Root, Inc.

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Madrigal Pharmaceuticals Inc (Symbol: MDGL), where a total volume of 5,059 contracts has been traded thus far today, a contract volume which is representative of approximately 505,900 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 112.6% of MDGL's average daily trading volume over the past month, of 449,485 shares. Particularly high volume was seen for the $320 strike call option expiring January 16, 2026, with 1,601 contracts trading so far today, representing approximately 160,100 underlying shares of MDGL. Below is a chart showing MDGL's trailing twelve month trading history, with the $320 strike highlighted in orange:
Root Inc (Symbol: ROOT) saw options trading volume of 7,430 contracts, representing approximately 743,000 underlying shares or approximately 101.8% of ROOT's average daily trading volume over the past month, of 729,865 shares. Especially high volume was seen for the $110 strike call option expiring September 19, 2025, with 3,287 contracts trading so far today, representing approximately 328,700 underlying shares of ROOT. Below is a chart showing ROOT's trailing twelve month trading history, with the $110 strike highlighted in orange:
And Forward Air Corp (Symbol: FWRD) saw options trading volume of 5,473 contracts, representing approximately 547,300 underlying shares or approximately 90.4% of FWRD's average daily trading volume over the past month, of 605,660 shares. Especially high volume was seen for the $25 strike call option expiring December 17, 2027, with 1,954 contracts trading so far today, representing approximately 195,400 underlying shares of FWRD. Below is a chart showing FWRD's trailing twelve month trading history, with the $25 strike highlighted in orange:
For the various different available expirations for MDGL options, ROOT options, or FWRD options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Thursday Option Activity: MDGL, ROOT, FWRD

Root, Inc. ROOT is expected to register an improvement in its top and bottom lines when it reports second-quarter 2025 results on Aug. 6, after the closing bell.
The Zacks Consensus Estimate for ROOT’s second-quarter revenues is pegged at $337 million, indicating 16.5% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $1.06 per share. The Zacks Consensus Estimate for ROOT’s second-quarter earnings has moved up 141% in the past 30 days. The estimate suggests a year-over-year increase of 303.9%.
What the Zacks Model Unveils for ROOT
Our proven model predicts an earnings beat for Root this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the chances of an earnings beat.
Earnings ESP: Root has an Earnings ESP of +58.29%. This is because the Most Accurate Estimate of $1.57 is pegged higher than the Zacks Consensus Estimate of $1.06. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Root, Inc. Price and EPS Surprise
Zacks Rank: ROOT sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Shape Q2 Results of ROOT
Higher net premiums earned, improved net investment income, increased fee income and other income are expected to have favored the company’s top line in the second quarter.
An increase in policies in force resulting from increased direct performance marketing spend, continued growth in the partnership channel, and higher premiums per policy resulting from rate actions and a shift in customer mix are likely to have aided net premiums earned. The Zacks Consensus Estimate for second-quarter net investment income is pegged at $311 million.
The Zacks Consensus Estimate for second-quarter policies in force is pegged at 0.5 million,
Net investment income is likely to have increased from a higher average cash balance and a larger investment portfolio. The Zacks Consensus Estimate for second-quarter net investment income is pegged at $9 million.
Better pricing and increased exposure, coupled with prudent underwriting, are expected to have improved underwriting profitability, leading to an improvement in the combined ratio.
Higher loss and loss adjustment expenses, sales and marketing, other insurance expense, technology and development, and general and administrative expenses are likely to have increased operating expenses.
Other Stocks to Consider
Assurant AIZ has an Earnings ESP of +2.21% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $4.43, indicating a year-over-year increase of 8.6%.
AIZ’s earnings beat estimates in each of the last four reported quarters.
American International Group AIG has an Earnings ESP of +0.18% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.58, indicating a year-over-year increase of 36.2%.
AIG’s earnings beat estimates in three of the last four reported quarters, while missing in one.
Lemonade LMND has an Earnings ESP of +2.40% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2025 bottom line is pegged at a loss of 81 cents, implying no change year over year.
LMND’s earnings beat estimates in each of the last four reported quarters.
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Can Root Keep the Surprise Streak Alive This Earnings Season?

Heritage Insurance HRTG is expected to witness an improvement in its top line and its bottom line when it reports second-quarter 2025 results on Aug. 5.
