Latest news with #underwriting
Yahoo
a day ago
- Business
- Yahoo
Oportun Harnesses Advanced Technology: Could This Be a Turning Point?
Oportun Financial OPRT has been leveraging technology to boost its underwriting standards and offer personalized customer service. The company uses artificial intelligence (AI), particularly machine learning (ML), to use alternative datasets to assess the credit profiles of its clients. This enables it to provide a score to roughly all its clients, including those who have little to no credit the company has been leveraging data from the recent inflationary period to enhance the V12 credit model to align with conservative credit standards through granular decision-making. OPRT acquired Hello Digit, Inc. in 2021, a neobanking platform offering automated savings, investing, and banking tools. This enables enhanced underwriting, leading to lower default risks, and ensures consistent revenue growth while mitigating costs. As a result, OPRT's annualized net charge-off (NCO) rate declined in 2024 to 12% from 12.2% in 2023. The NCO rate rose to 12.2% during the first quarter of 2025 due to lower average daily principal balance as the company sought to reduce back-book loan the lending database allows OPRT to scale up its operations efficiently with minimal infrastructure investment. Additionally, the company offers the Set & Save product, which helps its clients manage their money by analyzing their obligations and expense routines. Thus, the assimilation of sophisticated technology to address its customers' needs offers the company a competitive edge over its counterparts, which often rely on traditional datasets to provide credit scores. This enables it to grow its market share rapidly and achieve efficiency alongside solid underwriting. Oportun's peers like Enova International, Inc. ENVA and Regional Management Corp. RM have also been using robust technology to improve credit underwriting capabilities. Enova uses The Colossus Analytics Engine, a proprietary technology, to offer analytics and customer service capabilities to quickly evaluate, underwrite, and fund loans or provide financing. Roughly 90% of the models are ML-based for Regional Management has been improving its technological infrastructure to reduce its delinquency rates and source low-risk originations. Regional Management had a 7.1% delinquency rate during the first quarter of 2025. Shares of Oportun have surged 80.4% so far this year against the industry's decline of 6.3%. Image Source: Zacks Investment Research From a valuation standpoint, OPRT trades at a price-to-book ratio of 0.72, well below the industry average. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Oportun's 2025 and 2026 earnings indicates year-over-year growth of 63.9% and 39.2%, respectively. Earnings estimates have been revised downward for both years over the past 30 days. Image Source: Zacks Investment Research Oportun currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 Regional Management Corp. (RM) : Free Stock Analysis Report Enova International, Inc. (ENVA) : Free Stock Analysis Report Oportun Financial Corporation (OPRT) : 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
Yahoo
4 days ago
- Business
- Yahoo
Mphasis partners with Sixfold to enhance AI-driven insurance underwriting
Indian IT company Mphasis has entered a strategic partnership with Sixfold, a US and UK-based AI underwriting company, to bolster capabilities in insurance underwriting. As an implementation partner, Mphasis will integrate Sixfold's AI platform to assist insurers in accelerating their underwriting processes. The platform aims to streamline submission intake and provide underwriters with contextual risk insights to enable quicker and more confident decision-making. Sixfold's AI solution, tailored for life and disability, commercial property & casualty and specialty, and reinsurance, is designed to reduce review times by more than 50% and increase gross written premium (GWP) per underwriter by supporting smarter and faster risk selection, while maintaining accuracy. The collaboration seeks to optimise underwriting processes, improve operational efficiency and promote intelligent decision-making through Sixfold's advanced AI technology. Mphasis chief solutions officer Srikumar Ramanathan stated: 'By leveraging Sixfold's AI expertise in combination with expertise from and our insurance technology capabilities, we are able to deliver advanced, data-driven automation solutions for global insurers, driving efficiency, accuracy and innovation across the insurance value chain.' Sixfold's platform is already in use by carriers and is designed to integrate into existing workflows. It also adjusts to the specific risk appetite of each insurer, providing recommendations that adhere to the insurer's underwriting guidelines. Sixfold founder and CEO Alex Schmelkin said: 'Sixfold was built to solve real problems for underwriters – and to make the entire process better for brokers and customers. That means making implementation simple and fast. 'Mphasis has a great track record of getting technology live inside real-world insurance workflows. With them, insurers can move quickly, see impact fast and do it all without adding extra work to their teams. That is a win for everyone involved.' Last year, Sixfold raised $15m (£11.07m) in a Series A funding round, using the investment to expand its AI and machine learning engineering team. "Mphasis partners with Sixfold to enhance AI-driven insurance underwriting " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Globe and Mail
09-06-2025
- Business
- Globe and Mail
BRK.B's Insurance Business Grows Steadily: Can it Accelerate Growth?
