As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at life insurance stocks, starting with Principal Financial Group (NASDAQ: PFG).
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.
Thankfully, share prices of the companies have been resilient as they are up 5.6% on average since the latest earnings results.
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 $3.69 billion, down 9.4% year on year. This print fell short of analysts’ expectations by 7%. Overall, it was a softer quarter for the company with a significant miss of analysts’ net premiums earned and book value per share estimates.
Principal Financial Group delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 3.2% since reporting and currently trades at $82.95.
Read our full report on Principal Financial Group here, it’s free.
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 $4.42 billion, up 5.8% year on year, outperforming analysts’ expectations by 7.3%. The business had a stunning 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 6.5% since reporting. It currently trades at $32.50.
Is now the time to buy Corebridge Financial? Access our full analysis of the earnings results here, it’s free.
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’ EPS estimates.
Interestingly, the stock is up 4.7% since the results and currently trades at $53.31.
Read our full analysis of Equitable Holdings’s results here.
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 $1.35 billion, up 12.6% year on year. This number beat analysts’ expectations by 13.8%. Overall, it was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ net premiums earned estimates.
F&G Annuities & Life pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 3.9% since reporting and currently trades at $34.43.
Read our full, actionable report on F&G Annuities & Life here, it’s free.
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 print surpassed analysts’ expectations by 1.1%. It was a strong quarter as it also logged a beat of analysts’ EPS and net premiums earned estimates.
The stock is up 20.1% since reporting and currently trades at $41.07.
Read our full, actionable report on Lincoln Financial Group here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