The Zacks Consensus Estimate for HRTG’s second-quarter revenues is pegged at $212.7 million, indicating a 4.2% increase from the year-ago reported figure.
The consensus estimate for earnings is pegged at $1.03 per share. The Zacks Consensus Estimate for HRTG’s second-quarter earnings witnessed no movement in the past 30 days. The estimate suggests a year-over-year increase of 68.8%.
HRTG’s Solid Earnings Surprise History
HRTG’s earnings beat the Zacks Consensus Estimates in each of the trailing four quarters, the average surprise being 363.17%.
What the Zacks Model Unveils for HRTG
Our proven model does not conclusively predict an earnings beat for Heritage Insurance this time around. This is because a stock needs to have the 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: HRTG has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.03 per share.
Heritage Insurance Holdings, Inc. Price and EPS Surprise
Zacks Rank: HRTG currently has a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Shape HRTG’s Q2 Results
Heritage Insurance’s second-quarter results are likely to benefit from rate adequacy, managed exposures and enhanced underwriting discipline.
Gross premiums earned are likely to have improved, driven by rate adequacy and organic growth in commercial, residential and surplus lines business.
Premiums-in-force are likely to have improved banking on proactive rate hikes and growth in the E&S business.
Net investment income is likely to have benefited from a high-quality portfolio of short-duration assets. The Zacks Consensus Estimate is pegged at $8.6 million.
Total revenues are likely to have increased, driven by an increase in premiums and net investment income.
The company’s strategic lowering of exposure in over-concentrated and unprofitable areas, while increasing presence in profitable geographies and products, is likely to have driven profitability.
A reinsurance program banking on prudent exposure management initiatives is likely to have aided the company in managing catastrophe losses.
A likely increase in higher policy acquisition costs and general and administrative expenses is expected to have driven net expense ratio. The Zacks Consensus Estimate for the metric is pegged at 35.1.
Combined ratio is likely to have improved, attributed to a lower loss ratio and expense ratio. The Zacks Consensus Estimate is pegged at 84.
Stocks to Consider
Here are three insurance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Root Inc. ROOT has an Earnings ESP of +58.28% and a Zacks Rank #1 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.06, indicating a year-over-year increase of 303.9%
ROOT’s earnings beat estimates in each of the last four reported quarters.
Palomar Holdings PLMR has an Earnings ESP of +0.25% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.68, indicating a year-over-year increase of 34.4%.
PLMR’s earnings beat estimates in each of the last four reported quarters.
Assurant AIZ has an Earnings ESP of +2.21% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $4.43, indicating a year-over-year increase of 8.6%.
AIZ’s earnings beat estimates in each of the last four reported quarters.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Heritage Due to Report Q2 Earnings: Here's What to Expect

Aon plc AON is scheduled to release second-quarter 2025 results on July 25, before the opening bell. The Zacks Consensus Estimate for earnings is pegged at $3.40 per share, which indicates an improvement of 16% from the prior-year quarter’s number. Management expects it to witness 15-18% year-over-year growth in the same time frame.
The second-quarter earnings estimate remained stable over the past 30 days. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $4.1 billion, implying 9.7% growth from the year-ago quarter’s figure.
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AON’s Earnings Surprise History
Aon’s bottom line beat estimates in two of the trailing four quarters and missed the mark twice, the average surprise being 0.99%. This is depicted in the chart below:
Aon plc Price and EPS Surprise
What Our Quantitative Model Unveils for AON
Our proven model predicts an earnings beat for Aon this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
Earnings ESP: Aon has an Earnings ESP of +1.27% because the Most Accurate Estimate of $3.45 per share is pegged higher than the Zacks Consensus Estimate of $3.40. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: AON currently carries a Zacks Rank of 3.
Factors Likely to Shape Aon’s Q2 Results
In the second quarter, Aon's revenues are expected to have gained on strong contributions from Commercial Risk Solutions, Reinsurance Solutions, Health Solutions and Wealth Solutions businesses. Performance of Commercial Risk Solutions is anticipated to have benefited from a strong international property and casualty business, which, in turn, is likely to have been driven by strong retention rates and new business growth.
The Zacks Consensus Estimate for Commercial Risk Solutions’ revenues is pegged at $2.2 billion, indicating 7.5% year-over-year growth. Our estimate for the metric indicates a 6% year-over-year rise in the to-be-reported quarter.
