delivered $16.1 billion of AI server revenue, and ended with a $51.3 billion AI backlog.
Management raised fiscal 2027 revenue guidance to $165-$169 billion and lifted expected AI server revenue to about $60 billion. ISG profitability improved year over year, and traditional servers, storage and commercial PCs are expanding, supporting cash flow and continued buybacks and dividends. DELL’s core leverage ratio was 1.2x exiting the quarter, but the balance sheet remains geared.
However, unfavorable AI mix and memory constraints continue to keep gross margin under pressure. Competitive pricing, and unfavorable forex are other headwinds.
(You can read the full research report on Dell here >>>)
Progressive’s shares have underperformed the Zacks Insurance - Property and Casualty industry over the year-to-date period (-3.2% vs. +0.6%). Due to non-conducive geopolitical landscape and macro uncertainties the company could face reduced demand for autos, which is having a corresponding negative impact on its growth prospects.
Also, it has a reinsurance program to offset some of its losses and a strong financial position overall. All these positives have led to the overvaluation of its shares, the main factor keeping us on the sideline.
Nevertheless, Progressive continues to gain on higher premiums, given its compelling product portfolio and strength in Personal auto, contributing about 75% of total premiums. Rate increases, personal auto application increases, improving retention rates and a strong independent agents' network should drive long-term premium growth and generate steady revenues. Investment in digital transformation should support this strength.
(You can read the full research report on Progressive here >>>)
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Past 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.
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The Zacks Analyst Blog Highlights INTC, DELL and PGR

Friday, July 24, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Intel Corp. (INTC), Dell Technologies Inc. (DELL) and The Progressive Corp. (PGR). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
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The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Tensions Ease Slightly Ahead of Friday Trading
Today's Featured Research Reports
Intel’s shares have outperformed the Zacks Semiconductor - General industry over the year-to-date period (+171.6% vs. +20.2%). The company remains focused on strengthening its capabilities in AI infrastructure, enterprise computing and advanced manufacturing through product innovation and continued ecosystem development. Rising adoption of Xeon processors and Intel 18A-based products, together with momentum in networking, AI infrastructure and edge deployments, supports its long-term growth.
Recent adoption of Intel Xeon 6 processors and Intel Arc Pro GPUs for sovereign AI deployments highlights growing enterprise acceptance of Intel’s AI computing platform and expands opportunities in secure on-premises AI environments. Growing traction in the autonomous car technology market is a positive.
However, fierce competition in the server, storage and networking markets is hindering margin. Manufacturing execution risks, geopolitical uncertainty, remain concerns.
(You can read the full research report on Intel here >>>)
Shares of Dell have outperformed the Zacks Computer - Micro Computers industry over the year-to-date period (+252.3% vs. +23.4%). The company is seeing demand for AI servers stay ahead of supply as customers accelerate deployments and lock in capacity. In first quarter fiscal 2027, the company booked $24.4 billion of AI orders, delivered $16.1 billion of AI server revenue, and ended with a $51.3 billion AI backlog.
Management raised fiscal 2027 revenue guidance to $165-$169 billion and lifted expected AI server revenue to about $60 billion. ISG profitability improved year over year, and traditional servers, storage and commercial PCs are expanding, supporting cash flow and continued buybacks and dividends. DELL’s core leverage ratio was 1.2x exiting the quarter, but the balance sheet remains geared.
However, unfavorable AI mix and memory constraints continue to keep gross margin under pressure. Competitive pricing, and unfavorable forex are other headwinds.
(You can read the full research report on Dell here >>>)
Progressive’s shares have underperformed the Zacks Insurance - Property and Casualty industry over the year-to-date period (-3.2% vs. +0.6%). Due to non-conducive geopolitical landscape and macro uncertainties the company could face reduced demand for autos, which is having a corresponding negative impact on its growth prospects.
Also, it has a reinsurance program to offset some of its losses and a strong financial position overall. All these positives have led to the overvaluation of its shares, the main factor keeping us on the sideline.
