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 Equitable Holdings (NYSE:EQH) 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 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 4.1% on average since the latest earnings results.
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. This print fell short of analysts’ expectations by 4.5%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue and EPS estimates.
“We reported second quarter Non-GAAP operating earnings per share of $1.10, or $1.41 excluding notable items, down 8% from the prior year quarter. While results were below our expectations in the quarter, primarily due to elevated mortality in our Individual Life block, we continue to see strong organic growth momentum, highlighted by net flows of $1.9 billion in Retirement and $2.0 billion in Wealth Management. In addition, we achieved several strategic milestones. Most notably, we closed our Individual Life reinsurance transaction with RGA on July 31st creating over $2 billion of value, further strengthening our balance sheet and reducing our exposure to future mortality claims by 75%. This will enhance focus on our core growth drivers of retirement, asset management and wealth management and drive significant shareholder value as we redeploy the proceeds,” said Mark Pearson, President and Chief Executive Officer.
Unsurprisingly, the stock is down 1.2% since reporting and currently trades at $50.29.
Read our full report on Equitable Holdings 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 $4.42 billion, up 14.8% year on year, outperforming analysts’ expectations by 7.3%. The business had a stunning quarter with an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
Corebridge Financial achieved the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.8% since reporting. It currently trades at $32.06.
Is now the time to buy Corebridge Financial? Access our full analysis of the earnings results here, it’s free for active Edge members.
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, falling short of analysts’ expectations by 1.3%. It was a disappointing quarter as it posted a significant miss of analysts’ net premiums earned and EPS estimates.
Interestingly, the stock is up 4.8% since the results and currently trades at $48.41.
Read our full analysis of Brighthouse Financial’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 logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ net premiums earned estimates.
F&G Annuities & Life achieved the biggest analyst estimates beat among its peers. The stock is down 9.5% since reporting and currently trades at $30.
Read our full, actionable report on F&G Annuities & Life here, it’s free for active Edge members.
CNO Financial Group (NYSE:CNO)
Rebranded from Conseco in 2010 to signal a fresh start after navigating financial challenges, CNO Financial Group (NYSE:CNO) develops and markets health insurance, annuities, and life insurance products primarily targeting middle-income pre-retirees and retirees.
CNO Financial Group reported revenues of $954.9 million, up 1.6% year on year. This print missed analysts’ expectations by 0.7%. Overall, it was a softer quarter as it also logged a significant miss of analysts’ book value per share estimates and a narrow beat of analysts’ EPS estimates.
The stock is up 6.2% since reporting and currently trades at $39.97.
Read our full, actionable report on CNO Financial Group here, it’s free for active Edge members.
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.
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