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.
Aflac, Allstate & Everest Step Up: Who's Ready to Insure a Q1 Beat?
Read MoreHide Full Article
Key Takeaways
Commercial insurance pricing softened again, but U.S. casualty rates stayed firm.
Catastrophe losses were moderate in Q1, easing pressure on underwriting results.
Aflac, Allstate and Everest are all expected to witness significant earnings growth.
The first-quarter 2026 earnings season is in full swing, and attention is now turning to the insurance industry. Several major S&P 500 players, including Marsh and The Hartford, have already posted results reflecting strong year-over-year growth, setting a constructive tone for the sector. With momentum building, the focus now shifts to the next wave of reports from Aflac Incorporated (AFL - Free Report) , The Allstate Corporation (ALL - Free Report) and Everest Group, Ltd. (EG - Free Report) , all due tomorrow. Before diving into their specifics, it’s worth examining the broader industry backdrop shaping investor sentiment.
The Insurance space belongs to the Finance sector (one of the 16 broad Zacks sectors within the Zacks Industry classification), whose overall earnings are projected to jump 27.3% from the year-ago quarter. Revenues are expected to grow 9.7%, as indicated by our latest Earnings Preview.
The Insurance Industry Setup Ahead of Q1 Reports
The first-quarter earnings for insurance companies are expected to reflect uneven results, with profitability increasingly tied to underwriting discipline, cost control and product mix. Global commercial insurance pricing softened, marking the seventh straight quarter of decreases, per the Global Insurance Market Index released by Marsh. Abundant capacity and competition in most product lines are pushing rates lower. However, U.S. casualty line rates continued upward momentum due to claims frequency and severity.
Customer retention remains one of the top priorities for U.S. insurers, alongside rate competitiveness and digital engagement, which is boosting claims experience through fast and transparent claims handling. In Insurtech, capital is flowing more selectively, favoring larger, scalable startups with clear technology use cases. Although rising operating expenses remain a watch point for insurers, efficiency gains from Insurtech integration and automation mitigated some cost pressures.
Encouragingly, Q1 2026 Gallagher Re Natural Catastrophe and Climate Report shows that global natural catastrophe activity and losses in the first quarter were relatively moderate compared with historical norms. Total direct economic losses were estimated at around $58 billion, with approximately $20 billion of that absorbed by insurers and public entities. The first quarter marked the lowest insured loss totals in several years. While there was a noticeable ramp-up in severe convective storm activity late in the period, the overall loss costs remained manageable in the absence of an exceptionally high-cost event.
Insurers are expected to have balanced yield opportunities with liquidity and risk management, avoiding overextension into high-risk assets while capturing higher returns where appropriate. The high-for-long interest rate environment, although off recent peaks, pushed insurers to reinvest in higher-yield fixed income securities, supporting investment income.
With Aflac, Allstate and Everest Group on deck, investors are eager to see whether these macro and industry dynamics can translate into another round of earnings beats.
What’s in Store for AFL, ALL & EG on April 29?
Our proprietary model clearly indicates that a company needs to have the right combination of two key elements — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase 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.
Against the above backdrop, let’s find out how the following three companies are placed ahead of their March-quarter earnings release tomorrow.
Aflac: The company is expected to have benefited from improving trends in its Japan segment. Aflac Japan is projected to deliver 10.9% growth in pre-tax adjusted earnings.The total benefit-to-premium ratio for the segment stands at 62.4, down from 65.8 in the year-ago period. The Zacks Consensus Estimate for pre-tax adjusted earnings from Aflac U.S. indicates 0.3% year-over-year growth.
The Zacks Consensus Estimate for the first-quarter earnings stands at $1.81 per share, which indicates 9% growth from a year ago. Aflac’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed twice, the average surprise being 8.3%. The consensus mark for revenues is pegged at $4.29 billion, signaling a 0.8% decline.