The Reinsurance Solutions unit is expected to have benefited on the back of improved treaty placements and strong growth in facultative placements and insurance-linked securities. The consensus mark for Reinsurance Solutions revenues is $665 million, marking a 4.7% year-over-year increase. Our estimate is $654.1 million.
Additionally, revenues of Health Solutions are likely to have received an impetus in the to-be-reported quarter, attributable to new business growth and strong performance of its core Health and Benefits business. The Zacks Consensus Estimate for Health Solutions revenues is pegged at $750 million, indicating a rise of 13.3% from the prior-year quarter’s reported number. We expect the metric to register a year-over-year rise of 22% in the second quarter.
Improved NFP asset inflows are likely to drive the results of Wealth Solutions. The consensus mark for the unit’s revenues is $550 million, which implies 18.8% growth from the prior-year quarter’s reported figure. Our estimate for the metric stands at $527.8 million.
However, the upside is expected to have been partially offset by an elevated cost level resulting from higher compensation and benefits, and information technology expenses. Our model suggests the two expense components to witness year-over-year increases of 5.9% and 6.1%, respectively. Meanwhile, we expect total operating costs of $3.2 billion in the second quarter, up 4.6% year over year. Management anticipates interest expenses of $209 million in the second quarter.
Other Stocks to Consider
Here are some other companies from the insurance space, which according to our model, have the right combination of elements to beat on earnings this time around:
Root, Inc. ROOT has an Earnings ESP of +58.29% and a Zacks Rank of 1 at present. The Zacks Consensus Estimate for ROOT’s second-quarter earnings is pegged at $1.06 per share. A loss of 52 cents per share was incurred in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Root’s earnings beat estimates in each of the trailing four quarters, the average surprise being 208.89%.
Skyward Specialty Insurance Group, Inc. SKWD currently has an Earnings ESP of +2.51% and a Zacks Rank of 2. The Zacks Consensus Estimate for SKWD’s second-quarter earnings is pegged at 86 cents per share, which implies a 7.5% rise from the year-ago quarter’s figure.
Skyward Specialty’s earnings beat estimates in each of the trailing four quarters, the average surprise being 12.86%.
Primerica, Inc. PRI has an Earnings ESP of +0.12% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for PRI’s second-quarter earnings is pegged at $5.17 per share, which implies a 9.8% rise from the year-ago quarter’s figure.
Primerica’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.83%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Will the Commercial Risk Solutions Unit Aid Aon in Q2 Earnings?

Marsh & McLennan Companies, Inc.’s MMC board of directors recently sanctioned a 10% hike in the quarterly dividend in a bid to boost shareholders’ value. MMC will now pay a dividend of 90 cents per share compared with the prior payout of 81.5 cents.
The increased dividend will be paid out on Aug. 15, 2025, to shareholders of record as of July 24. This marks the 16th consecutive year of dividend growth for the company, reflecting a 16-year CAGR of 9.5%. Based on the stock’s July 9 closing price of $214.17, its dividend yield of 1.5% remains higher than the industry’s figure of 1.1%.
MMC has consistently upheld its dividend growth strategy, having raised its quarterly dividend by 15% in the previous year. This steady progression aligns with management’s long-standing objective to deliver yearly dividend increases. Moreover, the company has been paying regular dividends since 2006.
Impressive Capital Deployment History of Marsh & McLennan
In addition to regular dividend payments, Marsh & McLennan returns capital to shareholders through share repurchases. The company bought back around 4.3 million shares for $900 million in 2024, followed by repurchases of 1.3 million shares for $300 million in the first quarter of 2025. MMC had around $2 billion in funds remaining under its share buyback program as of March 31, 2025.
This year is also expected to be a strong one for Marsh & McLennan with respect to its capital deployment history, as it plans to deploy around $4.5 billion in capital through dividend payments, acquisitions and share repurchases.
Such uninterrupted capital deployment moves highlight a company’s strong financial position. Marsh & McLennan boasts a strong financial position, thanks to its adequate cash reserves and robust free cash flow generation abilities. It had cash and cash equivalents of $1.6 billion as of March 31, 2025. In the trailing 12-month period, free cash flow after dividends improved 5.6% from the prior-year comparable period.