Nevertheless, Progressive continues to gain on higher premiums, given its compelling product portfolio and strength in Personal auto, contributing about 75% of total premiums. Rate increases, personal auto application increases, improving retention rates and a strong independent agents' network should drive long-term premium growth and generate steady revenues. Investment in digital transformation should support this strength.
(You can read the full research report on Progressive here >>>)
Other noteworthy reports we are featuring today include GSK plc (GSK), 3M Co. (MMM) and SEI Investments Co. (SEIC).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
GSK Specialty Medicines Unit Aids Revenues Amid Vaccine Slowdown
Per the Zacks analyst, GSK's Specialty Medicines unit is witnessing increased sales growth, with sales rising in HIV, respiratory and oncology. However, softer Vaccines segment sales are a concern.
Safety and Industrial Segment Aids 3M (MMM) Amid Forex Woes
Per the Zacks analyst, 3M will benefit from robust momentum in the Safety and Industrial unit, led by strength in industrial adhesives and electrical markets. However, forex woes remain concerning.
Urban Outfitters (URBN) Rides Brand and Nuuly Momentum
Per the Zacks analyst, Urban Outfitters' (URBN) multi-brand strength, FP Group's sustained growth and Nuuly's rapid subscriber expansion continue to support its long-term growth trajectory.
Fleet Management Solutions Aid WEX (WEX), No Dividends Ail
Per the Zacks analyst, WEX's strong fleet management solutions ensure revenue growth, but the absence of cash dividends may deter income-focused shareholders.
Dave Inc. (DAVE) Gains on CashAI, Short-Term Liquidity Demand Focus
Per the Zacks analyst, Dave gains from persistent short-duration liquidity demand focus, with CashAI-led underwriting turning engagement into stronger monetization while keeping losses contained.
Certification Progress & Commercial Readiness Aid Archer (ACHR)
Per the Zacks analyst, Archer is benefiting from continued FAA certification progress, expanding flight testing, and a strong liquidity position to support its 2026 commercialization milestones.
Neogen (NEOG) Food Safety Arm Drives Growth, Debt Burden Woes Stay
The Zacks analyst is impressed with a robust growth within Neogen's Food Safety arm banking on several long-term secular tailwinds. Yet, a balance sheet with a high debt burden is worrisome.
New Upgrades
Technology, Buyouts, Partnerships, AUM Support SEI Investments (SEIC)
Per the Zacks analyst, digital growth strategy, LSV contribution, solid assets under management balance, strategic buyouts, global presence and financial flexibility will aid SEI Investments' growth.
Contract Wins and Strategic Acquisitions Aid Molina Healthcare (MOH)
Per the Zacks analyst, Molina Healthcare benefits from consistent contract wins, disciplined acquisitions and expanding government healthcare opportunities, supporting earnings growth.
PBF Energy's (PBF) High-Complexity, Diversified Refining Network Aids
Per the Zacks analyst, PBF Energy's highly complex refining systems support the processing of diverse crude slates into higher-value fuels. Its cost-saving initiatives enhance profitability.
New Downgrades
High Leverage & Volatile Gas Prices to Hurt Comstock Resources (CRK)
Per the Zacks analyst, CRK faces headwinds from high leverage, capital intensity, volatile gas prices, execution risks and the lack of dividends, limiting cash flow visibility and investor returns.
Expected Decline in Volumes, Access Segment Weakness Ail Oshkosh (OSK)
Per the Zacks analyst, Oshkosh expects refuse vehicle volumes to fall 25-30% in 2026, which is likely to weigh on its top-line growth. Margin pressure in the Access segment is also concerning.