Allstate: This leading P&C insurer’s first-quarter revenues are expected to have been supported by nearly 8% net premiums earned growth. The Zacks Consensus Estimate for net investment income indicates 4.8% year-over-year growth from $854 million. The combined ratio for Property-Liability is pegged at 88.6%, improving from 97.4% a year ago. However, we expect interest expenses to increase 4.4% year over year in the first quarter.
The Zacks Consensus Estimate for the first-quarter earnings and top line is pegged at $7.43 per share and $17.7 billion, respectively, indicating an earnings surge of 110.5% and a revenue increase of 5.4% from the corresponding year-ago quarter’s readings. Allstate’s bottom line beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 54.3%.
Our proven model predicts a likely earnings beat for Allstate this time around as well, as the stock has an Earnings ESP of +0.04% and a Zacks Rank #3.
Everest Group: The Zacks Consensus Estimate for EG’s net investment income indicates 4.5% year-over-year growth, driven by higher fixed maturities, improved income from limited partnerships and stronger returns from alternative investments. The consolidated combined ratio is pegged at 94.2%, a significant improvement from the year-ago level of 102.7%. However, the consensus estimate for premiums earned points to a 0.5% decline year over year.
The Zacks Consensus Estimate for the first-quarter earnings and top line stands at $14.03 per share and $4.41 billion, respectively, indicating an earnings surge of 117.5% and revenue growth of 3.4% from the corresponding year-ago quarter. Everest Group’s earnings beat the Zacks Consensus Estimate in one of the last four quarters and missed thrice, the average surprise being negative 10.8%.
Our proven model predicts a likely earnings beat for EG this time around, as the stock has an Earnings ESP of +0.54% and a Zacks Rank #3.
With all three stocks carrying positive Earnings ESPs and a Zacks Rank #3, investors will be watching closely to see if they can extend the insurance sector’s early earnings momentum.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Aflac, Allstate & Everest Step Up: Who's Ready to Insure a Q1 Beat?
Key Takeaways
The first-quarter 2026 earnings season is in full swing, and attention is now turning to the insurance industry. Several major S&P 500 players, including Marsh and The Hartford, have already posted results reflecting strong year-over-year growth, setting a constructive tone for the sector. With momentum building, the focus now shifts to the next wave of reports from Aflac Incorporated (AFL - Free Report) , The Allstate Corporation (ALL - Free Report) and Everest Group, Ltd. (EG - Free Report) , all due tomorrow. Before diving into their specifics, it’s worth examining the broader industry backdrop shaping investor sentiment.
The Insurance space belongs to the Finance sector (one of the 16 broad Zacks sectors within the Zacks Industry classification), whose overall earnings are projected to jump 27.3% from the year-ago quarter. Revenues are expected to grow 9.7%, as indicated by our latest Earnings Preview.
The Insurance Industry Setup Ahead of Q1 Reports
The first-quarter earnings for insurance companies are expected to reflect uneven results, with profitability increasingly tied to underwriting discipline, cost control and product mix. Global commercial insurance pricing softened, marking the seventh straight quarter of decreases, per the Global Insurance Market Index released by Marsh. Abundant capacity and competition in most product lines are pushing rates lower. However, U.S. casualty line rates continued upward momentum due to claims frequency and severity.
Customer retention remains one of the top priorities for U.S. insurers, alongside rate competitiveness and digital engagement, which is boosting claims experience through fast and transparent claims handling. In Insurtech, capital is flowing more selectively, favoring larger, scalable startups with clear technology use cases. Although rising operating expenses remain a watch point for insurers, efficiency gains from Insurtech integration and automation mitigated some cost pressures.
Encouragingly, Q1 2026 Gallagher Re Natural Catastrophe and Climate Report shows that global natural catastrophe activity and losses in the first quarter were relatively moderate compared with historical norms. Total direct economic losses were estimated at around $58 billion, with approximately $20 billion of that absorbed by insurers and public entities. The first quarter marked the lowest insured loss totals in several years. While there was a noticeable ramp-up in severe convective storm activity late in the period, the overall loss costs remained manageable in the absence of an exceptionally high-cost event.
