Let’s dig into the relative performance of Primerica (NYSE: PRI) and its peers as we unravel the now-completed Q2 life insurance earnings season.
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%.
Thankfully, share prices of the companies have been resilient as they are up 5.1% on average since the latest earnings results.
Primerica (NYSE: PRI)
With a sales force of over 140,000 licensed representatives operating on an independent contractor model, Primerica (NYSE: PRI) provides term life insurance, investment products, and other financial services to middle-income households in the United States and Canada.
Primerica reported revenues of $793.3 million, up 7.1% year on year. This print exceeded analysts’ expectations by 0.9%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ book value per share estimates but a significant miss of analysts’ net premiums earned estimates.
“Our second quarter results underscore the resilience and strength of our business model,” said Glenn Williams, Chief Executive Officer of Primerica.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $266.85.
Is now the time to buy Primerica? Access our full analysis of the earnings results 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.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $34.45.
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.
Interestingly, the stock is up 1.8% since the results and currently trades at $47.
Read our full analysis of Brighthouse Financial’s results here.
Jackson Financial (NYSE: JXN)
Spun off from British insurer Prudential plc in 2021 after more than 60 years as its U.S. subsidiary, Jackson Financial (NYSE: JXN) offers annuity products and retirement solutions that help Americans grow and protect their retirement savings and income.
Jackson Financial reported revenues of $1.75 billion, up 1.4% year on year. This number was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it recorded a narrow beat of analysts’ EPS estimates.
The stock is up 12.3% since reporting and currently trades at $97.16.
Read our full, actionable report on Jackson Financial 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 $411.7 million, up 6.1% year on year. This print came in 3.5% below analysts' expectations. Overall, it was a slower quarter as it also produced a significant miss of analysts’ book value per share estimates and a slight miss of analysts’ net premiums earned estimates.
The stock is up 9.1% since reporting and currently trades at $46.12.
Read our full, actionable report on Horace Mann Educators here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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