Looking back on life insurance stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Corebridge Financial (NYSE:CRBG) 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 13 life insurance stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 3.7%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.6% since the latest earnings results.
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 $6.34 billion, up 35.7% year on year. This print exceeded analysts’ expectations by 47.3%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
Corebridge Financial Total Revenue
Corebridge Financial scored the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 11.7% since reporting and currently trades at $27.54.
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 $1.78 billion, up 11.7% year on year, outperforming analysts’ expectations by 15%. The business performed better than its peers, but it was unfortunately a slower quarter with a significant miss of analysts’ EPS estimates and a significant miss of analysts’ book value per share estimates.
F&G Annuities & Life Total Revenue
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 18.3% since reporting. It currently trades at $22.62.
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 $3.25 billion, flat year on year, falling short of analysts’ expectations by 1.1%. It was a disappointing quarter as it posted a significant miss of analysts’ book value per share estimates and a significant miss of analysts’ EPS estimates.
As expected, the stock is down 4.5% since the results and currently trades at $72.24.
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 $853.5 million, up 8% year on year. This result topped analysts’ expectations by 0.8%. It was a strong quarter as it also logged a solid beat of analysts’ book value per share estimates and a narrow beat of analysts’ revenue estimates.
The stock is flat since reporting and currently trades at $252.84.
Recognized by its iconic Rock of Gibraltar logo symbolizing strength and stability since 1896, Prudential Financial (NYSE:PRU) provides life insurance, annuities, retirement solutions, investment management, and other financial services to individual and institutional customers globally.
Prudential reported revenues of $14.52 billion, up 11.6% year on year. This print was in line with analysts’ expectations. Zooming out, it was a slower quarter as it recorded a significant miss of analysts’ book value per share estimates and a significant miss of analysts’ EPS estimates.
The stock is down 5.7% since reporting and currently trades at $101.04.
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn’t slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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