The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how life insurance stocks fared in Q1, starting with Lincoln Financial Group (NYSE: LNC).
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%.
While some life insurance stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.6% since the latest earnings results.
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 $4.69 billion, up 2.2% 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 EPS in line with analysts’ estimates.
Unsurprisingly, the stock is down 1% since reporting and currently trades at $33.64.
Read our full report on Lincoln Financial Group 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 delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 5.5% since reporting. It currently trades at $34.75.
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 estimates and a significant miss of analysts’ 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 12.7% since the results and currently trades at $31.32.
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 print beat analysts’ expectations by 2.1%. Taking a step back, it was a slower quarter as it logged a significant miss of analysts’ book value per share estimates and a slight miss of analysts’ EPS estimates.
The stock is up 3.3% since reporting and currently trades at $79.90.
Read our full, actionable report on Principal Financial Group 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 $4.32 billion, down 2.3% year on year. This result was in line with analysts’ expectations. More broadly, it was a slower quarter as it produced a significant miss of analysts’ book value per share estimates and a slight miss of analysts’ EPS estimates.
The stock is down 7.5% since reporting and currently trades at $100.65.
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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