Return on equity, a profitability measure to identify how tactically the company is utilizing its shareholders’ funds, stands at 33.1% for Marsh & McLennan, which remains higher than the industry’s average of 27.6%.
MMC’s Share Price Performance & Zacks Rank
Shares of Marsh & McLennan have gained 1.2% in the past six months against the industry’s decline of 1.4%. MMC currently carries a Zacks Rank #3 (Hold).
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Stocks to Consider
Some better-ranked stocks in the insurance space include Root, Inc. ROOT, MGIC Investment Corporation MTG and Kemper Corporation KMPR. While Root sports a Zacks Rank #1 (Strong Buy), MGIC Investment and Kemper carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Root outpaced estimates in each of the trailing four quarters, the average surprise being 208.89%. The Zacks Consensus Estimate for ROOT’s 2025 earnings is pegged at $1.38 per share. The consensus mark for revenues implies a year-over-year improvement of 16.4%. The consensus mark for Root’s 2025 earnings has moved north by 24.3% in the past seven days.
MGIC Investment’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 15.88%. The Zacks Consensus Estimate for MTG’s 2025 earnings indicates 0.3% year-over-year growth, while the same for revenues implies an improvement of 1.3%. The consensus mark for MGIC Investment’s 2025 earnings has moved north by 0.7% in the past 30 days.
The bottom line of Kemper outpaced estimates in each of the trailing four quarters, the average surprise being 21.11%. The Zacks Consensus Estimate for KMPR’s 2025 earnings implies 7.6% year-over-year growth, while the same for revenues implies an improvement of 7.5%. The consensus mark for Kemper’s 2025 earnings has moved north by 1.1% in the past 60 days.
Shares of Root and MGIC Investment have gained 47.5% and 12.7%, respectively, in the past six months. However, Kemper stock has lost 3.2% in the same time frame.
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Marsh & McLennan Boosts Dividend by 10% to 90 Cents Per Share

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Twilio Inc (Symbol: TWLO), where a total of 13,583 contracts have traded so far, representing approximately 1.4 million underlying shares. That amounts to about 67.1% of TWLO's average daily trading volume over the past month of 2.0 million shares. Especially high volume was seen for the $115 strike call option expiring July 18, 2025, with 5,053 contracts trading so far today, representing approximately 505,300 underlying shares of TWLO. Below is a chart showing TWLO's trailing twelve month trading history, with the $115 strike highlighted in orange:
Root Inc (Symbol: ROOT) options are showing a volume of 2,321 contracts thus far today. That number of contracts represents approximately 232,100 underlying shares, working out to a sizeable 56.3% of ROOT's average daily trading volume over the past month, of 412,460 shares. Particularly high volume was seen for the $165 strike call option expiring July 18, 2025, with 420 contracts trading so far today, representing approximately 42,000 underlying shares of ROOT. Below is a chart showing ROOT's trailing twelve month trading history, with the $165 strike highlighted in orange:
And Gates Industrial Corp PLC (Symbol: GTES) saw options trading volume of 8,029 contracts, representing approximately 802,900 underlying shares or approximately 55.9% of GTES's average daily trading volume over the past month, of 1.4 million shares. Particularly high volume was seen for the $22.50 strike call option expiring August 15, 2025, with 3,018 contracts trading so far today, representing approximately 301,800 underlying shares of GTES. Below is a chart showing GTES's trailing twelve month trading history, with the $22.50 strike highlighted in orange:
For the various different available expirations for TWLO options, ROOT options, or GTES options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Wednesday Option Activity: TWLO, ROOT, GTES

MarketAxess Holdings Inc. MKTX reported first-quarter 2025 earnings per share of $1.87, which outpaced the Zacks Consensus Estimate by 2.8%. However, the bottom line decreased 2.6% year over year from $1.92 per share. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Total revenues declined 0.8% year over year to $208.6 million. The top line also missed the consensus mark by 1%.
The better-than-expected first-quarter earnings benefited from higher trading volumes due to heightened market volatility, partially offset by an elevated expense level and a decline in credit variable commission revenues.
MarketAxess Holdings Inc. Price, Consensus and EPS Surprise
MarketAxess Holdings Inc. price-consensus-eps-surprise-chart | MarketAxess Holdings Inc. Quote
MarketAxess’ Quarterly Operational Update
Commission revenues of $181.3 million declined 2% year over year, which also fell short of the Zacks Consensus Estimate of $185.4 million and our estimate of $188.5 million. The metric was affected by the decline in credit variable transaction fees, partially offset by an increase in commission revenues in Eurobonds, emerging markets and rates product lines.
