Looking back on life insurance stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Principal Financial Group (NASDAQ: PFG) 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 15 life insurance stocks we track reported a slower Q3. As a group, revenues beat analysts’ consensus estimates by 4.9%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

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 $3.90 billion, up 6.2% year on year. This print fell short of analysts’ expectations by 4.7%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue and net premiums earned estimates.

Interestingly, the stock is up 6% since reporting and currently trades at $84.31.

Read our full report on Principal Financial Group here, it’s free for active Edge members.

Best Q3: 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 $4.41 billion, up 2.8% year on year, falling short of analysts’ expectations by 0.9%. However, the business still had a very strong quarter with a solid beat of analysts’ book value per share estimates and a beat of analysts’ EPS estimates.

The market seems content with the results as the stock is up 1.7% since reporting. It currently trades at $110.64.

Is now the time to buy Aflac? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Brighthouse Financial (NASDAQ: BHF)

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, falling short of analysts’ expectations by 4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and net premiums earned estimates.

The stock is flat since the results and currently trades at $65.58.

Read our full analysis of Brighthouse Financial’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 $838.9 million, up 8.4% year on year. This print surpassed analysts’ expectations by 1.7%. Zooming out, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but a miss of analysts’ book value per share estimates.

The stock is up 3.1% since reporting and currently trades at $263.11.

Read our full, actionable report on Primerica here, it’s free for active Edge members.

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 $1.69 billion, up 17.3% year on year. This result beat analysts’ expectations by 20.8%. Overall, it was a very strong quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ net premiums earned estimates.

The stock is up 6.7% since reporting and currently trades at $31.88.

Read our full, actionable report on F&G Annuities & Life here, it’s free for active Edge members.

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.

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