The Travelers Companies, Inc., through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United States and internationally. The company operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance. The Business Insurance segment offers workers' compensation, commercial automobile and property, general liability, commercial multi-peril, employers' liability, public and product liability, professional indemnity, marine, aviation, onshore and offshore energy, construction, terrorism, personal accident, and kidnap and ransom insurance products. This segment operates through select accounts, which serve small businesses; commercial accounts that serve mid-sized businesses; national accounts, which serve large companies; and national property and other that serve large and mid-sized customers, commercial trucking industry, and agricultural businesses, as well as markets and distributes its products through brokers, wholesale agents, and program managers. The Bond & Specialty Insurance segment provides surety, fidelity, management and professional liability, and other property and casualty coverages and related risk management services through independent agencies and brokers. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners' insurance to individuals through independent agencies and brokers. The Travelers Companies, Inc. was founded in 1853 and is based in New York, New York.

TRV looks like a high-quality insurer with strong profitability, but the market has already priced that in to a significant extent. The picture across valuation multiples is mixed: P/E, P/S, and P/FCF are below the industry medians, which supports the idea of moderate undervaluation; however, P/B is nearly 82% above the median, and for an insurance company this is especially important because capital-based valuation is often the key metric. P/B has been declining from higher levels in recent periods, but it still remains elevated, so the overvaluation on a book-value basis has not disappeared. Profitability looks very strong: ROE, ROA, ROI, and return on tangible equity are significantly above the industry and are generally improving year by year, which is the main fundamental positive. Margins are also rising, while net and operating profitability remain at a high level, confirming the business’s resilience and the good quality of underwriting results. At the same time, EPS and net income are strong, but the forward EPS is below the current TTM figure, suggesting more restrained market expectations for the next period. Leverage is moderate: debt/equity is below the industry and looks comfortable, but current and quick liquidity are very weak, which is not as critical for an insurance model as it would be for an industrial company, though it still limits valuation upside. Dividend yield in the latest TTM is effectively absent, and the history shows only small values, so the dividend factor does not currently support a re-rating. Revenue, assets, equity, and earnings are generally at a high absolute level and show no signs of structural deterioration, although cash on hand remains relatively modest. Overall, the fundamentals point to a strong but already somewhat expensive business: quality and profitability deserve a premium, but the premium in P/B and weak liquidity do not justify an aggressive increase in the target. For an investor, this means fair value should be close to the current level with a slight conservative bias to the downside, and the main driver of further upside is the maintenance of high return on capital without any deterioration in the insurance cycle.

The Travelers Companies, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, незначительно упал. Рынок на стороне быков.

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

Средний индекс, незначительно упал. Приток средств в лонги снизился, но остается положительным.

Medium index, slightly down. The inflow of funds into longs has decreased, but remains positive.

Strong profitability and moderate debt support TRV, but a high P/B valuation and weak liquidity limit the upside.

