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 Primerica (NYSE: PRI) 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%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged 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 $803.6 million, up 9.4% year on year. This print exceeded analysts’ expectations by 2.1%. Despite the top-line beat, it was still a mixed quarter for the company with net premiums earned in line with analysts’ estimates but a slight miss of analysts’ book value per share estimates.
Interestingly, the stock is up 3% since reporting and currently trades at $274.68.
Is now the time to buy Primerica? Access our full analysis of the earnings results 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 7.3% since reporting. It currently trades at $35.35.
Is now the time to buy Corebridge Financial? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 and 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 10.2% since the results and currently trades at $32.23.
Read our full analysis of F&G Annuities & Life’s results here.
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 result surpassed analysts’ expectations by 3%. More broadly, it was a slower quarter as it recorded a significant miss of analysts’ book value per share estimates and a miss of analysts’ EPS estimates.
MetLife pulled off the fastest revenue growth among its peers. The stock is up 1% since reporting and currently trades at $80.15.
Read our full, actionable report on MetLife 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 print met analysts’ expectations. Zooming out, it was a mixed quarter as it produced EPS in line with analysts’ estimates.
The stock is up 4.9% since reporting and currently trades at $88.55.
Read our full, actionable report on Jackson Financial here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