Macao Hold Volatility & High Costs Ail Las Vegas Sands (LVS) Prospects
Per the Zacks analyst, Las Vegas Sands is grappling with low rolling-play hold in Macao, high costs, and capital expenditures. Also, competitive pressures remain a headwind.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Research Reports for Intel, Dell & Progressive

Kinsale Capital Group, Inc. KNSL delivered second-quarter 2026 net operating earnings of $5.54 per share, which outpaced the Zacks Consensus Estimate by 8.6%. The bottom line increased 15.9% year over year.
Operating revenues increased 16.8% year over year to $548.5 million, which surpassed the Zacks Consensus Estimate by 12.3%.
The quarterly results benefited from growth in net earned premiums, increased net investment income, favorable prior-year reserve development and disciplined underwriting. However, these gains were partially offset by lower gross written premiums and higher operating expenses.
Kinsale Capital Group, Inc. Price, Consensus and EPS Surprise
KNSL’s Operational Update
Gross written premiums of $527.6 million decreased 5% year over year, primarily due to a 32.7% decline in the Commercial Property Division. Net written premiums declined 1.4% year over year to $452.5 million.
Net investment income increased 19.9% year over year to $55.7 million. The increase was primarily driven by growth in the company’s investment portfolio. However, net investment income missed the Zacks Consensus Estimate by 4.7%.
Total expenses increased 9% year over year to $328.7 million due to higher underwriting, acquisition and insurance expenses, interest expense and other operating expenses. Our model estimate was $342.4 million.
Kinsale Capital’s underwriting income was $105.4 million, up 10.5% year over year. The increase was driven by growth in net earned premiums, higher favorable development of loss reserves from prior accident years, partially offset by lower ceding commissions. Underwriting income surpassed our model estimate of $70.8 million.
The combined ratio improved 30 basis points (bps) year over year to 75.5 compared with the Zacks Consensus Estimate of 78.6. The loss ratio improved 130 bps to 53.8, reflecting favorable reserve development. The expense ratio deteriorated 100 bps year over year to 21.7.
KNSL’s Financial Update
Kinsale Capital exited the second quarter of 2026 with cash and cash equivalents of $210.5 million, up 28.9% from the 2025-end level.
As of June 30, 2026, stockholders' equity increased 3.9% from the 2025-end level to approximately $2.04 billion.
Book value per share was $89.34 as of June 30, 2026, up 5.5% from the 2025-end level.
Annualized operating return on equity deteriorated 30 bps year over year to 24.4% in the reported quarter.
KNSL’s Capital Deployment
KNSL repurchased 0.3 million shares for $100 million in the second quarter of 2026. In July 2026, the board approved an additional $250 million share repurchase authorization, increasing the remaining capacity under the program to $337.5 million.
KNSL paid a cash dividend of 25 cents per share in the second quarter of 2026.
KNSL’s Zacks Rank
KNSL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Progressive Corporation’s PGR second-quarter 2026 earnings per share of $4.85 beat the Zacks Consensus Estimate by 3.2%. The bottom line, however, decreased 6.1% year over year. Net premiums written were $21.1 billion in the second quarter, up 5% from $20.1 billion a year ago.
Net premiums earned grew 6% to $21.6 billion. The reported figure met the Zacks Consensus Estimate. Net realized gains on securities were $604 million, up 56% year over year. The combined ratio, the percentage of premiums paid out as claims and expenses, deteriorated 110 basis points from the prior-year quarter’s level to 87.1.
The Travelers Companies, Inc. TRV reported second-quarter 2026 core income of $10.04 per share, which beat the Zacks Consensus Estimate of $5.21 by 92.7%. The bottom line climbed 54% year over year. Revenues of $12.09 billion missed the Zacks Consensus Estimate of $12.27 billion by 1.5%.
Net investment income rose 14% year over year to $1.07 billion pre-tax ($883 million after tax). The combined ratio improved 670 basis points year over year to 83.6%, reflecting lower catastrophe losses, stronger reserve development and a better underlying combined ratio.
