We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in Store for These 3 Insurance Stocks in Q3 Earnings?
Read MoreHide Full Article
Key Takeaways
PRU, AXS, and EG are expected to post improved Q3 results on Oct 29.
Better pricing, retention, and reinsurance deals are likely to boost underwriting profit.
Higher bond yields, tech investments and strong capital positions are likely to boost third-quarter results.
Continued improved pricing, exposure growth, portfolio streamlining, solid retention, renewals, reinsurance agreements and accelerated digitalization are expected to have enhanced insurance stocks’ September-quarter performance. However, catastrophe losses are likely to have weighed on the upside. Insurers yet to report their third-quarter results on Oct. 29 are Prudential Financial, Inc. (PRU - Free Report) , Axis Capital Holdings Limited (AXS - Free Report) , and Everest Group, Ltd. (EG - Free Report) .
The insurance space is housed within the broader Finance sector (one of the 16 broad Zacks sectors within the Zacks Industry classification). Per the latest Earnings Preview, the total earnings of finance companies for the second quarter are anticipated to rise 23.4% from the prior-year quarter’s figure. These companies’ revenues are anticipated to improve 7.8%.
Factors Likely to Shape Insurers’ Performance in Q3
Better pricing, solid retention, as well as exposure growth across business lines, are likely to have driven premiums. Per the latest Global Insurance Market Index by Marsh, global commercial insurance rates decreased, on average, by 4% in the third quarter of 2025. The third quarter of 2025 marks the fifth consecutive global quarterly decrease after seven years of quarterly increases. According to Marsh’s Global Insurance Market Index, the U.S. composite rate has fallen by 1% in the third quarter of 2025.
Auto premiums are likely to have improved, given increased travel across the world. A low unemployment rate is likely to have aided commercial insurance and group insurance.
According to Aon, global insured losses from natural catastrophes were $114 billion. Per Aon, economic losses from natural catastrophes in the third quarter of 2025 were significantly low, with global economic losses of $34 billion, which is nearly 76% below the 21st-century average, and this marks the lowest third-quarter total in decades. According to Aon, natural catastrophe losses in the third quarter of 2025 reached $12 billion, and this was the lowest figure for the quarter since 2006.
Underwriting profit is likely to have benefited from better pricing, reinsurance arrangements, portfolio repositioning, reinsurance covers and favorable reserve development.
For a fifth straight meeting, the Fed held rates steady at 4.25-4.50%. The rates were held steady so far, as inflation is likely to remain above the Fed's 2% target until next year due to the impact of tariffs.
A larger investment asset base, strong cash flow from operating activities, higher bond yields, and an increase in interest income from fixed-maturity securities are expected to have aided net investment income.
The insurance industry’s increased use of technology like blockchain, artificial intelligence, advanced analytics, telematics, cloud computing and robotic process automation expedites business operations. Insurers continue to invest heavily in technology to improve basis points, scale and efficiencies. These investments are likely to have curbed costs and aided the margins of insurers in the second quarter.
A solid capital position is likely to have aided insurers in strategic mergers and acquisitions to sharpen their competitive edge, expand geographically and diversify their portfolio. Sustained wealth distribution to shareholders via dividend hikes, special dividends and share repurchases instill confidence in the insurers.
Let’s find out how the following insurers are placed before their third-quarter 2025 results on Oct. 29.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Per our proprietary model, the combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Prudential Financial: The U.S. business of PRU is likely to have gained from more favorable underwriting results from Individual Life, Group Insurance and Institutional Retirement Strategies. PGIM is likely to have gained from solid asset management fee growth. Assets under management are expected to have benefited from market appreciation, positive net flows and strong investment performance.
Expenses are likely to have increased because of higher policyholders’ benefits and amortization of deferred policy acquisition costs. The Individual Retirement Strategies business is likely to have benefited from higher net investment income due to growth in indexed variable and fixed annuities, and higher income from non-coupon investments.
