Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Aflac (NYSE: AFL) and the best and worst performers in the life insurance industry.
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 softer Q1. As a group, revenues missed analysts’ consensus estimates by 3.1%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Aflac (NYSE: AFL)
Known for its iconic duck mascot that has quacked "Aflac!" in commercials since 2000, Aflac (NYSE: AFL) provides supplemental health and life insurance policies that pay cash benefits directly to policyholders for expenses not covered by their primary insurance.
Aflac reported revenues of $4.32 billion, down 2.3% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ book value per share estimates and a slight miss of analysts’ EPS estimates.
Commenting on the company's results, Aflac Incorporated Chairman and Chief Executive Officer Daniel P. Amos stated: "I am pleased that Aflac delivered very solid adjusted earnings for the quarter.
The stock is down 3.5% since reporting and currently trades at $105.
Read our full report on Aflac here, it’s free.
Best Q1: 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 $4.74 billion, down 19.1% year on year, outperforming analysts’ expectations by 7.9%. The business had a satisfactory quarter.
Corebridge Financial achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 9.3% since reporting. It currently trades at $36.
Is now the time to buy Corebridge Financial? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: F&G Annuities & Life (NYSE: FG)
Founded in 1959 and serving approximately 677,000 policyholders who rely on its financial protection products, F&G Annuities & Life (NYSE: FG) provides fixed annuities, life insurance, and pension risk transfer solutions to retail and institutional clients.
F&G Annuities & Life reported revenues of $930 million, down 40.7% year on year, falling short of analysts’ expectations by 36.9%. It was a disappointing quarter as it posted a significant miss of analysts’ net premiums earned and EPS estimates.
F&G Annuities & Life delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 10.4% since the results and currently trades at $32.14.
Read our full analysis of F&G Annuities & Life’s results here.
Principal Financial Group (NASDAQ: PFG)
Founded in 1879 by a Civil War veteran seeking to provide financial security for families, Principal Financial Group (NASDAQGS:PFG) provides retirement solutions, asset management, and employee benefits to businesses, individuals, and institutional clients globally.
Principal Financial Group reported revenues of $4.02 billion, up 5.5% year on year. This result beat analysts’ expectations by 2.1%. Aside from that, it was a slower quarter as it recorded a significant miss of analysts’ book value per share estimates and a slight miss of analysts’ EPS estimates.
The stock is up 2.4% since reporting and currently trades at $79.19.
Read our full, actionable report on Principal Financial Group here, it’s free.
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 $416.4 million, up 7.9% year on year. This print lagged analysts' expectations by 1.9%. Overall, it was a slower quarter as it also logged a significant miss of analysts’ book value per share estimates.
The stock is down 1.4% since reporting and currently trades at $42.89.
Read our full, actionable report on Horace Mann Educators here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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