W.R. Berkley Corporation WRB reported second-quarter 2026 operating income of $1.27 per share, which beat the Zacks Consensus Estimate by 16.5%. The bottom line increased 21% year over year. Operating revenues totaled $3.8 billion, up 3.6% year over year. The top line surpassed the consensus estimate by 1.87%.
W.R. Berkley’s net premiums written were about $3.4 billion, up 2.4% year over year. The figure surpassed our estimate of $3.4 billion. The consolidated combined ratio (a measure of underwriting profitability) improved 160 basis points year over year to 90, missing the Zacks Consensus Estimate of 92.
7 Best Stocks for the Next 30 Days
Just 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 +23.9% 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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

KNSL Q2 Earnings Beat on Higher Underwriting & Investment Income

Universal Insurance Holdings UVE delivered adjusted earnings of $1.84 per share for the second quarter of 2026, up 49.6% year over year. Earnings beat the Zacks Consensus Estimate of $1.43 by 28.7%.
Total revenues increased 6.7% to $427 million and surpassed the consensus estimate of $382 million by 11.9%. The upside reflected improved underwriting results, higher net premiums earned and stronger investment income. Direct premiums written rose 4.1% to $621.3 million.
UNIVERSAL INSURANCE HOLDINGS INC Price, Consensus and EPS Surprise
UVE Premium Growth Extends Across Its Footprint
Direct premiums written in Florida increased 0.8% year over year to $453.2 million. Growth in the company’s largest market remained modest but positive, supported by retention and new business generation.
Expansion outside Florida remained considerably faster. Direct premiums written in other states climbed 14.4% to $168.1 million, reflecting continued growth across Universal Insurance’s multi-state platform. Total policies in force advanced 7.1% to 934,371, while premiums in force increased 4.3% to $2.20 billion.
Universal Delivers Stronger Underwriting Results
The net loss ratio improved 750 basis points year over year to 64.8%, reflecting better current accident-year results. Management attributed the favorable claims and litigation trends to Florida’s legislative reforms and said its litigation inventory had returned to levels seen before the state’s litigation crisis.
Net expense ratio deteriorated 130 basis points to 26.8%. Higher policy acquisition costs associated with growth outside Florida drove the increase, partly offset by a lower ceded premium ratio. The lower losses more than absorbed that pressure, improving the net combined ratio by 620 basis points to 91.6%.
UVE Revenue Mix Benefits From Higher Earned Premiums
Net premiums earned rose 4.7% to $377.3 million, helped by higher direct premiums earned and a lower ceded premium ratio. Direct premiums earned increased 4.1% to $544.8 million, reflecting premium growth generated over the past 12 months.
The ceded premium ratio declined to 30.8% from 31.2% a year earlier, primarily due to the new reinsurance program that took effect on June 1, 2026. Core revenues, which exclude realized and unrealized investment movements, increased 4.6% to $419.4 million.
Universal Gains From Stronger Investment Income
Net investment income rose to $20.2 million from $17.3 million in the prior-year quarter. Higher fixed-income reinvestment yields and a larger invested-asset base supported the increase.
Commissions, policy fees and other revenues moved in the opposite direction, declining 6.7% to $21.9 million. The decrease primarily reflected commissions earned on reinstatements in the year-ago period. Total invested assets were $1.63 billion at quarter end, up from $1.53 billion at the end of 2025.
UVE Expands Profitability as Loss Costs Fall
Adjusted net income available to common stockholders increased 49.7% year over year to $53.4 million. The improvement was primarily driven by the lower net loss ratio, higher net premiums earned and stronger net investment income.
Adjusted operating income advanced 51.6% to $74 million. Adjusted operating income margin expanded 540 basis points to 17.6%, demonstrating the earnings leverage generated by better underwriting performance. On a GAAP basis, operating income surged 70% to $81.6 million, while operating margin improved to 19.1% from 12%.
Universal Strengthened Book Value and Returned Capital
Book value per share increased 39.7% year over year to $22.89. Adjusted book value per share rose 35.4% to $24.17, while annualized adjusted return on common equity improved 3.8 percentage points to 33.2%.