PRU’s earnings surpassed estimates in three of the last four quarters while missing in one, the average surprise being 1.14%. This is depicted in the chart below:
Axis Capital Holdings: In the third quarter, the Insurance segment of Axis Capital might have gained from increased new business opportunities, rate increases on renewal and continued strong retentions. New business growth and increased rates across North America and Global Markets are likely to have driven the Reinsurance unit. Technology investments that pave the way for efficient operations are likely to have provided an impetus to its margins.
The Zacks Consensus Estimate for AXS’ third-quarter 2025 earnings is pegged at $2.72 per share, indicating an improvement of 0.3% from the prior-year quarter’s reported figure. Axis Capital has an Earnings ESP of -0.86% and a Zacks Rank of 2.
AXS’ earnings outpaced estimates in each of the trailing four quarters, the average surprise being 13.39%. The same is depicted in the chart below:
Axis Capital Holdings Limited Price and EPS Surprise
Everest Group: Third-quarter results are expected to reflect premium growth, driven by the solid performance of the Reinsurance and Insurance segments. Net investment income is likely to have benefited from higher assets under management, alternative assets and strong returns in private equity investments. Rate increases, exposure growth and traditional risk management capabilities are expected to have improved underwriting profitability in the to-be-reported quarter. (Read more: What's in the Cards for Everest Group This Earnings Season?)
The Zacks Consensus Estimate for EG’s third-quarter 2025 earnings is pegged at $13.39 per share, indicating a decline of 8.4% from the prior-year quarter’s reported figure. The company has an Earnings ESP of -1.53% and a Zacks Rank #3.
EG’s earnings surpassed estimates in two of the last four reported quarters while missing in the other two, the average surprise being 3.36%. This is depicted in the chart below:
Image: Bigstock
What's in Store for These 3 Insurance Stocks in Q3 Earnings?
Key Takeaways
Continued improved pricing, exposure growth, portfolio streamlining, solid retention, renewals, reinsurance agreements and accelerated digitalization are expected to have enhanced insurance stocks’ September-quarter performance. However, catastrophe losses are likely to have weighed on the upside. Insurers yet to report their third-quarter results on Oct. 29 are Prudential Financial, Inc. (PRU - Free Report) , Axis Capital Holdings Limited (AXS - Free Report) , and Everest Group, Ltd. (EG - Free Report) .
The insurance space is housed within the broader Finance sector (one of the 16 broad Zacks sectors within the Zacks Industry classification). Per the latest Earnings Preview, the total earnings of finance companies for the second quarter are anticipated to rise 23.4% from the prior-year quarter’s figure. These companies’ revenues are anticipated to improve 7.8%.
Factors Likely to Shape Insurers’ Performance in Q3
Better pricing, solid retention, as well as exposure growth across business lines, are likely to have driven premiums. Per the latest Global Insurance Market Index by Marsh, global commercial insurance rates decreased, on average, by 4% in the third quarter of 2025. The third quarter of 2025 marks the fifth consecutive global quarterly decrease after seven years of quarterly increases. According to Marsh’s Global Insurance Market Index, the U.S. composite rate has fallen by 1% in the third quarter of 2025.
Auto premiums are likely to have improved, given increased travel across the world. A low unemployment rate is likely to have aided commercial insurance and group insurance.
According to Aon, global insured losses from natural catastrophes were $114 billion. Per Aon, economic losses from natural catastrophes in the third quarter of 2025 were significantly low, with global economic losses of $34 billion, which is nearly 76% below the 21st-century average, and this marks the lowest third-quarter total in decades. According to Aon, natural catastrophe losses in the third quarter of 2025 reached $12 billion, and this was the lowest figure for the quarter since 2006.
Underwriting profit is likely to have benefited from better pricing, reinsurance arrangements, portfolio repositioning, reinsurance covers and favorable reserve development.
For a fifth straight meeting, the Fed held rates steady at 4.25-4.50%. The rates were held steady so far, as inflation is likely to remain above the Fed's 2% target until next year due to the impact of tariffs.
