As we discussed in the last three parts of this series, renowned billionaire investor Warren Buffett’s Berkshire Hathaway (BRK.A)(BRK.B) has increased its bets on the banking sector.
So far in this series, we’ve looked at Warrant Buffet’s investment firm, Berkshire Hathaway’s (BRK.A)(BRK.B), top five investments in the third quarter.
Improving GDP growth, a healthy job market, and steady wage growth have increased the disposable income of consumers, thereby giving them greater spending power.
Services growth Berkshire Hathaway’s (BRK.B) Services and Retail segment has stakes across flight services, electronics, FMCG (fast-moving consumer goods), retail, automotive, and financial services. However, the company hasn’t built up a stake in the e-Commerce industry in or outside the United States. CEO Warren Buffett remains wary of the fact that these acquisitions will come at high multiples, low profits, […]
The economic and business environment prevailing in an economy affects the business fundamentals of payment processing giants like Visa (V) and Mastercard (MA).
Visa’s (V) performance is expected to be primarily driven by spending trends, electronic payment adoption, and tapping into areas where many payments are still made in cash.
Bank of America’s (BAC) spending on technology has increased substantially in recent quarters to improve trading, banking penetration, and wealth services.
Claims could subside The insurance sector (IYF) faced headwinds and losses in 3Q17 due to hurricanes across the US East Coast. Berkshire Hathaway (BRK.B), AIG (AIG), Prudential Financial (PRU), MetLife (MET), and other reinsurers faced headwinds and underwriting losses in 3Q17, which were partially offset by gains from debt and equity investments. In 4Q17, claims are […]
Commercial banks and asset managers (IYF) are focusing on technology spending in order to boost their trading activity, improve efficiency, and reduce administrative costs.
Berkshire Hathaway (BRK.B) reported losses before tax of $963 million in 3Q17 compared to earnings before taxes of $1.4 billion in the corresponding period last year.
Wells Fargo (WFC) has seen a marginal improvement, with “underperform” ratings declining from five to four and “hold” ratings increasing from 13 to 15.
Wells Fargo (WFC) saw its total loans increase a marginal 1% on a YoY (year-over-year) basis to $952 billion, largely due to a decline in consumer loans.
Berkshire Hathaway Insurance segment is expected to see a YoY rise in revenues due to the sale of policies in automotive, property, and reinsurance offerings.
Chubb’s North America Agricultural Insurance division generated underwriting income of $116.0 million in 1H17 compared to $67.0 million in 1H16, which implies an increase of 73.1%.
In 1H17, Chubb Limited’s (CB) Life Insurance business reported income of $114.0 million in 1H17 compared to $134.0 million in 1H16, reflecting a 14.9% decline.
Chubb Limited’s (CB) Personal Property and Casualty business’s underwriting income rose from $138.0 million in 1H16 to $285.0 million in 1H17, reflecting an increase of 106.5%.
Chubb Limited (CB) reported net investment income of ~$1.5 billion in 1H17 compared to ~$1.4 billion in 1H16, reflecting a 9.6% increase. CB generated an 11% return on equity on a trailing-12-month basis.
Catching up to peers Bank of America (BAC) stock has risen 15.6% over the past six months and 60.1% over the past year, mainly due to improved operating performance supported by credit offtake, rising efficiency, and inflow in its asset management division. This improvement was partially offset by subdued trading over the last couple of quarters. In […]
According to Brian Duperreault, chief executive officer of American International Group (AIG), a company in any industry has to take the digitization path for long-term growth and success.
American International Group (AIG) is expected to announce its earnings for 3Q17 on November 2, 2017. Wall Street analysts have provided a high estimate of $0.90 for AIG’s 3Q17 EPS.
Berkshire Hathaway (BRK.B) saw subdued profits in its Insurance segment in 2Q17, mainly due to higher claims. The trend is set to get stronger in the second half of 2017
Revenue and earnings Realty Income (O), a retail REIT engaged in US real estate investment, recorded 8% revenue growth in 2016, compared with 10% growth in 2015. The growth was driven by rentals and tenant reimbursements. Its operating costs and other expenses (including interest expenses) rose 6% in 2016 and 8% in 2015. Its gains on asset […]
Lincoln National is covered by 14 analysts, of which four have rated the stock a “strong buy,” three have given a “buy” rating, and seven have given a “hold.”
Chubb’s one-year forward PE ratio stands at 13.15x, compared with the peer average of 12.09x, which means that Chubb is trading at a premium valuation.
In 2017, MetLife (MET) is expected to declare a total dividend of $1.61 per share, representing an increase of 1.9% from the total dividend it declared in 2016.
Wells Fargo (WFC) has continued to spend on employee expenses, FDIC, equipment, and other services amid declining non-interest income and marginal growth of interest income driven largely by rate hikes.
Chubb’s (CB) Overseas General Insurance division saw a decline in its net premiums written in 2Q17 from $2.01 billion as compared to $2.03 billion in 2Q16.
Chubb’s (CB) North America Commercial Property and Casualty Insurance division witnessed a marginal fall in its net premiums written in 2Q17 as compared to 2Q16.
Prudential Financial (PRU) is covered by 17 analysts. Four of these analysts rated the stock as a “strong buy,” and two analysts gave a “buy” rating on the stock.
Wall Street analysts recommended a one-year price target of $116.07 per share on Prudential Financial (PRU), reflecting an increase of ~14.1% from the current price.
In 2016, Prudential Financial (PRU) declared total dividends of $2.80 per share. In 2017, the company is expected to declare total dividends of $3.06 per share.
In 2Q17, on the basis of annualized new business premiums, sales in Prudential’s Individual Life business stood at $153 million, reflecting a marginal decline of ~3.8% year-over-year.
After excluding market-driven and discrete items, earnings from Prudential Financial’s individual annuities stood at $512 million in 2Q17 compared to $375 million in 2Q16.
In 2Q17, Prudential Financial (PRU) reported 2Q17 net income of $491 million compared to $921 million in 2Q16. Its 2Q17 earnings per share of $2.09 missed the estimate of $2.70.
Wall Street analysts have given a one-year price target of $70.00 on American International Group (AIG), which reflects an ~14.1% increase from the current price.
In 2Q16, AIG reported operating general operating expenses (or GOE) of $2.4 billion, which the company reduced by $191.0 million. It reported GOE of $2.2 billion in 2Q17.
American International Group’s (AIG) Consumer Business division reported pretax operating income of ~$1.3 billion in 2Q17 compared to $948.0 million in 2Q16.
AIG is expected to post earnings per share of $1.22 in 3Q17, an ~20.3% decline from its 2Q17 earnings. AIG is expected to report revenues of ~$11.8 billion in 3Q17.