UVE repurchased about $4.5 million worth of shares during the quarter. About $8.6 million remained under the current repurchase authorization. The board also declared a quarterly cash dividend of 16 cents per share, to be paid out on Aug. 7, 2026, to shareholders of record as of July 31.
Zacks Rank
UVE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Progressive Corporation’s PGR second-quarter 2026 earnings per share of $4.85 beat the Zacks Consensus Estimate by 3.2%. The bottom line, however, decreased 6.1% year over year. Net premiums written were $21.1 billion in the quarter, up 5% from $20.1 billion a year ago.
Net premiums earned grew 6% to $21.6 billion. The reported figure met the Zacks Consensus Estimate. Net realized gains on securities were $604 million, up 56% year over year. Combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 110 basis points from the prior-year quarter’s level to 87.1.
The Travelers Companies, Inc. TRV reported second-quarter 2026 core income of $10.04 per share, which beat the Zacks Consensus Estimate of $5.21 by 92.7%. The bottom line climbed 54% year over year. Revenues of $12.09 billion missed the Zacks Consensus Estimate of $12.27 billion by 1.5%.
Net investment income rose 14% year over year to $1.07 billion pre-tax ($883 million after tax). The combined ratio improved 670 basis points year over year to 83.6%, reflecting lower catastrophe losses, stronger reserve development and a better underlying combined ratio.
W.R. Berkley Corporation WRB reported second-quarter 2026 operating income of $1.27 per share, which beat the Zacks Consensus Estimate by 16.5%. The bottom line increased 21% year over year. Operating revenues totaled $3.8 billion, up 3.6% year over year. The top line surpassed the consensus estimate by 1.87%.
W.R. Berkley’s net premiums written were about $3.4 billion, up 2.4% year over year. The consolidated combined ratio (a measure of underwriting profitability) improved 160 basis points year over year to 90, missing the Zacks Consensus Estimate of 92.
7 Best Stocks for the Next 30 Days
Just 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 +23.9% 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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UVE Q2 Earnings Beat Estimates on Lower Losses and Premium Growth

First American Financial Corporation FAF reported second-quarter 2026 operating earnings of $2.08 per share, which beat the Zacks Consensus Estimate by 15.6% and rose 35.9% year over year.
Operating revenues climbed 15% to $2.1 billion, driven by growth in direct premiums, escrow fees, and Information and other revenues. The top line surpassed the consensus estimate by 4.4%.
The quarterly results benefited from robust commercial title business, higher average revenue per order, solid investment income growth and continued strength in information and subservicing businesses. Elevated operating expenses partly offset these gains.
First American Financial Corporation Price, Consensus and EPS Surprise
What’s Behind the Headlines for FAF?
Direct premiums and escrow fees reached $794.1 million, marking a 14.8% increase from the prior-year level. The figure exceeded the Zacks Consensus Estimate and our model estimate by 2.3%.
Investment income totaled $183.7 million in the second quarter, up 14.7% year over year, supported by higher interest income from the investment portfolio. The title segment increased 12% in investment income, partially offset by losses at the corporate level. The figure was above our estimate and the Zacks Consensus Estimate of $182.3 million.
Expenses increased 11.4% to $1.83 billion, primarily due to higher personnel costs, production expenses, premiums retained by agents and a rise in interest expense. The figure was above our estimate of $1.80 billion.
FAF’s Segmental Results
Title Insurance and Services: Total revenues rose 16.9% year over year to $2 billion, which beat the Zacks Consensus Estimate by 6.2%. This was driven by 15% growth in direct premiums and escrow fees, agent premiums and steady net investment income. Investment income increased 11% to $164 million, supported by higher interest income from the company's investment portfolio.
