From Nasdaq: 2025-04-21 08:44:00

The finance sector’s first-quarter 2025 earnings are expected to improve by 7.1%, with revenues estimated to rise by 3.4%. Insurance industry results are likely to reflect better pricing, exposure growth, digitalization, and favorable interest rates, despite cat losses weighing on the upside. Four insurers, including BRO, PLMR, AIZ, and PRI, are poised to outperform earnings estimates.

Factors likely to impact Q1 results include boosted premiums from solid retention, exposure growth, and improved pricing. Catastrophes led to rate increases in commercial and personal lines insurance. Insured losses from natural disasters in Q1 exceeded $53 billion, with California wildfires contributing the most. Underwriting profit likely benefited from better pricing and reinsurance arrangements.

Increased travel and low unemployment rates likely improved auto premiums and commercial insurance. Insurers benefitted from a larger investment asset base and higher bond yields, boosting net investment income. Life insurers saw strong sales with a focus on protection products, while technology investments in blockchain, AI, and analytics improved operational efficiencies and reduced costs.

Top potential outperformers this earnings season include Brown & Brown, Palomar Holdings, Assurant, and Primerica. Brown & Brown’s earnings are expected to increase by 14%, while Palomar Holdings and Primerica are expected to see increases of 45.8% and 21.9%, respectively. Assurant’s net investment income benefited from higher yields, while Primerica saw growth in protection products and net investment income.



Read more at Nasdaq:: 4 Insurance Stocks Poised to Surpass Q1 Earnings Expectations