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 reinsurance stocks fared in Q1, starting with Hamilton Insurance Group (NYSE: HG).
This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. The primary headwind remains the immense and concentrated exposure to large-scale catastrophe losses, as the growing impact of climate change challenges traditional risk models and creates significant earnings volatility. Additionally, they face the risk of adverse prior-year reserve development, where claims prove more costly than anticipated, while the eventual influx of new capital from alternative sources threatens to soften the market and compress future returns.
The 7 reinsurance stocks we track reported a mixed Q1. 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.
Best Q1: Hamilton Insurance Group (NYSE: HG)
Founded in 2013 and operating through three distinct underwriting platforms across four countries, Hamilton Insurance Group (NYSE: HG) operates global specialty insurance and reinsurance platforms across Lloyd's, Ireland, Bermuda, and the United States.
Hamilton Insurance Group reported revenues of $768.8 million, up 16.7% year on year. This print exceeded analysts’ expectations by 28.3%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EPS and net premiums earned estimates.
Hamilton Insurance Group scored the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 11.7% since reporting and currently trades at $21.44.
Is now the time to buy Hamilton Insurance Group? Access our full analysis of the earnings results here, it’s free.
Arch Capital Group (NASDAQ: ACGL)
With roots dating back to 1995 and now operating across insurance markets on six continents, Arch Capital Group (NASDAQ: ACGL) provides specialty insurance, reinsurance, and mortgage insurance services worldwide through its three main business segments.
Arch Capital Group reported revenues of $4.67 billion, up 18.6% year on year, outperforming analysts’ expectations by 1%. The business had a strong quarter with a solid beat of analysts’ net premiums earned estimates and an impressive 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 4.7% since reporting. It currently trades at $90.32.
Is now the time to buy Arch Capital Group? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Everest Group (NYSE: EG)
Rebranded from Everest Re in 2023 to reflect its evolution beyond just reinsurance, Everest Group (NYSE: EG) underwrites property and casualty reinsurance and insurance worldwide, serving insurance companies, corporations, and other clients across six continents.
Everest Group reported revenues of $4.26 billion, up 3.1% year on year, falling short of analysts’ expectations by 4.2%. It was a disappointing quarter as it posted a significant miss of analysts’ net premiums earned and EPS estimates.
As expected, the stock is down 2.3% since the results and currently trades at $336.78.
Read our full analysis of Everest Group’s results here.
Fidelis Insurance (NYSE: FIHL)
Founded in Bermuda in 2014 and designed to adapt nimbly to evolving market conditions, Fidelis Insurance (NYSE: FIHL) is a global specialty insurer and reinsurer that provides customized coverage across property, specialty, and bespoke risk solutions.
Fidelis Insurance reported revenues of $658.4 million, up 26.6% year on year. This print surpassed analysts’ expectations by 5.5%. It was a strong quarter as it also logged a narrow beat of analysts’ book value per share estimates.
The stock is down 4.6% since reporting and currently trades at $16.27.
Read our full, actionable report on Fidelis Insurance here, it’s free.
Reinsurance Group of America (NYSE: RGA)
Operating behind the scenes of the insurance industry since 1973, Reinsurance Group of America (NYSE: RGA) provides life and health reinsurance services to insurance companies, helping them manage risk and meet regulatory requirements.
Reinsurance Group of America reported revenues of $5.34 billion, down 17.5% year on year. This number lagged analysts' expectations by 2.9%. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts’ book value per share estimates but a significant miss of analysts’ net premiums earned estimates.
Reinsurance Group of America had the slowest revenue growth among its peers. The stock is down 1.1% since reporting and currently trades at $197.48.
Read our full, actionable report on Reinsurance Group of America here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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