Latest news with #EatonandPalisadesFires
Yahoo
30-06-2025
- Business
- Yahoo
4 P&C Insurance Stocks That Have Gained More Than 25% YTD
The Zacks Property and Casualty Insurance industry has performed well so far this year, riding on better pricing, prudent underwriting standards, increased exposure, streamlined operations, a wider global presence and a solid capital position. Increased technology advancements and an improving rate environment have added to the upside. Banking on strong fundamentals and benefiting from a favorable macro backdrop, Heritage Insurance Holdings, Inc. HRTG, Palomar Holdings, Inc. PLMR, Root, Inc. ROOT and HCI Group, Inc. HCI have not only outperformed the industry but also crushed the Zacks S&P 500 composite and the Finance sector. The insurance industry has outperformed the Zacks S&P 500 composite in the year-to-date period. The insurance industry has risen 7.1%, outperforming the Zacks S&P 500 composite's growth of 4.4% in the said time frame. Meanwhile, the Finance sector has rallied 7.8% in the said time frame. Image Source: Zacks Investment Research Global commercial insurance rates decreased 3%, on average, in the first quarter of 2025, which marked the third consecutive quarterly decrease following seven years of rising rates, per the Marsh Global Insurance Market hikes, operational strength, higher retention, strong renewal and the appointment of retail agents should help write higher premiums. Per Deloitte Insights, gross premiums are estimated to exceed $722 billion by insurers are exposed to catastrophe losses and their profitability is vulnerable to the same. According to CoreLogic, the estimate for insurance market losses across residential and commercial exposures for the Eaton and Palisades Fires in Los Angeles is between $35 billion and $45 billion. Per Moody's RMS Event Response, the insured losses for the January 2025 Los Angeles firestorm events are projected between $20 billion and $30 catastrophe losses continue to provide impetus to policy renewal rates. MarketScout's Market Barometer reports a 3% rise in commercial insurance rates and a 4.9% increase in personal lines in the first quarter of 2025. Price hikes, operational strength, higher retention, strong renewal and the appointment of retail agents should help write higher premiums. Per Deloitte Insights, gross premiums are estimated to increase sixfold to $722 billion by insurance industry is rate-sensitive. An improving rate environment is a boon for insurers, especially long-tail insurers. The Fed kept the funds rate at 4.25-4.50% for a fourth consecutive meeting held in June 2025. With a large invested asset base, investment income should remain healthy, even if the Fed cuts rates later this year. Also, the insurance players are investing heavily in technology to improve scale and efficiency. This should help them generate higher margins and improve profitability.A solid capital level supports insurers in pursuing strategic mergers and acquisitions to gain market share, expand in niche areas and diversify operations into new business lines and geography, as well as increase dividends, pay special dividends and buy back shares. According to PWC, the insurance deals market in 2025 is expected to be active considering the current macroeconomic environment. Per a report by Willis Towers Watson's Quarterly Deal Performance Monitor, based on share price performance, companies making M&A deals outperformed the wider market by +1.5 percentage points for acquisitions that are valued more than $100 million completed between January and March 2025. Players in the insurance industry are investing heavily in technology to expedite business operations. Increased use of blockchain, artificial intelligence, advanced analytics, telematics, cloud computing, Chatbot, RoboAdvisory, and insurtech solutions curbs costs and improves basis points, scale and efficiencies. Per the Deloitte FSI Predictions article, insurers are likely to generate around $4.7 billion in annual global premiums from AI-related insurance by 2032, yielding a CAGR of nearly 80%. With the help of the Zacks Stock Screener, we have selected four insurance stocks that have rallied more than 25% year to date. These stocks have delivered earnings surprises in each of the last four reported quarters and witnessed northbound estimate Insurance: HRTG offers personal residential insurance, commercial residential insurance for properties and personal residential and wind-only property insurance, licensed in the state of Pennsylvania. Its growing commercial residential business, expanding the excess and supply (E&S) business and improving pricing are expected to deliver better margins and boost earnings. Rate adequacy, selective profit-oriented underwriting criteria and restricting new business in over-concentrated markets or products should drive profitability for Heritage Insurance. The E&S business is another growth lever for Heritage. HRTG stated that it will consider and evaluate growth opportunities in a greater number of states. The Zacks Consensus Estimate for HRTG's 2025 and 2026 revenues suggests 4.6% and 7.3% year-over-year growth, respectively, while the estimate for HRTG's 2025 and 2026 earnings suggests 61.6% and 13.2% year-over-year growth, respectively. The consensus estimate for 2025 and 2026 has moved up 33.7% and 17.5%, respectively, in the past 60 days. Earnings have grown 17.6% in the past five years. The company delivered an earnings surprise of 363.17%, on average, in the trailing four quarters. Heritage Insurance currently flaunts a Zacks Rank #1 (Strong Buy) and has a Value Score of B. Shares of HRTG have rallied 93.6% in the year-to-date period. You can see the complete list of today's Zacks #1 