Dj Vp Young Surrenders 6934 Of F&G Annuities & Life Inc >Fg

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Aflac and the best and worst performers in the life insurance industry.

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.

Best Q3: Aflac

Known for its iconic duck mascot that has quacked "Aflac!" in commercials since 2000, Aflac 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. This print fell short of analysts’ expectations by 0.9%, but it was still a very strong quarter for the company with an impressive beat of analysts’ book value per share estimates and a beat of analysts’ EPS estimates.

Commenting on the company's results, Aflac Incorporated Chairman and Chief Executive Officer Daniel P. Amos stated: "Aflac delivered very solid earnings for the quarter and the first nine months. These results reflect our focused efforts to execute on our strategy of creating long-term value for shareholders.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $109.84.

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

F&G Annuities & Life

Founded in 1959 and serving approximately 677,000 policyholders who rely on its financial protection products, F&G Annuities & Life 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, outperforming analysts’ expectations by 20.8%. The business had a very strong quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ net premiums earned estimates.

The market seems happy with the results as the stock is up 5.8% since reporting. It currently trades at $31.61.

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

Weakest Q3: Brighthouse Financial

Spun off from MetLife in 2017 to focus specifically on retail financial products, Brighthouse Financial 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 $65.26.

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

Prudential

Recognized by its iconic Rock of Gibraltar logo symbolizing strength and stability since 1896, Prudential Financial provides life insurance, annuities, retirement solutions, investment management, and other financial services to individual and institutional customers globally.

Prudential reported revenues of $16.24 billion, down 16.7% year on year. This result topped analysts’ expectations by 14.4%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ net premiums earned estimates and a solid beat of analysts’ revenue estimates.

Prudential had the slowest revenue growth among its peers. The stock is up 5.7% since reporting and currently trades at $106.99.

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

Corebridge Financial

Spun off from insurance giant AIG in 2022 to focus on the growing retirement market, Corebridge Financial provides retirement solutions, annuities, life insurance, and institutional risk management products in the United States.

Corebridge Financial reported revenues of $5.63 billion, up 34% year on year. This print surpassed analysts’ expectations by 49.7%. Taking a step back, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates.

Corebridge Financial achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 7.9% since reporting and currently trades at $28.51.

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

Looking back on life insurance stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Principal Financial Group 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

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

Known for its iconic duck mascot that has quacked "Aflac!" in commercials since 2000, Aflac 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

Spun off from MetLife in 2017 to focus specifically on retail financial products, Brighthouse Financial 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

With a sales force of over 140,000 licensed representatives operating on an independent contractor model, Primerica 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

Founded in 1959 and serving approximately 677,000 policyholders who rely on its financial protection products, F&G Annuities & Life 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.

What Happened?

Shares of insurance solutions provider F&G Annuities & Life jumped 2.6% in the afternoon session after comments from a key Federal Reserve official hinted at potential interest rate cuts in the near future. New York Federal Reserve President John Williams stated he sees "room for a further adjustment in the near term" to U.S. monetary policy, signaling to investors that a rate cut could be forthcoming. Speaking at a conference, Williams noted that policy is currently "modestly restrictive" and could be moved closer to a neutral stance. The market reacted swiftly to the news, as lower interest rates have been a primary driver of stock market gains. Following the remarks, the probability of a 25-basis-point rate cut rose significantly, according to CME's FedWatch tool. For financial companies, lower rates can increase the value of their large bond portfolios and stimulate broader economic activity.

The shares closed the day at $31.27, up 1.8% from previous close.

Is now the time to buy F&G Annuities & Life? Access our full analysis report here.

What Is The Market Telling Us

F&G Annuities & Life’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

F&G Annuities & Life is down 24% since the beginning of the year, and at $31.27 per share, it is trading 35.9% below its 52-week high of $48.76 from December 2024. Investors who bought $1,000 worth of F&G Annuities & Life’s shares at the IPO in November 2022 would now be looking at an investment worth $1,867.