Looking back on insurance stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Hartford (NYSE: HIG) and its peers.
The insurance industry absorbs and diversifies risk, providing financial protection against unforeseen life, health, property, and liability events. Profits come from underwriting—collecting more in premiums than paid in claims—and investing the 'float'. This cyclical industry benefits from 'hard markets' with strong pricing power and higher interest rates that enhance investment income. AI adoption is improving underwriting through sophisticated data analysis and reducing costs via automation. However, 'soft markets' and low rates create headwinds, while the industry faces elevated claims costs from climate catastrophes, inflation, and rising litigation expenses.
The 57 insurance stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.4%.
In light of this news, share prices of the companies have held steady as they are up 3.5% on average since the latest earnings results.
Hartford (NYSE: HIG)
Recognizable by its iconic stag logo that dates back to 1810, The Hartford (NYSE: HIG) provides property and casualty insurance, group benefits, and investment products to individuals and businesses across the United States.
Hartford reported revenues of $6.99 billion, up 7.7% year on year. This print fell short of analysts’ expectations by 0.9%, but it was still a satisfactory quarter for the company with a beat of analysts’ EPS estimates but a significant miss of analysts’ book value per share estimates.
“The Hartford’s second quarter results were outstanding, with core earnings reaching nearly $1 billion,” said The Hartford’s Chairman and CEO Christopher Swift.
Interestingly, the stock is up 7.9% since reporting and currently trades at $130.93.
Is now the time to buy Hartford? Access our full analysis of the earnings results here, it’s free.
Best Q2: Root (NASDAQ: ROOT)
Pioneering a data-driven approach that rewards good driving habits, Root (NASDAQ: ROOT) is a technology-driven auto insurance company that uses mobile apps to acquire customers and data science to price policies based on individual driving behavior.
Root reported revenues of $382.9 million, up 32.4% year on year, outperforming analysts’ expectations by 7.5%. The business had an incredible quarter with a beat of analysts’ EPS and net premiums earned estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 22.7% since reporting. It currently trades at $95.18.
Is now the time to buy Root? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Equitable Holdings (NYSE: EQH)
Tracing its roots back to 1859 as one of America's oldest financial institutions, Equitable Holdings (NYSE: EQH) provides retirement planning, asset management, and life insurance products through its two main franchises, Equitable and AllianceBernstein.
Equitable Holdings reported revenues of $3.80 billion, up 5.1% year on year, falling short of analysts’ expectations by 4.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Interestingly, the stock is up 3.5% since the results and currently trades at $52.72.
Read our full analysis of Equitable Holdings’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 $589.3 million, up 9.1% year on year. This result missed analysts’ expectations by 8.9%. More broadly, it was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates but a significant miss of analysts’ net premiums earned estimates.
The stock is down 2.2% since reporting and currently trades at $17.06.
Read our full, actionable report on Fidelis Insurance here, it’s free.
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 $1.35 billion, up 12.6% year on year. This number beat analysts’ expectations by 13.8%. It was a very strong quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ net premiums earned estimates.
The stock is up 3.5% since reporting and currently trades at $34.32.
Read our full, actionable report on F&G Annuities & Life 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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