Wrapping up Q1 earnings, we look at the numbers and key takeaways for the life insurance stocks, including Equitable Holdings (NYSE:EQH) 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 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 2.1% since the latest earnings results.
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 $3.78 billion, up 4% year on year. This print fell short of analysts’ expectations by 5.7%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates.
“For the first quarter, we reported Non-GAAP operating earnings per share of $1.30, or $1.35 after adjusting for notable items. We continue to see strong organic growth momentum across our businesses, with $1.6 billion of net inflows in Retirement, $2.0 billion of advisory net inflows in Wealth Management and $2.7 billion of total active net inflows at AllianceBernstein. While we recognize that we have entered a period of increased macro uncertainty, Equitable has proven ability to navigate volatile markets and create long-term shareholder value. Times like this only heighten the need for the retirement and investment advice that we provide, and our strong balance sheet enables us to continue investing for growth while also returning capital to shareholders,” said Mark Pearson, President and Chief Executive Officer.
Unsurprisingly, the stock is down 1.3% since reporting and currently trades at $52.93.
Read our full report on Equitable Holdings 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 7% since reporting. It currently trades at $35.26.
Is now the time to buy Corebridge Financial? Access our full analysis of the earnings results here, it’s free.
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 13.5% since the results and currently trades at $31.04.
Read our full analysis of F&G Annuities & Life’s results here.
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 recorded a significant miss of analysts’ book value per share estimates and a slight miss of analysts’ EPS estimates.
The stock is down 6.4% since reporting and currently trades at $101.83.
Read our full, actionable report on Aflac 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 $416.4 million, up 7.9% year on year. This number came in 1.9% below analysts' expectations. It was a slower quarter as it also logged a significant miss of analysts’ book value per share estimates.
The stock is down 4.9% since reporting and currently trades at $41.37.
Read our full, actionable report on Horace Mann Educators here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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