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 Q2, starting with Horace Mann Educators (NYSE:HMN).
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 were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady as they are up 4.1% on average since the latest earnings results.
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 fell short of analysts’ expectations by 3.5%. Overall, it was a slower quarter for the company with a significant miss of analysts’ book value per share and net premiums earned estimates.
“Record second-quarter core earnings reflect very strong business profitability and solid growth momentum, as well as Property & Casualty catastrophe costs that were meaningfully below prior year and recent prior periods,” said Horace Mann President & CEO Marita Zuraitis.
Interestingly, the stock is up 8.2% since reporting and currently trades at $45.76.
Read our full report on Horace Mann Educators 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 $4.42 billion, up 5.8% year on year, outperforming analysts’ expectations by 7.3%. The business had a stunning quarter with a beat of analysts’ EPS estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.3% since reporting. It currently trades at $31.90.
Is now the time to buy Corebridge Financial? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $3.80 billion, up 5.1% year on year, falling short of analysts’ expectations by 4.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Interestingly, the stock is up 5.1% since the results and currently trades at $53.53.
Read our full analysis of Equitable Holdings’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 $3.69 billion, down 9.4% year on year. This print lagged analysts' expectations by 7%. Overall, it was a softer quarter as it also recorded a significant miss of analysts’ net premiums earned estimates and a significant miss of analysts’ book value per share estimates.
Principal Financial Group had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $80.86.
Read our full, actionable report on Principal Financial Group here, it’s free.
Unum Group (NYSE:UNM)
Tracing its roots back to 1848 when financial security for workers was virtually non-existent, Unum Group (NYSE:UNM) provides workplace financial protection benefits including disability, life, accident, critical illness, dental and vision insurance primarily through employers.
Unum Group reported revenues of $3.38 billion, up 4.2% year on year. This number surpassed analysts’ expectations by 1.5%. However, it was a softer quarter as it logged a significant miss of analysts’ book value per share and EPS estimates.
The stock is down 7.2% since reporting and currently trades at $75.10.
Read our full, actionable report on Unum Group 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.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.