Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at MetLife (NYSE:MET) 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 beat analysts’ consensus estimates by 0.8%.
In light of this news, share prices of the companies have held steady as they are up 3.8% on average since the latest earnings results.
MetLife (NYSE:MET)
Founded in 1863 by a group of New York businessmen during the Civil War era, MetLife (NYSE:MET) is a global financial services company that provides insurance, annuities, employee benefits, and asset management services to individuals and businesses worldwide.
MetLife reported revenues of $17.92 billion, down 4.1% year on year. This print fell short of analysts’ expectations by 3.9%. Overall, it was a softer quarter for the company with a significant miss of analysts’ book value per share estimates and a significant miss of analysts’ EPS estimates.
Interestingly, the stock is up 3.9% since reporting and currently trades at $79.
Read our full report on MetLife 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 $4.43 billion, up 6.1% year on year, outperforming analysts’ expectations by 7.6%. 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 1.9% since reporting. It currently trades at $34.11.
Is now the time to buy Corebridge Financial? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 estimates and a significant miss of analysts’ EPS estimates.
The stock is flat since the results and currently trades at $46.42.
Read our full analysis of Brighthouse Financial’s results here.
Globe Life (NYSE:GL)
With roots dating back to 1900 and a rebranding from Torchmark Corporation in 2019, Globe Life (NYSE:GL) is an insurance holding company that offers life insurance, supplemental health insurance, and annuity products through various distribution channels.
Globe Life reported revenues of $1.5 billion, up 3.2% year on year. This print was in line with analysts’ expectations. However, it was a softer quarter as it recorded a significant miss of analysts’ book value per share estimates and a narrow beat of analysts’ EPS estimates.
The stock is up 12.1% since reporting and currently trades at $140.30.
Read our full, actionable report on Globe Life here, it’s free.
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 $4.54 billion, up 3.5% year on year. This number beat analysts’ expectations by 3.1%. Aside from that, it was a slower quarter as it produced a significant miss of analysts’ book value per share estimates and a narrow beat of analysts’ EPS estimates.
The stock is up 9.3% since reporting and currently trades at $108.19.
Read our full, actionable report on Aflac 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.
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