Berkshire Hathaway 's ( BRK.B ) insurance operations serve as the cornerstone of its business model and remain a key growth engine. It's a conglomerate with more than 90 subsidiaries engaged in diverse business activities but is one of the largest property and casualty insurers globally. Berkshire operates through a diverse portfolio of insurance businesses, including GEICO (auto insurance), General Re (reinsurance), and Berkshire Hathaway Reinsurance Group (BHRG). These subsidiaries consistently generate meaningful underwriting profits and collectively represent about one-quarter of Berkshire's total revenues. The segment is well-positioned for sustained growth, supported by broad market exposure, pricing discipline and strong underwriting capabilities — even in adverse market conditions. Berkshire's insurance business continues to generate substantial float—the pool of premiums held before claims are paid. This float has grown steadily, rising from roughly $114 billion in 2017 to $173 billion by the end of the first quarter of 2025. The scale and reliability of this capital have enabled Warren Buffett to invest strategically in both equities and wholly owned businesses, amplifying returns and compounding shareholder value over time. The insurance segment, therefore, contributes far beyond earnings, fueling capital deployment flexibility and enhancing return on equity. For nearly six decades, Berkshire has thrived under Buffett's leadership. As the behemoth prepares for a leadership transition, with Greg Abel set to become CEO on Jan. 1, 2026, investors are watching closely. Buffett will remain executive chairman, ensuring continuity as Berkshire's insurance-led model continues to anchor its long-term strategy. What About BRK.B's Competitors? Chubb Limited CB and The Travelers Companies TRV are two other notable companies in the insurance space. Chubb is focused on capturing growth opportunities in the middle-market segment across both domestic and international arenas. To fuel its long-term expansion, it is strengthening core package solutions while expanding its portfolio of specialty products. Chubb is investing strategically in key initiatives that support its overarching growth objectives. Travelers' insurance operations, benefiting from disciplined underwriting, pricing strategies and a diversified portfolio of personal, business, and bond & specialty insurance, are its key growth engine. Its conservative risk management enables strong returns and sustained shareholder value even amid market volatility. BRK.B's Price Performance Shares of BRK.B have gained 8.9% year to date, underperforming the industry. BRK.B's Expensive Valuation BRK.B trades at a price-to-book value ratio of 1.62, above the industry average of 1.58. But it carries a Value Score of D. Image Source: Zacks Investment Research Estimates Movement for BRK.B The Zacks Consensus Estimate for BRK.B's second-quarter and third-quarter 2025 EPS has moved down 3% and 0.3%, respectively, over the past 30 days. The consensus estimate for full-year 2025 has increased 0.2% and the same for 2026 has moved 2.7% higher. While the consensus estimate for BRK.B's 2025 EPS indicates a decline, the same for 2026 suggests an increase. The consensus estimates for BRK.B's 2025 and 2026 revenues indicate year-over-year increases. BRK.B stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. The Travelers Companies, Inc. (TRV): Free Stock Analysis Report Chubb Limited (CB): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
Bloomberg
09-06-2025
- Business
- Bloomberg
Clearlake Hires Lederman from KKR as Head of Capital Markets
Clearlake Capital Group hired Josh Lederman from KKR & Co. for the newly created role of head of capital markets, according to a spokesperson for the firm. In his new role, Lederman will oversee debt origination, underwriting and distribution in what Clearlake sees as a first step in building a broader capital markets team, an effort that includes obtaining a broker-dealer license.
Associated Press
06-06-2025
- Business
- Associated Press
W/R/B Underwriting Rebrands as Berkley Specialty London
LONDON--(BUSINESS WIRE)--Jun 6, 2025-- W/R/B Underwriting, a leading provider of specialty insurance solutions, is proud to announce its official rebrand to Berkley Specialty London, effective today. This strategic change marks a significant milestone in the company's evolution and reflects its alignment with the globally recognised Berkley brand. The rebrand to Berkley Specialty London underscores the company's continued commitment to delivering exceptional underwriting and claims handling expertise, long-term stability, and service excellence—while embracing a stronger, more unified identity with its parent company - W. R. Berkley Corporation. 'This is more than a name change—it's a better reflection of who we are and where we're headed,' said James Hastings, President and CEO. 'As Berkley Specialty London, we're building on our strong foundation while positioning ourselves for future growth, innovation, and deeper partnerships with our clients, brokers and distribution partners.' Rob Berkley, President and CEOof W. R, Berkley Corporation said: 'The London market is one of the most important in the industry and we have been a proud participant within it for decades. The rebrand of W/R/B Underwriting to Berkley Specialty London fully encapsulates our efforts, commitment and our value proposition in the London market.' While the trading name is changing, the core of the business remains the same. Clients will continue to work with the same trusted team, benefit from the same tailored solutions, and experience the same high standards of service as always. About Berkley Specialty London Berkley Specialty London is a specialist insurer, providing innovative insurance solutions across the Specialty Property and Specialty Casualty sectors. Supported by the strength of W. R. Berkley Corporation, one of the world's premier commercial lines property and casualty insurance providers, Berkley Specialty London combines offers expertise, stability and collaboration to its trading partners and customers. For more information, please visit View source version on CONTACT: Media Contact: Ruby Karatziola Marketing, Events and Communications Officer [email protected] KEYWORD: UNITED KINGDOM EUROPE INDUSTRY KEYWORD: FINANCE HEALTH PROFESSIONAL SERVICES INSURANCE HEALTH INSURANCE SOURCE: Berkley Specialty London Copyright Business Wire 2025. PUB: 06/06/2025 04:30 AM/DISC: 06/06/2025 04:28 AM