Rank stocks Holdings: Palomar is a rapidly growing and profitable company focused on the provision of catastrophe insurance for personal and commercial property. Focus on new business, strong premium retention rates for existing business and renewal of existing policies, strategic expansion of geographic and distribution footprint and new partnerships, combined with better pricing, positions it well for growth. PLMR should benefit from its solid product portfolio as well as geographic expansion and rate increases. PLMR's net investment income is expected to grow on the back of a higher average balance of investments. Higher return on capital indicates efficient utilization of shareholders' value. Palomar raised adjusted net income guidance to a range of $186 million to $200 million in 2025. The Zacks Consensus Estimate for PLMR's 2025 and 2026 revenues suggests 42.5% and 26.3% year-over-year growth, respectively, while the estimate for 2025 and 2026 earnings suggests 39.2% and 17% year-over-year growth, respectively. It has a Growth Score of B. The consensus estimate for 2025 and 2026 has moved up 2% and 1.5%, respectively, in the past 30 days. The company delivered an earnings surprise of 16.42%, on average, in the trailing four quarters. PLMR sports a Zacks Rank #1, and its shares have rallied 45.3% year to It provides insurance products and services in the United States. ROOT offers automobile, homeowners and renters' insurance products. ROOT operates a direct-to-consumer mode and serves customers primarily through mobile applications, as well as through its website. ROOT's direct distribution channels also cover digital, media and referral channels, as well as distribution partners and Zacks Consensus Estimate for Root's 2025 and 2026 revenues suggests 17.3% and 8.6% year-over-year growth, respectively, while the estimate for Root's 2026 earnings suggests 54% year-over-year growth. It delivered a four-quarter average earnings surprise of 208.89%. The consensus estimate for 2025 and 2026 has moved up 516% and 94.3%, respectively, in the past 60 sports a Zacks Rank #1, and its shares have rallied 76.7% year to Group: It is a holding company that conducts its business activities through its subsidiaries. HCI is engaged in diverse business activities, including property and casualty insurance, information technology, real estate and reinsurance. HCI provides property and casualty insurance. HCI's insurance product includes property and casualty homeowners' insurance, condominium-owners' insurance and tenants' insurance for individuals owning Zacks Consensus Estimate for HCI's 2025 and 2026 revenues suggests 18.3% and 5.9% year-over-year growth, respectively, while the estimate for HCI's 2025 earnings suggests 109.7% year-over-year growth. The consensus estimate for 2025 and 2026 has moved up 3.7% and 13%, respectively, in the past 60 days. It delivered a four-quarter average earnings surprise of 42.13%. Earnings have grown 19% in the past five years. The stock currently has a Value Score of A and an impressive VGM Score of carries a Zacks Rank #2 (Buy) at present, and its shares have rallied 29.7% year to date. 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 HCI Group, Inc. (HCI) : Free Stock Analysis Report Heritage Insurance Holdings, Inc. (HRTG) : Free Stock Analysis Report Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report Root, Inc. (ROOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
03-06-2025
- Business
- Yahoo
4 Insurance Stocks That Have Outperformed the S&P 500 in a Year
Better pricing, prudent underwriting and exposure growth have helped the insurance industry perform well. Redesigning and repricing of products and services to maintain sales and profitability, increased automation, prudent underwriting standards, and an improving rate environment are expected to drive premium growth and boost the industry's efficiency. The insurance industry has outperformed the Zacks S&P 500 composite and the Finance sector in the past year. The insurance industry has rallied 21.9% in the past year compared with the Zacks S&P 500 composite's return of 11.9% and the Finance sector's growth of 18%.Here are four insurance stocks that have performed well over the past year, riding on strong fundamentals. HCI Group, Inc. HCI, Heritage Insurance Holdings, Inc. HRTG, Horace Mann Educators Corporation HMN and The Travelers Companies, Inc. TRV have outperformed the industry, the sector and the S&P 500 composite in the past year. These stocks are poised to maintain the rally, given their solid prospects. Image Source: Zacks Investment Research Non-life insurers are exposed to catastrophe losses and their profitability is vulnerable to the same. According to CoreLogic, the estimate for insurance market losses across residential and commercial exposures for the Eaton and Palisades Fires in Los Angeles is between $35 billion and $45 billion. Per Moody's RMS Event Response, the insured losses for the January 2025 Los Angeles firestorm events are projected between $20 billion and $30 catastrophe losses continue to provide impetus to policy renewal rates. MarketScout's Market Barometer reports a 3% rise in commercial insurance rates and a 4.9% increase in personal lines in the first quarter of 2025. Price hikes, operational strength, higher retention, strong renewal and the appointment of retail agents should help write higher premiums. Per Deloitte Insights, gross premiums are estimated to increase sixfold to $722 billion by insurers benefit from a diversified portfolio that lowers concentration risk. While higher demand for protection products benefits sales and premiums of life insurance operations, better pricing and increased exposure to intangibles and cyber threats