As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the insurance industry, including Kemper (NYSE: KMPR) 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 58 insurance stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.1%.

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

Kemper (NYSE: KMPR)

Originally known as Unitrin until rebranding in 2011, Kemper (NYSE: KMPR) is an insurance holding company that provides automobile, homeowners, life, and other insurance products to individuals and businesses across the United States.

Kemper reported revenues of $1.19 billion, up 5.1% year on year. This print fell short of analysts’ expectations by 0.6%. Overall, it was a slower quarter for the company with a significant miss of analysts’ book value per share estimates and a slight miss of analysts’ net premiums earned estimates.

“Kemper delivered another quarter of very strong financial results, led by continued robust profitable growth in our Specialty Auto business, which saw a very strong 92% underlying combined ratio, 14% year-over-year policy growth, and 24% written premium growth,” said President and CEO Joseph P. Lacher, Jr.

Unsurprisingly, the stock is down 2.3% since reporting and currently trades at $63.07.

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

Best Q1: 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 $349.4 million, up 37.1% year on year, outperforming analysts’ expectations by 9.1%. The business had an incredible quarter with an impressive 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 13.7% since reporting. It currently trades at $121.16.

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

Weakest Q1: 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 $3.78 billion, up 4% year on year, falling short of analysts’ expectations by 5.7%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 2% since the results and currently trades at $54.69.

Read our full analysis of Equitable Holdings’s results here.

Assured Guaranty (NYSE: AGO)

Serving as a financial safety net for over $11 trillion in debt service payments since its founding in 2003, Assured Guaranty (NYSE: AGO) provides credit protection products that guarantee scheduled payments on municipal bonds, infrastructure projects, and structured finance obligations.

Assured Guaranty reported revenues of $345 million, up 40.8% year on year. This result surpassed analysts’ expectations by 74.7%. Overall, it was an incredible quarter as it also recorded an impressive beat of analysts’ EPS and net premiums earned estimates.

Assured Guaranty pulled off the biggest analyst estimates beat among its peers. The stock is flat since reporting and currently trades at $84.84.

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

Essent Group (NYSE: ESNT)

Serving as a crucial bridge between homebuyers and the American dream of homeownership, Essent Group (NYSE: ESNT) provides private mortgage insurance and title services that enable lenders to offer home loans with down payments of less than 20%.

Essent Group reported revenues of $317.6 million, up 6.4% year on year. This print beat analysts’ expectations by 2.1%. Zooming out, it was a mixed quarter as it recorded EPS in line with analysts’ estimates.

The stock is up 2% since reporting and currently trades at $59.85.

Read our full, actionable report on Essent Group 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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