A larger investment asset base, strong cash flow from operating activities, higher bond yields, and an increase in interest income from fixed-maturity securities are expected to have aided net investment income.
The insurance industry’s increased use of technology like blockchain, artificial intelligence, advanced analytics, telematics, cloud computing and robotic process automation expedites business operations. Insurers continue to invest heavily in technology to improve basis points, scale and efficiencies. These investments are likely to have curbed costs and aided the margins of insurers in the second quarter.
A solid capital position is likely to have aided insurers in strategic mergers and acquisitions to sharpen their competitive edge, expand geographically and diversify their portfolio. Sustained wealth distribution to shareholders via dividend hikes, special dividends and share repurchases instill confidence in the insurers.
Let’s find out how the following insurers are placed before their third-quarter 2025 results on Oct. 29.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Per our proprietary model, the combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Prudential Financial: The U.S. business of PRU is likely to have gained from more favorable underwriting results from Individual Life, Group Insurance and Institutional Retirement Strategies. PGIM is likely to have gained from solid asset management fee growth. Assets under management are expected to have benefited from market appreciation, positive net flows and strong investment performance.
Expenses are likely to have increased because of higher policyholders’ benefits and amortization of deferred policy acquisition costs. The Individual Retirement Strategies business is likely to have benefited from higher net investment income due to growth in indexed variable and fixed annuities, and higher income from non-coupon investments.
The Zacks Consensus Estimate for the bottom line is pegged at $3.64, indicating a 4.6% increase from the year-ago quarter’s reported figure. The company has an Earnings ESP of -1.08% and a Zacks Rank #3 at present. (Read more: Is a Beat in the Cards for Prudential Financial This Earnings Season?). You can see the complete list of today’s Zacks #1 Rank stocks here.
PRU’s earnings surpassed estimates in three of the last four quarters while missing in one, the average surprise being 1.14%. This is depicted in the chart below:
Prudential Financial, Inc. Price and EPS Surprise
Prudential Financial, Inc. price-eps-surprise | Prudential Financial, Inc. Quote
Axis Capital Holdings: In the third quarter, the Insurance segment of Axis Capital might have gained from increased new business opportunities, rate increases on renewal and continued strong retentions. New business growth and increased rates across North America and Global Markets are likely to have driven the Reinsurance unit. Technology investments that pave the way for efficient operations are likely to have provided an impetus to its margins.
The Zacks Consensus Estimate for AXS’ third-quarter 2025 earnings is pegged at $2.72 per share, indicating an improvement of 0.3% from the prior-year quarter’s reported figure. Axis Capital has an Earnings ESP of -0.86% and a Zacks Rank of 2.
AXS’ earnings outpaced estimates in each of the trailing four quarters, the average surprise being 13.39%. The same is depicted in the chart below:
Axis Capital Holdings Limited Price and EPS Surprise
Axis Capital Holdings Limited price-eps-surprise | Axis Capital Holdings Limited Quote
Everest Group: Third-quarter results are expected to reflect premium growth, driven by the solid performance of the Reinsurance and Insurance segments. Net investment income is likely to have benefited from higher assets under management, alternative assets and strong returns in private equity investments. Rate increases, exposure growth and traditional risk management capabilities are expected to have improved underwriting profitability in the to-be-reported quarter. (Read more: What's in the Cards for Everest Group This Earnings Season?)
The Zacks Consensus Estimate for EG’s third-quarter 2025 earnings is pegged at $13.39 per share, indicating a decline of 8.4% from the prior-year quarter’s reported figure. The company has an Earnings ESP of -1.53% and a Zacks Rank #3.
EG’s earnings surpassed estimates in two of the last four reported quarters while missing in the other two, the average surprise being 3.36%. This is depicted in the chart below:
Everest Group, Ltd. Price and EPS Surprise
Everest Group, Ltd. price-eps-surprise | Everest Group, Ltd. Quote