support premium growth of non-life insurance operations. Per the 2024 global insurance outlook published in Financial Services, U.S. demand for catastrophe reinsurance is expected to grow, putting upward pressure on prices. The insurance industry is rate-sensitive. An improving rate environment is a boon for insurers, especially long-tail insurers. The Fed kept the funds rate at 4.25-4.50% for a third consecutive meeting held in May 2025. With a large invested asset base, investment income should remain healthy, even if the Fed cuts rates later this year. Also, the insurance players are investing heavily in technology to improve scale and efficiency. This should help them generate higher margins and improve industry is also witnessing accelerated digitalization to improve scale and efficiency. While a solid policyholders' surplus helps the industry absorb losses, a sturdy capital level supports inorganic expansion, investment in growth initiatives and distribution of wealth to shareholders. With the help of the Zacks Stock Screener, we have selected three insurance stocks with an impressive Value Score of A or B. The stocks mentioned below either carry a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) at present. Back-tested results have shown that for stocks with a solid Value Score and a favorable Zacks Rank, the returns are even better. HCI Group: It is a holding company that conducts its business activities through its subsidiaries. HCI is engaged in diverse business activities, including property and casualty insurance, information technology, real estate and reinsurance. HCI provides property and casualty insurance. HCI's insurance product includes property and casualty homeowners' insurance, condominium-owners' insurance and tenants' insurance for individuals owning property. You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for HCI Group's 2025 earnings per share indicates a year-over-year increase of 109.7%. The consensus estimate for revenues is pegged at $887.81 million, implying a year-over-year improvement of 18.3%. The consensus estimate for 2026 revenues indicates an increase of 5.9% from the 2025 estimates. HCI has an impressive Growth Score of of the three analysts covering the stock have raised estimates for 2025, and each of two has raised the same for 2026 over the past 30 days. The consensus estimate for 2025 and 2026 has moved 3.8% and 13% north, respectively, in the past 30 days. The company's earnings have improved 19% in the past five years. HCI Group delivered a four-quarter average earnings surprise of 42.13%. The insurer has an impressive Value Score of A, as well as a favorable VGM Score of A. HCI shares have rallied 77% in the past year. The company's return on equity in the trailing 12 months was 27.6%, better than the industry average of 9.3%.Heritage Insurance: It provides personal and commercial residential insurance products. HRTG offers personal residential insurance, commercial residential insurance for properties and personal residential and wind-only property insurance, licensed in the state of Pennsylvania. Its growing commercial residential business, expanding E&S business and improving pricing are expected to deliver better margins and boost earnings. Rate adequacy, selective profit-oriented underwriting criteria and restricting new business in over-concentrated markets or products should drive profitability for Heritage Insurance. The excess and supply (E&S) business is another growth lever for Heritage. HRTG stated that it will consider and evaluate growth opportunities in a greater number of states. Its reinsurance program shields Heritage Insurance from exposure to hurricanes and other severe weather events in the coastal area. The Zacks Consensus Estimate for Heritage Insurance's 2025 earnings per share indicates a year-over-year increase of 61.6%. The consensus estimate for revenues is pegged at $854.90 million, implying a year-over-year improvement of 4.6%. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 13.2% and 7.3%, respectively, from the 2025 of the two analysts covering the stock has raised estimates for 2025 and 2026 over the past 30 days. The consensus estimate for 2025 and 2026 has moved 33.7% and 17.5% north, respectively, in the past 30 days. The company's earnings have improved 17.6% in the past five years. Heritage Insurance delivered a four-quarter average earnings surprise of 363.17%. The insurer has an impressive Value Score of B. HRTG shares have rallied 209.1% in the past year. The company's return on equity in the trailing 12 months was 26.95%, better than the industry average of 9.36%.Horace Mann Educators: It is the largest financial services company serving the U.S. educator market. Niche focus, improving product offerings, better pricing and a strengthened distribution model are likely to benefit first-quarter results. Earned premium growth ahead of loss cost growth is likely to have favored the combined ratio. Continued share buybacks are expected to have boosted the bottom Zacks Consensus Estimate for Horace Mann Educators' 2025 earnings per share indicates a year-over-year increase of 26.1%. The consensus estimate for revenues is pegged at $1.70 billion, implying a year-over-year improvement of 6.6%. The consensus estimate for 2026 earnings per share and revenues indicates increases of 10.3% and 5.7%, respectively, from the 2025 estimates. HMN has an impressive Growth Score of of the two analysts covering the stock has raised estimates for 2025, and one of the two has raised the same for 2026 over the past 30 days. The consensus estimate for 2025 and 2026 has moved 5.5% and 4.7% north, respectively, in the past 30 days. The company's earnings have improved 8.7% in the past