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 MetLife (NYSE: MET) 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.
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 $18.83 billion, up 10.6% year on year. This print exceeded analysts’ expectations by 3%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ book value per share estimates and a miss of analysts’ EPS estimates.
MetLife pulled off the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 7% since reporting and currently trades at $77.15.
Read our full report on MetLife 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.
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%. Aside from that, it was a mixed quarter as it also logged 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.
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 number met analysts’ expectations. Taking a step back, 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 6.4% since reporting and currently trades at $101.83.
Read our full, actionable report on Aflac here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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