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

We are in the first half of the second-quarter 2026 earnings season, which appears robust so far, reaffirming the fundamental strength of the U.S. economy. Up to July 24, 135 S&P 500 companies reported their quarterly financial numbers.
Total earnings for these companies are up 67.8% from the same period last year on 12.6% revenue gains, with 87.4% of the companies beating EPS estimates and 79.3% of them beating revenue estimates.
At present, the Zacks Consensus Estimate shows that total S&P 500 earnings for this reporting cycle are expected to increase by 39.1% compared to the same period last year on 12.3% higher revenues.
Aside from the S&P 500 stable, several companies of the 30-stock Dow portfolio (popularly known as blue-chip stocks) have also come out with their quarterly earnings results. Here, we recommend three such stocks with a favorable Zacks Rank for investment that have reported solid earnings results.
These are: 3M Co. MMM, The Travelers Companies Inc. TRV and UnitedHealth Group Inc. UNH. Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our three picks in the past three months.
Image Source: Zacks Investment Research
3M Co.
Zacks Rank #2 3M is poised to benefit from solid momentum in the Safety and Industrial unit, driven by strength in the industrial adhesives and tapes, abrasives and electrical markets. Strength in MMM’s semiconductor, aerospace and defense markets is aiding the Transportation and Electronics unit.
Solid operational execution, restructuring savings and spending discipline are supporting 3M’s margin performance. Synergies from acquisitions made by the company also bolster MMM’s growth. Its measures to reward shareholders through dividends are encouraging.
MMM has strengthened and expanded the geographical footprint of its businesses through acquisitions while unlocking cash by disposing of underperforming or non-core assets. In July 2026, MMM completed the acquisition of Madison Fire & Rescue in partnership with Bain Capital. The transaction is expected to strengthen MMM’s safety portfolio.
For 2026, MMM expects adjusted earnings to be in the range of $8.80-$8.95 per share compared with $8.50-$8.70 projected earlier. The midpoint of the guided range is about $8.88, which reflects an increase from earnings of $8.06 per share reported in 2025. Adjusted total revenue growth is projected to be above 4.5%.
Solid Estimate Revisions
3M has an expected revenue and earnings growth rate of 4% and 9.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.9% over the last seven days.
MMM has an expected revenue and earnings growth rate of 3.5% and 8%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 1.2% over the last seven days.
The Travelers Companies Inc.
Zacks Rank #2 The Travelers combines broad commercial and personal insurance franchises with disciplined underwriting, rising investment income and sustained capital returns.
Second-quarter results reinforced the durability of TRV’s earnings base, as underlying margins remained attractive, catastrophe losses declined and favorable reserve development supported results across all segments. Technology investment, pricing segmentation and a high-quality fixed income portfolio should aid TRV’s long-term returns over time.
Travelers’ growing fixed income portfolio provides an increasingly predictable earnings contribution. After-tax net investment income rose 14% to $883 million in the second quarter, reflecting TRV’s higher portfolio yields, growth in invested assets and better non-fixed income returns. New money yields were about 90 basis points above the portfolio’s embedded yield at quarter-end.
TRV expects its full-year 2026 underwriting expense ratio to be approximately 28.5%. Management also emphasized that strong earnings, cash flow and capital generation continue to support investments in technology, including artificial intelligence, while maintaining significant capital returns to its shareholders.
Solid Estimate Revisions
Travelers has an expected revenue and earnings growth rate of -0.1% and 17.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 5.5% over the last seven days.
TRV has an expected revenue and earnings growth rate of 2.9% and -8.6%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 1.9% over the last seven days.
UnitedHealth Group Inc.
Zacks Rank #1 UnitedHealth has shown steady revenue growth, driven by Optum and UnitedHealthcare. Optum remains a key growth driver through its pharmacy services, technology integration, and government solutions.
UNH’s strong second-quarter results were aided by growth in commercial fee-based membership and the strength witnessed in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weakness in Optum Health, Optum Rx and declining risk-based membership partially offset the positives.
A strong market position and ongoing expansion initiatives, combined with rising healthcare demand, support sustained long-term growth. Commercial membership also grew for UNH, supporting margins despite challenges from government programs.
UNH earlier anticipated revenues for 2026 above $439 billion, which are below the 2025 level due to planned right-sizing across operations. Adjusted EPS is now expected to be in the range of $19.50-$20.00 for 2026, up from the previous guidance of more than $18.25, indicating improving margins. Net margin was expected to be around 3.6% in 2026, up from 2.7% in 2025.
Solid Estimate Revisions
UnitedHealth has an expected revenue and earnings growth rate of -0.3% and 19.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 6.3% over the last 30 days.
UNH has an expected revenue and earnings growth rate of 2.4% and 13.8%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 6.7% over the last 30 days.
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Buy These 3 Blue-Chip Stocks After Strong Q2 2026 Earnings Results