five years. Horace Mann Educators has a solid track record of beating earnings estimates in three of the last four quarters and matching in one, the average being 24.09%. The insurer has an impressive Value Score of A, as well as a favorable VGM Score of A. HMN shares have rallied 28.8% in the past year. The company's return on equity in the trailing 12 months was 11.86%, better than the industry average of 9.36%.The Travelers: Travelers Companies is one of the leading writers of auto and homeowners' insurance, plus commercial U.S. property-casualty insurance. High levels of retention, improved pricing, increased new business and a positive renewal premium change, banking on the strength of a compelling product portfolio of coverages across nine lines of business, position it well for growth. Travelers' commercial businesses should continue to perform well on the back of stability in the markets where it operates, as well as the execution of its Zacks Consensus Estimate for Travelers' 2025 revenues is pegged at $49.17 billion, implying a year-over-year improvement of 5.8%.The consensus estimate for 2026 earnings per share and revenues indicates an increase of 30.8% and 6.3%, respectively, from the 2025 estimates. Four of the 14 analysts covering the stock have raised estimates for 2025, and two of the 14 have raised the same for 2026 over the past 30 days. The consensus estimate for 2025 and 2026 has moved 1% and 0.7% north, respectively, in the past 30 days. The company's earnings have improved 17.2% in the past five years. TRV delivered a four-quarter average earnings surprise of 75.37%. The insurer has an impressive Value Score of B, as well as a favorable VGM Score of B. The Travelers shares have rallied 31.3% in the past year. The company's return on equity in the trailing 12 months was 16.1%, better than the industry average of 9.36%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report HCI Group, Inc. (HCI) : Free Stock Analysis Report Horace Mann Educators Corporation (HMN) : Free Stock Analysis Report Heritage Insurance Holdings, Inc. (HRTG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Daily Mail
21-04-2025
- Business
- Daily Mail
Alarm bells ring as wealthy West Coast City risks 'Detroit' fate
A glamorous city known for sprawling mansions, boutique shops and glamor is at risk of becoming 'the next Detroit,' according to experts. Los Angeles is being rocked by an exodus of big budget TV and film production companies — long considered the backbone of the local economy. Detroit was once the center of America's auto production, but fell into decline when factories began to shut, triggering a major housing crisis. Now, some fear LA faces a similar threat. FilmLA reports that on-location production in the city fell by 22.4 percent in the first quarter of 2025 compared to the same time last year. High state taxes are a major factor pushing studios and production companies to shoot elsewhere. Industry leaders are pushing California to extend an entertainment production tax credit to 35 percent of spending in a bid to stem the flood of projects leaving town, reported. The issue came to a head at a city town hall on Monday, where advocates pushed for broader eligibility and increased incentives. 'This is not hyperbole to say that if we don't act, the California film and TV industry will become the next Detroit auto,' producer Noelle Stehman told the event according to The Hollywood Reporter. Detroit was once a thriving economy thanks to General Motors, Ford and Chrysler all having their manufacturing headquarters there. However, when the plants moved on in the 1960s, the city was left decimated. The loss of jobs, coupled with the mortgage crisis, drove millions from their homes in the 2000s as their properties were left worthless. Less than two decades ago, one in five houses stood empty in the city, with foreclosures mounting and properties on deserted streets being sold for $1. One of the main issues is Tinsel Town's spiraling housing costs that are pricing out middle class production workers, according to Senator Ben Allen. The median income in the city is $95,625, yet the median home sale price in 2025 is almost 10 times that at $965,300, according to data. 'The studios don't care where they do the work. They'll do it anywhere,' he said at the city town hall. 'They're still producing shows. What a lot of our colleagues simply don't understand is that this is a middle-class problem. 'The studio heads are going to bed in Bel-Air no matter what' he added. Larger and more widely available tax cuts for the entertainment industry have received support from Governor Gavin Newsom (pictured). Newsom promised back in October to increase film incentives from the current cap of $330 million to $750 million. Newsom's proposed SB630 bill will be heard by lawmakers at the end of April. The film and TV exodus is more bad news for Hollywood following 2023's SAG-AFTRA strikes and the devastating wildfires that ripped through the city causing billions of dollars worth of damage earlier this year. 'Loss of filming opportunity in no way compares to the cost of the Eaton and Palisades Fires in terms of loss of life, resident displacement and property damage,' FilmLA VP of Integrated Communications Philip Sokoloski said in a statement. 'The fires sent many productions scrambling to reschedule shoots and displaced hundreds of industry workers from their homes. But their impact on local filming levels appears to have been temporary.' California has already seen the recent loss of a host of glamorous A-listers including Eva Longoria, Richard Gere and Matthew McConaughey. Want more stories like this from the Daily Mail? Hit the follow button above for more of the news you need.