Information services revenues were $12.9 million, which improved 9% year over year due to net new data contract revenues. However, the figure missed the consensus mark of $13 million.
Post-trade services revenues increased 3% year over year to $11.1 million due to net new contract revenues, partly offset by a decline due to foreign currency fluctuations. However, the metric fell short of the consensus mark by 0.4%.
Total expenses increased 2% year over year to $120.2 million due to higher employee compensation and benefits, technology and communication, and marketing and advertising expenses. However, the metric was lower than our estimate of $128.1 million.
MarketAxess’ operating income of $88.4 million declined 4% year over year but beat our estimate of $87 million. EBITDA fell 1.7% year over year to $107.4 million, while the EBITDA margin deteriorated 40 basis points year over year to 51.5%.
MarketAxess’ Trading Volumes in Detail
The high-grade trading volume of MarketAxess was $461.3 billion in the first quarter, which rose 1% year over year and also surpassed the Zacks Consensus Estimate of $460.7 billion. The ADV of the same product category increased 1% year over year to $7.6 billion, which is higher than the consensus mark by 0.1% and our estimate of $7.5 billion.
High-yield trading volume increased 5% year over year to $90 billion, while ADV also rose 5% year over year to $1.5 billion.
Other credit trading volume of $36.5 billion rose 39% year over year, whereas ADV for the same product category grew 38% year over year to $598 million.
Trading volume and ADV of emerging markets rose 9% each on a year-over-year basis to $240.3 billion and $3.9 billion, respectively. The Eurobonds’ trading volume and ADV improved 15% each on a year-over-year basis.
The total credit trading volume of $976 billion grew 6% year over year. Total credit ADV rose 6% to $15.9 billion but missed the consensus mark of $16 billion and our estimate of $16.2 billion.
Total rates’ trading volume and ADV of this product category soared 53% each on a year-over-year basis.
MarketAxess’ Balance Sheet (As of March 31, 2025)
MarketAxess exited the first quarter with cash and cash equivalents of $486.2 million, which decreased from $544.5 million at 2024-end. Total assets of $1.9 billion increased from $1.8 billion at 2024-end.
The company had no outstanding borrowings under its credit facility at the first-quarter end. Total stockholders’ equity of $1.3 billion declined from $1.4 billion as of Dec. 31, 2024.
MarketAxess’ Cash Flows
MarketAxess generated $29.6 million of net cash from operations in the first quarter, which improved from the prior-year figure of $5 million of net cash used in operations. Free cash flow advanced 52.2% year over year to $47.1 million.
MarketAxess’ Capital Deployment Update
MarketAxess bought back shares worth $38.1 million in the quarter under review, and till April 2025, it bought back a total of shares worth $51.7 million from year-end.
A leftover capacity of $173.4 million remained under the company’s authorized repurchase program as of April 30, 2025.
The company declared a quarterly cash dividend of 76 cents per share, which will be paid out on June 4, 2025, to shareholders of record as of May 21.
MarketAxess’ 2025 Outlook
Services revenues, which comprise Information Services, Post-Trade Services and Technology Services, were earlier anticipated to witness mid-single-digit growth.
Total expenses were earlier estimated between $505 million and $525 million for 2025.
Capital expenditure was earlier projected between $65 million and $70 million, while the effective tax rate is now expected to lie between 26% and 27%.
MKTX’s Zacks Rank & Key Picks
MKTX currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Finance space are Root Inc. ROOT, Atlanticus Holdings Corp ATLC and Heritage Insurance Holdings Inc. HRTG, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Root’s current-year earnings of 18 cents per share has witnessed one upward revision in the past month against none in the opposite direction. Root beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 26.1%. The consensus estimate for current-year revenues is pegged at $1.3 billion, implying 9.2% year-over-year growth.
The Zacks Consensus Estimate for Atlanticus Holdings’ current-year earnings is pegged at $6.17 per share. It has remained stable over the past week. The consensus estimate for Atlanticus Holdings’ current-year revenues is pegged at $1.5 billion, suggesting 10.8% year-over-year growth.
