After the bell yesterday, we got two earnings reports from the insurance sector. At this time last year, many insurance companies had poor earnings or even losses due to major hurricanes. Fortunately for this year, there hasn’t been much hurricane damage so more insurance stocks are posting decent results.
For the third quarter, Allstate’s (ALL) operating earnings were 99 cents a share which is a huge improvement over last year’s third-quarter loss of 35 cents a share. However, this year’s result was still two cents below Wall Street’s estimate. I currently rate Allstate a Hold.
Prudential (PRU) saw its third-quarter operating earning soar from $1.02 a share last year to $1.59 for this year. That was 26 cents more than Wall Street was expecting. I’m very impressed by these results and I rate Prudential a Buy.
You can see my top three insurance stocks here.