Yahoo
20-03-2025
- Business
- Yahoo
Local business faces insurmountable losses after natural disaster: 'We want to rebuild'
A beloved local honey business was devastated in the Eaton Fire. Bruce Steele of Altadena, California, evacuated his home — also the site of the small business — with his adult daughter in the early hours of Jan. 8 as the wildfire roared toward them. Within an hour, it had all burned, The Guardian reported. For over 40 years, Bruce and his wife Nancy have sold honey as the Chaparral Mountain Honey Co. The fire destroyed 188 hives as well as 30,000 pounds of honey. The bees Bruce tended to pollinated wildflowers in the area along with almond and orange trees. Some of the equipment Bruce used is no longer made, according to the newspaper, and their tanks and jars were wiped out. They are living with friends as they look to the future. "We want to rebuild," Nancy said. "It's our home." The Guardian called the loss "incalculable." This is Bruce's 49th year as a beekeeper. What started with two colonies grew to eight or nine within a year. The Steeles and their wildflower honey were a hit at the annual Natural History Museum of Los Angeles County Bug Fair. Their property was also a nature lover's paradise. In addition to the bees, great horned owls, mountain lions, gray foxes, black bears, red-shouldered hawks, mule deer, and more were plentiful. The burned honey was worth $210,000, and even with insurance and over $45,000 in donations, the Steeles will be well short of the money needed to rebuild. Their goal is to create a fire-resistant, sustainable home "powered by nature." While the historic Eaton and Palisades Fires spread quickly because of extremely dry and windy conditions, wildfires in general are becoming more common, lasting longer, and increasing in intensity because of rising global temperatures caused by humans' burning of dirty fuels for energy. What would you do if natural disasters were threatening your home? Move somewhere else Reinforce my home Nothing This is happening already Click your choice to see results and speak your mind. Building in wildfire-prone areas will always be risky, but architects and contractors can take steps to lower the chances properties will be consumed by flames. Homeowners — including Californians via a grant program — can also retrofit their houses to improve fire resistance, clearing combustible materials from around the structures and replacing attic vents with ember-resistant ones, for example. In Los Angeles, a major utility company is working with technology that can prevent wildfires from igniting, and the state is seeking ways to improve the insurance market. Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.
NBC Sports
13-03-2025
- Sport
- NBC Sports
LPGA's JM Eagle sponsors donating $6.5 million to LA fire relief
The two tournament sponsors for the LPGA's JM Eagle LA Championship presented by Plastpro are donating $6.5 million to Los Angeles wildfire relief organizations. The event will be contested at El Caballero Country Club in Los Angeles, April 17-20. Additionally, the LPGA stated in a news release, 'Those affected by the Eaton and Palisades Fires will receive complimentary grounds tickets (up to four per family) during tournament competition rounds Thursday-Sunday.' All first responders (fire, police and emergency medical technicians) as well as members of the military (active, reserved, retired and veterans) will receive up to four free tickets per family, too. For the second consecutive year, courtesy the title and presenting sponsors, LPGA competitors in the 144-player field will get free accommodations for the week. Hannah Green is the two-time defending champion. JM Eagle previously donated $1.5 million in support of relief efforts and is committed to donate 'another $5 million towards rebuilding communities affected by the fires.' 'The LPGA Tour has a rich history in Los Angeles, and we are committed to giving back to our city in a variety of ways through the JM Eagle LA Championship presented by Plastpro. We want to put on a splendid event showcasing world-class players and inspiring a love for this great game of golf in more communities across generations,' Walter and Shirley Wang, CEOs of JM Eagle and Plastpro, said in the release.