The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $2.43 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in each of the trailing four quarters, with the average surprise being 363.2%. The consensus estimate for current-year revenues is pegged at $870.2 million, calling for 6.5% year-over-year growth.
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MarketAxess Holdings Inc. (MKTX) : Free Stock Analysis Report
Heritage Insurance Holdings, Inc. (HRTG) : Free Stock Analysis Report
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Root, Inc. (ROOT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

MarketAxess Q1 Earnings Beat on Emerging Markets Strength

American International Group, Inc. AIG reported first-quarter 2025 adjusted earnings per share of $1.17, which beat the Zacks Consensus Estimate by 11.4%. However, the bottom line declined from the year-ago quarter’s $1.25. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Adjusted operating revenues amounted to $6.6 billion, which declined significantly year over year. Also, the top line missed the consensus mark by 2.6%.
The better-than-expected first-quarter earnings were supported by new business production and robust retention. Lower premiums and high catastrophe charges due to California wildfires partially offset the positives.
American International Group, Inc. Price, Consensus and EPS Surprise
American International Group, Inc. price-consensus-eps-surprise-chart | American International Group, Inc. Quote
AIG’s Quarterly Operational Update
Premiums of $5.8 billion declined 1.7% year over year in the quarter and also missed the Zacks Consensus Estimate by 1.5%. Total net investment income increased 13% year over year to $1.1 billion, attributable to increased income from the sale of fixed maturity securities, lower investment expenses and dividends received from Corebridge Financial. The metric beat the consensus mark by 18.4%. The company now has a 23% ownership interest in Corebridge.
Total benefits, losses and expenses rose 2.1% year over year to $5.8 billion. The year-over-year increase was due to higher losses and loss adjustment expenses.
Adjusted return on equity of AIG was 6.4%, which was in line with the year-ago quarter.
Segmental Performances of AIG
General Insurance – North America Commercial
The segment recorded net premiums written of $1.2 billion, which rose 14% year over year. The metric benefited from new business production in Lexington Insurance, robust retention, and Glatfelter and Retail Property in the first quarter.
Underwriting income of $129 million declined 45% on a reported basis. The metric was affected by increased catastrophe charges, which jumped to $258 million from $72 million a year ago due to the January California wildfires. The combined ratio of 93.9% deteriorated 580 bps year over year.
General Insurance – International Commercial
The segment recorded net premiums written of $2.0 billion, which rose 5% year over year on a reported basis and 8% on a comparable basis. The metric benefited from robust growth in the first quarter in the Global Specialty and Property business.
Underwriting income of $240 million decreased 27% on a reported basis. Catastrophe-related charges were $70 million in the first quarter. The combined ratio of 88.2% deteriorated 460 bps year over year.
General Insurance – Global Personal
The segment recorded net premiums written of $1.3 billion, which decreased 14% year over year on a reported basis but rose 3% on a comparable basis. The metric benefited from Personal Auto and new production.
Underwriting loss of $126 million was recorded against an income of $30 million in the prior year. Catastrophe-related charges were $197 million in the first quarter. The combined ratio of 107.9% deteriorated 960 bps year over year due to the California wildfires.
Other Operations
Total net investment income rose 51% year over year to $11 million in the first quarter due to a dividend income from Corebridge.
Interest expenses declined 21% year over year due to a debt reduction. Adjusted pre-tax loss narrowed from $205 million to $70 million.
Financial Position of AIG (As of March 31, 2025)
AIG exited the fourth quarter with a cash balance of $1.4 billion, which rose from $1.3 billion at 2024-end. Total assets of $161.9 billion increased from $161.3 billion at 2024-end.
Long-term debt amounted to $8.6 billion, which declined from $8.8 billion at 2024-end.
Total equity of $41.5 billion fell from $42.6 billion at 2024-end. Total debt to total capital was 17.1% at the first-quarter end, up from the 2024-end level of 17%.
Adjusted book value per share declined 6.2% year over year to $74.45.
AIG’s Capital Deployment Update
AIG rewarded its shareholders by repurchasing shares worth $2.2 billion and distributing dividends of $234 million.
Management announced a cash dividend of 45 cents per share for the second quarter, marking a 12.5% increase.
