As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the life insurance industry, including CNO Financial Group (NYSE: CNO) 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 Q2. As a group, revenues beat analysts’ consensus estimates by 0.8%.

Thankfully, share prices of the companies have been resilient as they are up 5.9% on average since the latest earnings results.

CNO Financial Group (NYSE: CNO)

Rebranded from Conseco in 2010 to signal a fresh start after navigating financial challenges, CNO Financial Group (NYSE: CNO) develops and markets health insurance, annuities, and life insurance products primarily targeting middle-income pre-retirees and retirees.

CNO Financial Group reported revenues of $954.9 million, up 1.6% year on year. This print fell short of analysts’ expectations by 0.7%. Overall, it was a softer quarter for the company with a significant miss of analysts’ book value per share estimates and a narrow beat of analysts’ EPS estimates.

"Building on our strong second quarter and first half results, CNO remains on track to achieve our full-year 2025-2027 return on equity targets," said Gary C. Bhojwani, chief executive officer.

Interestingly, the stock is up 5.3% since reporting and currently trades at $39.62.

Read our full report on CNO Financial Group here, it’s free.

Best Q2: 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 $4.43 billion, up 6.1% year on year, outperforming analysts’ expectations by 7.6%. The business had a stunning quarter with a beat of analysts’ EPS estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $34.97.

Is now the time to buy Corebridge Financial? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: 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 $2.15 billion, down 2.9% year on year, falling short of analysts’ expectations by 1.3%. It was a disappointing quarter as it posted a significant miss of analysts’ net premiums earned and EPS estimates.

Interestingly, the stock is up 1.4% since the results and currently trades at $46.82.

Read our full analysis of Brighthouse Financial’s results here.

Prudential (NYSE: PRU)

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 $13.51 billion, down 2.5% year on year. This result lagged analysts' expectations by 1%. Aside from that, it was a mixed quarter as it also recorded a solid beat of analysts’ net premiums earned estimates but a significant miss of analysts’ book value per share estimates.

The stock is up 7.3% since reporting and currently trades at $109.30.

Read our full, actionable report on Prudential here, it’s free.

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 $3.69 billion, down 9.4% year on year. This number missed analysts’ expectations by 7%. Overall, it was a softer quarter as it also produced a significant miss of analysts’ net premiums earned estimates and a significant miss of analysts’ book value per share estimates.

Principal Financial Group had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $80.72.

Read our full, actionable report on Principal Financial Group here, it’s free.

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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