Insurers are expected to have balanced yield opportunities with liquidity and risk management, avoiding overextension into high-risk assets while capturing higher returns where appropriate. The high-for-long interest rate environment, although off recent peaks, pushed insurers to reinvest in higher-yield fixed income securities, supporting investment income.
With Aflac, Allstate and Everest Group on deck, investors are eager to see whether these macro and industry dynamics can translate into another round of earnings beats.
What’s in Store for AFL, ALL & EG on April 29?
Our proprietary model clearly indicates that a company needs to have the right combination of two key elements — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase 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.
Against the above backdrop, let’s find out how the following three companies are placed ahead of their March-quarter earnings release tomorrow.
Aflac: The company is expected to have benefited from improving trends in its Japan segment. Aflac Japan is projected to deliver 10.9% growth in pre-tax adjusted earnings.The total benefit-to-premium ratio for the segment stands at 62.4, down from 65.8 in the year-ago period. The Zacks Consensus Estimate for pre-tax adjusted earnings from Aflac U.S. indicates 0.3% year-over-year growth.
The Zacks Consensus Estimate for the first-quarter earnings stands at $1.81 per share, which indicates 9% growth from a year ago. Aflac’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed twice, the average surprise being 8.3%. The consensus mark for revenues is pegged at $4.29 billion, signaling a 0.8% decline.
Aflac Incorporated Price and EPS Surprise
Aflac Incorporated price-eps-surprise | Aflac Incorporated Quote
Our proven model predicts a likely earnings beat for Aflac this time around, as the stock has an Earnings ESP of +0.62% and a Zacks Rank #3. (Read More: Can Aflac's Japan Business Help Deliver a Quack-worthy Q1 Beat?)
You can see the complete list of today’s Zacks #1 Rank stocks here.
Allstate: This leading P&C insurer’s first-quarter revenues are expected to have been supported by nearly 8% net premiums earned growth. The Zacks Consensus Estimate for net investment income indicates 4.8% year-over-year growth from $854 million. The combined ratio for Property-Liability is pegged at 88.6%, improving from 97.4% a year ago. However, we expect interest expenses to increase 4.4% year over year in the first quarter.
The Zacks Consensus Estimate for the first-quarter earnings and top line is pegged at $7.43 per share and $17.7 billion, respectively, indicating an earnings surge of 110.5% and a revenue increase of 5.4% from the corresponding year-ago quarter’s readings. Allstate’s bottom line beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 54.3%.
The Allstate Corporation Price and EPS Surprise
The Allstate Corporation price-eps-surprise | The Allstate Corporation Quote
Our proven model predicts a likely earnings beat for Allstate this time around as well, as the stock has an Earnings ESP of +0.04% and a Zacks Rank #3.
Everest Group: The Zacks Consensus Estimate for EG’s net investment income indicates 4.5% year-over-year growth, driven by higher fixed maturities, improved income from limited partnerships and stronger returns from alternative investments. The consolidated combined ratio is pegged at 94.2%, a significant improvement from the year-ago level of 102.7%. However, the consensus estimate for premiums earned points to a 0.5% decline year over year.
The Zacks Consensus Estimate for the first-quarter earnings and top line stands at $14.03 per share and $4.41 billion, respectively, indicating an earnings surge of 117.5% and revenue growth of 3.4% from the corresponding year-ago quarter. Everest Group’s earnings beat the Zacks Consensus Estimate in one of the last four quarters and missed thrice, the average surprise being negative 10.8%.
Everest Group, Ltd. Price and EPS Surprise
Everest Group, Ltd. price-eps-surprise | Everest Group, Ltd. Quote
Our proven model predicts a likely earnings beat for EG this time around, as the stock has an Earnings ESP of +0.54% and a Zacks Rank #3.
With all three stocks carrying positive Earnings ESPs and a Zacks Rank #3, investors will be watching closely to see if they can extend the insurance sector’s early earnings momentum.