Principal Financial Group, Inc.’s PFG second-quarter 2026 operating earnings of $2.50 per share beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 16% year over year.
Revenues rose 6.4% year over year to $3.99 billion, which missed the consensus mark of $4.09 billion by 2.4%. Strong underwriting, higher net revenues and margin expansion supported earnings.
Principal Financial Group, Inc. Price, Consensus and EPS Surprise
PFG's Costs Rise With Benefit Outlays
Total expenses increased 7.6% year over year to $3.41 billion. Benefits, claims and settlement expenses rose 8.3% to $1.99 billion, while operating expenses increased 8.1% to $1.40 billion.
Non-GAAP operating earnings climbed 12% to $547 million. Excluding significant variances, operating earnings advanced 13% to $528.7 million, reflecting growth across the operating segments. Net income attributable to PFG declined 1% to $403.4 million.
Principal's Retirement Business Gains Ground
Retirement and Income Solutions’ net revenues increased 9% year over year to $779 million. Favorable market performance and business growth supported the increase.
Pre-tax operating earnings rose 11% to $323.3 million, while the operating margin expanded 60 basis points to 41.5%. Transfer deposits increased 30% to $9 billion, and recurring deposits advanced 6% to $13 billion. Participant roll-ins totaled $1.7 billion in the quarter.
PFG's Asset Management Results Stay Mixed
Investment Management’s operating revenues less pass-through expenses increased 1% to $431.6 million. Pre-tax operating earnings edged up 1% to $159.4 million, while the operating margin remained stable at 37.5%.
International Pension delivered stronger growth. Net revenues increased 16% to $184.8 million, and pre-tax operating earnings rose 24% to $97 million. Assets under management reached a record $168.5 billion, up 18%, aided by more favorable encaje returns and foreign-currency tailwinds.
PFG's Benefits Unit Drives Profit Growth
Specialty Benefits’ premiums and fees increased 4% to $873.3 million. Pre-tax operating earnings rose 25% to $158.9 million, driven by premium growth and more favorable underwriting. Specialty Benefits’ loss ratio improved 280 bps to 57.4%. This was driven by improvements across all products.
The unit’s operating margin improved 300 basis points to 18.2%, while the incurred loss ratio declined 280 basis points. Life Insurance revenues fell 6% to $224.1 million, but pre-tax operating earnings increased 26% to $25.2 million on improved mortality experience. Its operating margin expanded 280 basis points to 11.2%.
PFG's AUM Rises Despite Net Outflows
Principal Financial’s assets under management increased 7% year over year to $808 billion. The total was included within assets under administration of $1.89 trillion.
AUM net cash outflows were $11.1 billion compared with $2.6 billion a year earlier. Investment Management recorded $12 billion of net outflows, concentrated in a small number of U.S. active equity strategies. Market performance added $47.5 billion to AUM during the quarter.
Principal Financial's Capital Returns Remain Strong
The company returned $426.7 million to shareholders during the quarter. This included $250.2 million of share repurchases and $176.5 million of dividends.
Principal Financial ended the quarter with $1.6 billion of excess and available capital, an estimated 400% risk-based capital ratio and a 23.6% debt-to-capital ratio. Book value per share, excluding certain fair-value and accumulated other comprehensive income effects, was $58.40.
PFG's SMB Strategy Adds Scale
Principal Financial agreed to acquire Beam Benefits, a provider of dental, vision, life, disability and supplemental health products for small and midsized businesses. Beam serves more than 25,000 employer customers and generated $175 million in premiums during 2025.
The transaction is expected to close in the second half of 2026. Principal Financial maintained its 2026 earnings-per-share and capital targets and expects Specialty Benefits growth to be at or above the high end of its 5-9% target range in 2027. The board also raised the third-quarter dividend by 2 cents to 84 cents per share.
Zacks Rank
Principal Financial currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%.
Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business fell to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter.
Chubb Limited CB reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%. Stronger P&C underwriting, record investment income, and higher life insurance income supported results.
Net premiums earned increased 5.8% to $13.89 billion. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion.
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.
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PFG Q2 Earnings Beat on Solid Underwriting, Revenues Rise Y/Y