Adjusted pretax margin expanded 310 bps to 15.7%. Title open orders increased 0.7% to 188,200, while closed orders declined 0.7% to 137,300. Average revenue per direct title order increased to $4,572, reflecting a 31% increase in commercial average revenue per order, partially offset by a mix shift toward lower-premium refinance transactions.
Home Warranty: Total revenues rose 3.3% to $113.8 million, exceeding our model estimate of $111 million. Pretax income climbed 8.5% year over year to $24.2 million. The claim loss rate improved to 40%, due to lower claim frequency, partly offset by higher claim severity. Pretax margin expanded 110 basis points to 21.3%.
Corporate: The Corporate segment reported a net pretax loss of $56.2 million, narrowing from a $43.8 million loss in the year-ago quarter.
FAF’s Financial Update
First American exited the second quarter of 2026 with cash and cash equivalents of $2.6 billion, up 89.6% from the 2025-end level.
Notes and contracts payable were $1.5 billion, remaining flat from the 2025-end level.
Stockholders’ equity was $5.6 billion at the end of the second quarter of 2026, up 2.2% from the 2025-end level. The debt-to-capital ratio was 31.4.
Capital Deployment
The board of directors paid a dividend of 55 per cent per share in the second quarter. FAF repurchased 0.3 million shares for $20 million in the reported quarter at an average price of $61.99 per share.
Zacks Rank
FAF currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Progressive Corporation’s PGR second-quarter 2026 earnings per share of $4.85 beat the Zacks Consensus Estimate by 3.2%. The bottom line, however, decreased 6.1% year over year. Net premiums written were $21.1 billion in the quarter, up 5% from $20.1 billion a year ago.
Net premiums earned grew 6% to $21.6 billion, in line with the Zacks Consensus Estimate. Net realized gains on securities were $604 million, up 56% year over year. The combined ratio, the percentage of premiums paid out as claims and expenses, deteriorated 110 basis points from the prior-year quarter’s level to 87.1.
The Travelers Companies, Inc. TRV reported second-quarter 2026 core income of $10.04 per share, which beat the Zacks Consensus Estimate of $5.21 by 92.7%. The bottom line climbed 54% year over year. Revenues of $12.09 billion missed the Zacks Consensus Estimate of $12.27 billion by 1.5%.
Net investment income rose 14% year over year to $1.07 billion pre-tax ($883 million after tax). The combined ratio improved 670 basis points year over year to 83.6%, reflecting lower catastrophe losses, stronger reserve development and a better underlying combined ratio.
W.R. Berkley Corporation WRB reported second-quarter 2026 operating income of $1.27 per share, which beat the Zacks Consensus Estimate by 16.5%. The bottom line increased 21% year over year. W.R. Berkley’s net premiums written were about $3.4 billion, up 2.4% year over year. The figure surpassed our estimate of $3.4 billion.
Operating revenues totalled $ 3.8 billion, up 3.6% year over year. The top line surpassed the consensus estimate by 1.87%. Net investment income grew 10.4% to $418.7 million, supported by higher invested assets and higher portfolio yields. The figure topped our estimate of $407 million. The Zacks Consensus Estimate was $395.6 million.
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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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

FAF Q2 Earnings Top Estimates on Title Strength, Investment Income

Globe Life Inc. GL reported second-quarter 2026 net operating income of $3.61 per share, which missed the Zacks Consensus Estimate of $3.67 by 1.6%. The bottom line, however, improved 10% year over year, driven by higher insurance underwriting income.
The quarter benefited from higher premium revenues, stronger insurance underwriting income, and increased investment income. Higher premium revenues reflected continued strength across the company’s life and health insurance businesses.
Globe Life Inc. Price, Consensus and EPS Surprise
GL Benefits From Premium Growth Across Insurance Business
Total premium revenues increased 7% year over year to $1.30 billion. Life insurance premiums rose 3% to $860.8 million, while health insurance premiums climbed 16% to $436.9 million, supported by strong growth at United American and Family Heritage.
