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 Globe Life (NYSE: GL) 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 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.
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 $1.48 billion, up 3.8% year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with a significant miss of analysts’ book value per share and EPS estimates.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $122.09.
Read our full report on Globe Life 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 achieved 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.
Weakest Q1: 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, falling short of analysts’ expectations by 5.7%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
As expected, the stock is down 1.3% since the results and currently trades at $52.93.
Read our full analysis of Equitable Holdings’s results here.
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 $803.6 million, up 9.4% year on year. This result beat analysts’ expectations by 2.1%. Taking a step back, it was a mixed quarter as it also recorded net premiums earned in line with analysts’ estimates but a slight miss of analysts’ book value per share estimates.
The stock is flat since reporting and currently trades at $267.39.
Read our full, actionable report on Primerica here, it’s free.
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 $1.77 billion, up 5.5% year on year. This number was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it logged EPS in line with analysts’ estimates.
The stock is up 3.4% since reporting and currently trades at $87.30.
Read our full, actionable report on Jackson Financial 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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