Life Insurance Q4 Results: Corebridge Financial (NYSE:CRBG) Leads the Industry

Review of Life Insurance Stocks: Q4 Performance Highlights

As we reflect on the fourth quarter earnings of life insurance companies, we take a closer look at the standout winners and laggards, including Corebridge Financial (NYSE:CRBG) and its industry counterparts.

Industry Overview

Life insurers generate revenue by collecting premiums from policyholders, promising future payouts such as death benefits or retirement income. The sector’s performance is closely tied to interest rates—higher rates enable insurers to earn better returns on their fixed-income investments, while lower rates can dampen profitability. Demographic trends, particularly an aging population, are fueling demand for retirement-focused products. At the same time, advancements in artificial intelligence and data analytics are enhancing underwriting precision and streamlining operations. However, the industry faces stiff competition from nimble insurtech firms that are reshaping traditional distribution channels.

Q4 Earnings Summary

Among the 13 life insurance stocks tracked, the group collectively delivered revenue that surpassed analyst forecasts by 3.7% in Q4. Despite this, share prices have struggled, with the group’s average stock price declining 5.6% since the latest earnings announcements.

Top Performer: Corebridge Financial (NYSE:CRBG)

Corebridge Financial, which separated from AIG in 2022 to concentrate on the expanding retirement market, offers a range of retirement solutions, annuities, life insurance, and institutional risk management products across the U.S.

In the fourth quarter, Corebridge Financial posted revenue of $6.34 billion—a 35.7% increase year-over-year—beating analyst expectations by a remarkable 47.3%. The company not only exceeded revenue projections but also outperformed on earnings per share.

Despite delivering the largest earnings beat among its peers, investor expectations may have been even higher than Wall Street’s published estimates. As a result, the stock has dropped 11.7% since the report and is currently trading at $27.54.

F&G Annuities & Life (NYSE:FG)

Established in 1959, F&G Annuities & Life serves around 677,000 policyholders, offering fixed annuities, life insurance, and pension risk transfer solutions to both retail and institutional clients.

For Q4, the company reported $1.78 billion in revenue, an 11.7% year-over-year increase and a 15% beat over analyst estimates. While F&G outperformed its peers on revenue, it fell short on both earnings per share and book value per share, resulting in a slower quarter overall.

Despite a relatively solid performance, the market reacted negatively, sending the stock down 18.3% since the earnings release. It now trades at $22.62.

Weakest Performer: Unum Group (NYSE:UNM)

With origins dating back to 1848, Unum Group specializes in workplace financial protection, offering products such as disability, life, accident, critical illness, dental, and vision insurance, primarily through employer partnerships.

Unum Group’s Q4 revenue was $3.25 billion, unchanged from the previous year and 1.1% below analyst expectations. The company also missed significantly on both book value per share and earnings per share, making for a disappointing quarter.

Following the results, Unum’s stock has declined 4.5% and is currently priced at $72.24.

Primerica (NYSE:PRI)

Primerica operates with over 140,000 licensed representatives working as independent contractors, providing term life insurance, investment products, and financial services to middle-income families in the U.S. and Canada.

In Q4, Primerica reported $853.5 million in revenue, an 8% increase from the prior year and a slight beat of 0.8% over analyst estimates. The company also exceeded expectations for book value per share and narrowly surpassed revenue projections.

The stock price has remained steady since the earnings release and is currently at $252.84.

Prudential (NYSE:PRU)

Known for its Rock of Gibraltar logo, Prudential Financial has been a symbol of reliability since 1896. The company offers life insurance, annuities, retirement solutions, investment management, and other financial services to clients worldwide.

Prudential’s Q4 revenue reached $14.52 billion, up 11.6% year-over-year and in line with analyst expectations. However, the company missed significantly on both book value per share and earnings per share, indicating a slower quarter overall.

Since the earnings announcement, Prudential’s stock has fallen 5.7% and is now trading at $101.04.

Market Overview

Following the Federal Reserve’s rate hikes in 2022 and 2023, inflation has moderated from its post-pandemic highs and is now approaching the Fed’s 2% target. These higher rates, which helped curb inflation, did not slow the economy enough to trigger a recession, resulting in a “soft landing.” Combined with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), the stock market has performed strongly in 2024. Donald Trump’s win in the U.S. Presidential Election in early November further boosted major indices to record highs. Nevertheless, ongoing debates about economic strength, tariffs, and potential corporate tax changes create uncertainty as we look ahead to 2025.

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