Operating revenues increased 8% year over year to $1.60 billion, driven by higher premium income, stronger net investment income and realized investment gains. The top line surpassed the Zacks Consensus Estimate by 0.6%.
Globe Life Posts Higher Underwriting and Investment Income
Insurance underwriting income increased 5% year over year to $370.3 million. Life underwriting income rose 6% to $359.4 million, while health underwriting income edged up 1% to $99.3 million.
Net investment income rose 4% year over year to $293.8 million. Excess investment income, a key profitability measure, rose 10% to $38.3 million as higher investment income more than offset increased required interest on policy liabilities.
Administrative expenses were up 6.2% year over year to $91.4 million.
Total benefits and expenses increased 6.5% year over year to $1.2 billion, primarily due to higher total policyholder benefits, amortization of deferred acquisition costs, commissions, premium taxes and non-deferred acquisition costs, interest expense and other operating expense.
GL's Distribution Channels Deliver Mixed Results
Life insurance premium growth was led by the American Income division, where premiums increased 5% year over year to $466.3 million. Liberty National premiums rose 3%, while Direct to Consumer premiums slipped 1%. Overall life net sales declined 3% to $149.6 million as weaker Direct to Consumer sales more than offset Liberty National's gains.
Health insurance continued to outperform. United American health premiums surged 29% year over year to $211.4 million, while Family Heritage premiums increased 9%. Total health net sales improved 2% to $70.4 million, supported by double-digit growth at United American despite softer performance at Liberty National and American Income.
Globe Life Strengthens Capital Position
Book value per share increased 18% year over year to $78.18. Excluding accumulated other comprehensive income (AOCI), book value per share rose 11% to $100.04.
Net income return on equity was 18.4% for the first six months of 2026, down 40 basis points year over year. Net operating income return on equity, excluding AOCI, was 14.3%, down 10 basis points year over year.
During the reported quarter, Globe Life repurchased 1.1 million shares for $175 million at an average price of $154.28 per share, continuing its shareholder return strategy.
GL Raises 2026 Earnings Outlook
Globe Life raised its full-year 2026 net operating income guidance to a range of $15.55-$15.95 per share, suggesting a 10-cent increase at the midpoint from its prior outlook.
Zacks Rank
Globe Life currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Progressive Corporation’s PGR second-quarter 2026 earnings per share of $4.85 beat the Zacks Consensus Estimate by 3.2%. The bottom line, however, decreased 6.1% year over year. Net premiums written were $21.1 billion in the quarter, up 5% from $20.1 billion a year ago.
Net premiums earned grew 6% to $21.6 billion. The reported figure met the Zacks Consensus Estimate. Net realized gains on securities were $604 million, up 56% year over year. Combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 110 basis points from the prior-year quarter’s level to 87.1.
The Travelers Companies, Inc. TRV reported second-quarter 2026 core income of $10.04 per share, which beat the Zacks Consensus Estimate of $5.21 by 92.7%. The bottom line climbed 54% year over year. Revenues of $12.09 billion missed the Zacks Consensus Estimate of $12.27 billion by 1.5%.
Net investment income rose 14% year over year to $1.07 billion pre-tax ($883 million after tax). The combined ratio improved 670 basis points year over year to 83.6%, reflecting lower catastrophe losses, stronger reserve development and a better underlying combined ratio.
W.R. Berkley Corporation WRB reported second-quarter 2026 operating income of $1.27 per share, which beat the Zacks Consensus Estimate by 16.5%. The bottom line increased 21% year over year. W.R. Berkley’s net premiums written were about $3.4 billion, up 2.4% year over year. The figure surpassed our estimate of $3.4 billion.
Operating revenues totalled $ 3.8 billion, up 3.6% year over year. The top line surpassed the consensus estimate by 1.87%. Net investment income grew 10.4% to $418.7 million, supported by higher invested assets and higher portfolio yields. The figure topped our estimate of $407 million. The consensus estimate was $395.6 million.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.