AIG’s Zacks Rank & Key Picks
AIG currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Finance space are Root Inc. ROOT, Kingstone Companies Inc. KINS and Heritage Insurance Holdings Inc. HRTG, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Root’s current-year earnings of 18 cents per share has witnessed one upward revision in the past month against none in the opposite direction. Root beat earnings estimates in each of the trailing four quarters, with the average surprise being 195.3%. The consensus estimate for current-year revenues is pegged at $1.3 billion, implying 9.2% year-over-year growth.
The Zacks Consensus Estimate for Kingstone Companies’ current-year earnings is pegged at $1.90 per share. It has remained stable over the past week. The consensus estimate for Kingstone Companies’ current-year revenues is pegged at $214 million, suggesting 37.9% year-over-year growth.
The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $2.43 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 328.6%. The consensus estimate for current-year revenues is pegged at $870.2 million, calling for 6.5% year-over-year growth.
5 Stocks Set to Double
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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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American International Group, Inc. (AIG) : Free Stock Analysis Report
Heritage Insurance Holdings, Inc. (HRTG) : Free Stock Analysis Report
Kingstone Companies, Inc (KINS) : Free Stock Analysis Report
Root, Inc. (ROOT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AIG Q1 Earnings Top on New Business Despite High Catastrophe Loss

Assurant, Inc. AIZ is expected to register an improvement in its top line but a decline in its bottom line when it reports first-quarter 2025 results on May 6, after the closing bell.
The Zacks Consensus Estimate for AIZ’s first-quarter revenues is pegged at $3.05 billion, indicating 5.6% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $3.00 per share. The Zacks Consensus Estimate for AIZ’s first-quarter earnings has moved up 2.5% in the past 30 days. The estimate suggests a year-over-year decline of 37.2%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
What the Zacks Model Unveils for AIZ
Our proven model predicts an earnings beat for Assurant this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the chances of an earnings beat.
Earnings ESP: Assurant has an Earnings ESP of +1.53%. This is because the Most Accurate Estimate of $3.05 is pegged higher than the Zacks Consensus Estimate of $3.00. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Assurant, Inc. Price and EPS Surprise
Assurant, Inc. price-eps-surprise | Assurant, Inc. Quote
Zacks Rank: AIZ carries a Zacks Rank #3 at present.
Factors Likely to Shape Q1 Results of AIZ
Solid performance at the Global Housing segment, as well as growth in Global Lifestyle, is likely to have aided the first-quarter performance of Assurant.
Revenues are likely to have benefited from improved net earned premiums and higher net investment income.
Net earned premiums are expected to have benefited from higher premiums in the Global Housing and Global Lifestyle segments.
The Zacks Consensus Estimate for first-quarter net earned premiums, fees and other income is pegged at $2.5 billion. We expect net earned premiums to be $2.5 billion in the to-be-reported quarter. We expect fees and other income to increase 2.7% to $396.2 million in the first quarter.
Net investment income is likely to have gained from higher yields and assets in fixed maturity securities and short-term investments. The upside is likely to have been partially offset by lower income in other investments. The Zacks Consensus Estimate for first-quarter net investment income is pegged at $134 million. We expect net investment income to be $133.8 million.
Global Housing is expected to have been driven by Homeowners top-line growth, including an improvement in policies in-force and higher average premiums within lender-placed, as well as growth across various specialty Homeowners products. The Zacks Consensus Estimate for the segment’s first-quarter revenues is pegged at $676 million, suggesting growth of 12.5% from the year-ago quarter’s level. We expect the segment’s revenues to be $655 million.
Global Lifestyle is likely to have benefited from contributions from newly launched trade-in programs and device protection programs. The Zacks Consensus Estimate and our estimate for the segment’s first-quarter revenues are both pegged at $2.3 billion.
Total benefits, losses and expenses might have escalated because of higher underwriting and selling, general and administrative expenses. We expect total expenses to be $2.7 billion.
Continued share buybacks are likely to have aided the bottom line in the to-be-reported quarter.
Other Stocks to Consider
Here are some other finance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:
Root, Inc. ROOT has an Earnings ESP of +25.84% and sports a Zacks Rank of 1 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 45 cents, indicating an increase of 207% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
ROOT’s earnings beat estimates in each of the last four quarters.
Primerica, Inc. PRI has an Earnings ESP of +0.46% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $4.77, indicating an increase of 21.9% from the year-ago reported figure.