Shares of Allstate (ALL) have been strong performers lately, with the stock up 8.5% over the past month. The stock hit a new 52-week high of $260.65 in the previous session. Allstate has gained 24.9% since the start of the year compared to the 6.1% gain for the Zacks Finance sector and the 1.5% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 29, 2026, Allstate reported EPS of $10.65 versus consensus estimate of $7.43.
For the current fiscal year, Allstate is expected to post earnings of $30.51 per share on $71.42 in revenues. This represents a -12.4% change in EPS on a 5.26% change in revenues. For the next fiscal year, the company is expected to earn $26.57 per share on $75.15 in revenues. This represents a year-over-year change of -12.91% and 5.22%, respectively.
Valuation Metrics
Allstate may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Allstate has a Value Score of A. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 8.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.9X. On a trailing cash flow basis, the stock currently trades at 6.8X versus its peer group's average of 10.2X. Additionally, the stock has a PEG ratio of 0.45. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Allstate an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Allstate currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Allstate passes the test. Thus, it seems as though Allstate shares could have potential in the weeks and months to come.
How Does ALL Stack Up to the Competition?
Shares of ALL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is The Travelers Companies, Inc. (TRV). TRV has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of A.
Earnings were strong last quarter. The Travelers Companies, Inc. beat our consensus estimate by 89.08%, and for the current fiscal year, TRV is expected to post earnings of $32.49 per share on revenue of $48.83 billion.
Shares of The Travelers Companies, Inc. have gained 18.3% over the past month, and currently trade at a forward P/E of 11.92X and a P/CF of 6.05X.
The Insurance - Property and Casualty industry may rank in the bottom 60% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for ALL and TRV, even beyond their own solid fundamental situation.
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%.
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The Allstate Corporation (ALL) Soars to 52-Week High, Time to Cash Out?

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.
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KNSL Q2 Earnings Beat on Higher Underwriting & Investment Income

RLI Corp. RLI reported second-quarter 2026 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 16.9%. The bottom line increased 1.2% from the prior-year quarter.
The quarterly results reflect continued premium growth, higher investment income and favorable prior-year reserve development. However, weaker underwriting performance in the casualty segment partly offset these positives.
Operational Performance
Operating revenues for the reported quarter were $463 million, up 4.9% year over year, driven by higher net premiums earned and net investment income. The top line beat the Zacks Consensus Estimate by 1.6%.
RLI Corp. Price, Consensus and EPS Surprise
Gross premiums written (GPW) increased 3.1% year over year to $579.7 million, driven by strong growth in the casualty segment. Our estimate was $592.9 million.
Net investment income increased 16.8% year over year to $46 million. The Zacks Consensus Estimate was $42.7 million, while our estimate for the metric was pegged at $40.7 million. The investment portfolio’s total return was 3.4% in the second quarter.
Total expenses increased 6.4% year over year to $367.9 million, primarily due to higher policy acquisition costs, insurance operating expenses and interest expense on debt. Our estimate was $376.8 million.
Underwriting income fell 3.7% year over year to $59.9 million. Our estimate was $53.1 million. The combined ratio deteriorated 110 basis points year over year to 85.6, reflecting higher catastrophe losses. Our estimate was 87.2.
Segmental Results
Casualty lines’ GPW rose 10.6% year over year to $339 million. The figure was above our estimate of $338.1 million.
The underwriting income decreased significantly to $1.7 million from $8.3 million, down 79% year over year. The combined ratio deteriorated 280 bps year over year to 99.3%. The figure was above our estimate of 98.4%.
Property lines’ GPW fell 5.9% year over year to $199.3 million. The figure was below our estimate of $207.7 million.
The underwriting income increased to $53.5 million, up 8.1%, supported by favorable reserve development. The combined ratio improved 530 bps year over year to 56.8%. Our estimate was 65.2%.
Surety lines’ GPW declined 5.7% year over year to $41.4 million. The figure was below our estimate of $47.1 million.
The underwriting income improved 5.4% year over year to $4.7 million. The combined ratio improved 70 bps year over year to 87.2%. Our estimate was 84.8%.
RLI's Financial Update
RLI exited the second quarter with total investments and cash of $4.9 billion, up 4.5% from 2025-end level.
Book value was $19.09 per share as of June 30, 2026, up 11% from Dec. 31, 2025.
Net cash flow from operations was $145.2 million, down 16.9% year over year.
The statutory surplus increased 5.2% from 2025-end to $1.94 billion as of June 30, 2026.
Return on equity was 24.5%, expanding 480 bps from the year-ago period.
RLI’s Capital Deployment Update
On June 12, 2026, the insurer paid a regular quarterly dividend of 18 cents per share for the second quarter. RLI’s cumulative dividends totaled more than $1.3 billion over the last five years.
On May 14, 2026, the board of directors approved a $250 million share repurchase program. The company repurchased 0.2 million shares for $12 million during the second quarter. As of June 30, 2026, $238 million remained available under the authorization.
RLI’s Zacks Rank
RLI 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 Another Insurer
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%.
Direct premiums and escrow fees reached $794.1 million, marking a 14.8% increase from the prior-year level. Investment income totaled $183.7 million in the second quarter, up 14.7% year over year. The figure exceeded both our estimate and the Zacks Consensus Estimate of $182.3 million.
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.
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RLI Corp. (RLI) : Free Stock Analysis Report
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RLI's Q2 Earnings Beat Estimates on Premium Growth, Investment Income

Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year.
Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%. Results benefited from stronger investment income and improved underwriting, while lower premiums written reflected continued portfolio actions.
Selective Insurance Group, Inc. Price, Consensus and EPS Surprise
SIGI's Underwriting Results Improve
Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion.
Net premiums earned increased 2.3%. Direct new business fell to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter.
The combined ratio improved 220 basis points to 98%. Lower catastrophe and non-catastrophe property losses, along with no prior-year casualty reserve development, supported the improvement. Higher current-year casualty loss costs partly offset these benefits.
SIGI's Investment Income Adds Support
After-tax net investment income increased 18% year over year to $119.2 million. Net investment income per common share rose 20% to $1.98.
The after-tax yield was 4.4% for fixed-income securities and 4.2% for the overall portfolio. Investment income contributed 13.9 percentage points to annualized return on equity, up from 13 points a year ago.
SIGI's Commercial Lines Performance Strengthens
Standard Commercial Lines net premiums written fell 6% year over year to $961.9 million as lower new business weighed on production. Our estimate was $1 billion.
Net premiums earned rose 3% to $962 million, while retention was 81%.
The segment's combined ratio improved 350 basis points to 99.3%. The improvement reflected no prior-year casualty reserve development and lower non-catastrophe property losses, partly offset by higher current-year casualty loss costs.
SIGI's Personal Lines Margin Narrows
Standard Personal Lines net premiums written declined 8% to $101.5 million, while net premiums earned decreased 5% to $97.6 million. Our estimate for net premiums written was $111.4 million. New business fell 36%, renewal pure price increased 8.9% and retention remained at 79%.
The segment's combined ratio deteriorated 390 basis points to 95.5%. Higher non-catastrophe property losses and a higher expense ratio pressured the result, though lower catastrophe losses provided some relief.
SIGI's Excess and Surplus Results Stay Profitable
Excess and Surplus Lines net premiums written decreased 2% year over year to $157.3 million. Our estimate was $174.7 million. Net premiums earned increased 5% to $155.8 million, while average renewal pure price rose 3.4%.
The segment's combined ratio increased 200 basis points to 91.8%. Higher current-year casualty loss costs and non-catastrophe property losses more than offset lower catastrophe losses.
SIGI's Profitability and Capital Improve
After-tax underwriting income was $19.3 million against a loss of $1.9 million a year earlier. Non-GAAP operating income climbed 46% to $117.6 million, while net income available to common stockholders increased 52% to $127.1 million.
Operating return on common equity improved 340 basis points year over year to 13.7%. The company marked its eighth consecutive quarter of double-digit operating returns.
Total expenses increased slightly to $1.22 billion from $1.21 billion, reflecting higher other insurance expenses. Our estimate was $1.24 billion.
SIGI's Balance Sheet Gains Ground
Selective Insurance ended the quarter with total assets of $15.62 billion, up 3% from year-end 2025. Total investments increased 2% to $11.58 billion, while common stockholders' equity rose 2% to $3.46 billion.
Book value per common share was $58.13, up 3% sequentially, while adjusted book value per share increased 3% to $60.56. During the quarter, the company repurchased $32 million of shares at an average price of $84.72.
Selective Insurance Raises Investment Income Outlook
For 2026, Selective Insurance continues to expect a GAAP combined ratio of 96.5-97.5, including 6 points of catastrophe losses. The outlook assumes no prior-year casualty reserve development.
The company raised its after-tax net investment income guidance to $480 million from $465 million. It continues to project an effective tax rate of 21.5% and now expects weighted average diluted shares of 60.2 million.
Zacks Rank
Selective Insurance 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 Property and Casualty Insurers
Chubb Limited CB reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%.
Stronger P&C underwriting, record investment income, and higher life insurance income supported results. Net premiums earned increased 5.8% to $13.89 billion. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion.
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 totaled $ 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.
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SIGI Q2 Earnings Beat on Investment Income, Underwriting Gains

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.
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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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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.
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