Looking back on life insurance stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Brighthouse Financial (NASDAQ: BHF) and its peers.
Life insurance companies collect premiums from policyholders in exchange for providing a future death benefit or retirement income stream. Interest rates matter for the sector (and make it cyclical), with higher rates allowing insurers to reinvest their fixed-income portfolios at more attractive yields and vice versa. Additionally, favorable demographic shifts, such as an aging population, are driving strong demand for retirement products while AI and data analytics offer significant opportunities to improve underwriting accuracy and operational efficiency. Conversely, the industry faces headwinds from persistent competition from agile insurtechs that threaten traditional distribution models.
The 15 life insurance stocks we track reported a slower Q2. As a group, revenues were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady as they are up 3.1% on average since the latest earnings results.
Brighthouse Financial (NASDAQ: BHF)
Spun off from MetLife in 2017 to focus specifically on retail financial products, Brighthouse Financial (NASDAQ: BHF) provides annuity contracts and life insurance products designed to help individuals protect wealth, generate income, and transfer assets.
Brighthouse Financial reported revenues of $2.15 billion, down 2.9% year on year. This print fell short of analysts’ expectations by 1.3%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ net premiums earned and EPS estimates.
“I am pleased that we ended the quarter with an estimated combined RBC ratio that was within our target range of 400% to 450% in normal market conditions,” said Eric Steigerwalt, president and CEO, Brighthouse Financial.
Interestingly, the stock is up 5% since reporting and currently trades at $48.50.
Read our full report on Brighthouse Financial here, it’s free for active Edge members.
Best Q2: Corebridge Financial (NYSE: CRBG)
Spun off from insurance giant AIG in 2022 to focus on the growing retirement market, Corebridge Financial (NYSE: CRBG) provides retirement solutions, annuities, life insurance, and institutional risk management products in the United States.
Corebridge Financial reported revenues of $4.11 billion, up 6.8% year on year, in line with analysts’ expectations. The business had a very strong quarter with a beat of analysts’ EPS estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.5% since reporting. It currently trades at $32.16.
Is now the time to buy Corebridge Financial? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: Equitable Holdings (NYSE: EQH)
Tracing its roots back to 1859 as one of America's oldest financial institutions, Equitable Holdings (NYSE: EQH) provides retirement planning, asset management, and life insurance products through its two main franchises, Equitable and AllianceBernstein.
Equitable Holdings reported revenues of $3.80 billion, up 5.1% year on year, falling short of analysts’ expectations by 4.5%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and EPS estimates.
As expected, the stock is down 4.4% since the results and currently trades at $48.66.
Read our full analysis of Equitable Holdings’s results here.
Horace Mann Educators (NYSE: HMN)
Founded in 1945 and named after the 19th-century education reformer known as the "father of American public education," Horace Mann Educators (NYSE: HMN) is an insurance company that specializes in providing auto, property, life, and retirement products tailored for educators and other public service employees.
Horace Mann Educators reported revenues of $411.7 million, up 6.1% year on year. This number lagged analysts' expectations by 3.5%. Overall, it was a slower quarter as it also logged a significant miss of analysts’ revenue and book value per share estimates.
The stock is up 5.7% since reporting and currently trades at $44.68.
Read our full, actionable report on Horace Mann Educators here, it’s free for active Edge members.
Lincoln Financial Group (NYSE: LNC)
Founded in 1905 by a group of Fort Wayne, Indiana businessmen who named the company after Abraham Lincoln, Lincoln National Corporation (NYSE: LNC) provides insurance, retirement plans, and wealth management products through its subsidiaries, operating under four main segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services.
Lincoln Financial Group reported revenues of $4.73 billion, up 4.4% year on year. This result beat analysts’ expectations by 1.1%. It was a strong quarter as it also recorded a beat of analysts’ EPS and net premiums earned estimates.
The stock is up 16.5% since reporting and currently trades at $39.84.
Read our full, actionable report on Lincoln Financial Group here, it’s free for active Edge members.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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