PRI’s earnings beat estimates in three of the last four reported quarters and missed in one.
Lemonade, Inc. LMND has an Earnings ESP of +3.40% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2025 loss per share is pegged at 94 cents, indicating a decline of 40.3% from the year-ago reported figure.
LMND’s earnings beat estimates in each of the last four quarters.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
Primerica, Inc. (PRI) : Free Stock Analysis Report
Lemonade, Inc. (LMND) : Free Stock Analysis Report
Root, Inc. (ROOT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Assurant Gears Up to Report Q1 Earnings: Here's What to Expect

Cboe Global Markets, Inc. CBOE is expected to register an improvement in its top and bottom lines when it reports first-quarter 2025 results on May 2, before the opening bell.
The Zacks Consensus Estimate for CBOE’s first-quarter revenues is pegged at $549.80 million, indicating 9.5% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.34 per share. The Zacks Consensus Estimate for CBOE’s first-quarter earnings has moved up 7.8% in the past 30 days. The estimate suggests a year-over-year increase of 8.8%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
What the Zacks Model Unveils for CBOE
Our proven model predicts an earnings beat for Cboe Global this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the chances of an earnings beat.
Earnings ESP: Cboe Global has an Earnings ESP of +0.80%. This is because the Most Accurate Estimate of $2.36 is pegged higher than the Zacks Consensus Estimate of $2.34. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Cboe Global Markets, Inc. Price and EPS Surprise
Cboe Global Markets, Inc. price-eps-surprise | Cboe Global Markets, Inc. Quote
Zacks Rank: CBOE carries a Zacks Rank #2 at present.
Factors Likely to Shape Q1 Results of CBOE
Strong index options growth, higher transaction and clearing fees, access and capacity fees, market data fees and regulatory fees are likely to have aided the first-quarter performance of CBOE.
Solid volumes across Derivatives business, strong volumes across Cash and Spot Markets, growth of Data Vantage business and more disciplined expense management are expected to have favored the company’s top line in the first quarter.
Cboe Data Vantage is likely to have benefited from increases in all three components of Data Vantage business, namely, real-time market data, analytics, and indices.
Healthy trading volumes and growth across all of the regional equities markets are expected to have favored Cash and Spot Markets. Growing customer base, demand for access to the U.S. market, and an increasing demand for options are likely to have benefited the Derivatives business.
Access and capacity fees are likely to have been aided by increased logical and physical port fees in the North American Equities, Options, and Europe and Asia Pacific segments, driven by increased customer demand.
Proprietary market data fees are expected to have been aided by increases in the Options, North American Equities, and Europe and Asia Pacific segments.
The Zacks Consensus Estimate for first-quarter market data fees is pegged at $76 million, indicating growth of 5.5% from the prior-year quarter’s reported figures. The Zacks Consensus Estimate for access and capacity fees is pegged at $97 million, indicating growth of 7.8% from the prior-year quarter’s reported figures. Our estimate for market data revenues is pegged at $78.1 million, while the same for access and capacity fees is pegged at $97.5 million.
Higher multi-listed options transaction fees are likely to have favored Options’ performance in the to-be-reported quarter.
Cboe Global is likely to have benefited from strong proprietary products, VIX futures, VIX and SPX options. Also, the company expects to witness solid growth in multi-listed options trading.
Continued share buybacks are expected to have aided the bottom line in the to-be-reported quarter.
Other Stocks to Consider
Here are some other finance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:
Root, Inc. ROOT has an Earnings ESP of +25.84% and sports a Zacks Rank of 1 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 45 cents, indicating an increase of 207% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
ROOT’s earnings beat estimates in each of the last four quarters.
Assurant, Inc. AIZ has an Earnings ESP of +1.53% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $3, indicating a decrease of 37.2% from the year-ago reported figure.
AIZ’s earnings beat estimates in each of the last four quarters.
Lemonade, Inc. LMND has an Earnings ESP of +3.40% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2025 loss per share is pegged at 94 cents, indicating a decline of 40.3% from the year-ago reported figure.
LMND’s earnings beat estimates in each of the last four quarters.
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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
Assurant, Inc. (AIZ) : Free Stock Analysis Report
Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report
Lemonade, Inc. (LMND) : Free Stock Analysis Report
Root, Inc. (ROOT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.