U.S. insurance companies post highest estimated 2022 price-to-EPS ratios in Q1

According to an analysis by S&P Global Market Intelligence, the median price to multiple of estimated 2022 earnings for the U.S. property, casualty and multiline industry was 13.5x as of March 31.

Kinsale leads the way in P&C

Kinsale Capital Group Inc. ended the first quarter as the highest valued property and casualty insurance company on a major US stock exchange. The carrier’s price to estimated revenue for 2022 was 35.3x as of March 31, compared to 39.2x at the end of 2021.

Kinsale’s share price fell about 4% in the first quarter, ending the period at $228.02, from $237.89 as of December 31, 2021. However, the company made a total return year over 38.7% until the end of the first quarter. .

In terms of earnings expectations for this year, Palomar Holdings Inc. is expected to see EPS jump over 50% in 2022. Sell-side analysts expect the company to produce EPS of $2.93 in 2022, up from 1 $.95 the previous year.

Overall, analysts expect median P&C and multiline EPS to grow 18.6% year-over-year in 2022.

Globe Life is the most valuable life insurer

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At the end of the first quarter, Globe Life Inc. was the most expensive life insurance carrier in the United States, with an estimated earnings multiple for the year 2022 of 12.4x. Georgia-based Aflac Inc. came in second with a multiple of 12.3x.

Sell-side analysts expect the life insurance industry’s median EPS to fall 3.6% year-over-year in 2022, largely on the back of steep declines forecast at big names like Brighthouse Financial Inc., MetLife Inc., Prudential Financial Inc. and Voya Financial Inc.

Kristan F. Talley