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 Q3, starting with Brighthouse Financial (NASDAQ:BHF).
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 14 life insurance stocks we track reported a slower Q3. As a group, revenues beat analysts’ consensus estimates by 3.2%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10% since the latest earnings results.
Spun off from MetLife in 2017 to focus specifically on retail financial products, Brighthouse Financial (NASDAQ:BHF) provides annuity contracts and life insurance products designed to help individuals protect wealth, generate income, and transfer assets.
Brighthouse Financial reported revenues of $2.17 billion, flat year on year. This print fell short of analysts’ expectations by 4%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.
“Brighthouse Financial delivered solid results in the quarter as we continued to execute our strategy,” said Eric Steigerwalt, president and CEO, Brighthouse Financial.
Brighthouse Financial Total Revenue
Unsurprisingly, the stock is down 8.3% since reporting and currently trades at $60.22.
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 $2.01 billion, up 719% year on year, outperforming analysts’ expectations by 4.4%. The business had an exceptional quarter with a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
Jackson Financial Total Revenue
Jackson Financial achieved the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.2% since reporting. It currently trades at $107.29.
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 4.1% since the results and currently trades at $72.55.
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 number was in line with analysts’ expectations. Aside from that, 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 12.2% since reporting and currently trades at $94.14.
Founded in 1905 by a group of Fort Wayne, Indiana businessmen who named the company after Abraham Lincoln, Lincoln National Corporation (NYSE:LNC) provides insurance, retirement plans, and wealth management products through its subsidiaries, operating under four main segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services.
Lincoln Financial Group reported revenues of $4.89 billion, up 5.7% year on year. This print topped analysts’ expectations by 1.3%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ net premiums earned estimates and a beat of analysts’ EPS estimates.
The stock is down 14.4% since reporting and currently trades at $32.95.
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