Citigroup analysts lowered its earnings estimates for insurance brokers to reflect “persistent” weakness in the pricing for property-casualty insurance products, but two brokers with global reach will continue to outperform their peers.
“Specifically, we view Aon and Willis as the only two brokers that should be able to grow organic revenues, margins and earnings per share over the next three years,” the report said.
The two brokers, the report notes, will perform better because their exposure to Asia will continue to provide growth despite the weak pricing environment and they have a larger percentage of recurring fee-based income revenue compared to the commission-based revenues regional brokers are more dependent on.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
