4 Insurance Stocks Poised to Surpass Q1 Earnings Expectations

4 Insurance Stocks Poised to Surpass Q1 Earnings Expectations

The Finance sector is expected to see a 7.1% improvement in first-quarter 2025 earnings, with revenues estimated to rise 3.4%. The insurance industry, part of this sector, is likely to benefit from better pricing, exposure growth, and accelerated digitalization, although catastrophe losses may have tempered these gains.

Using the Zacks Stock Screener, four insurers have been identified as potential outperformers in the first-quarter earnings: Brown & Brown, Inc. (BRO), Palomar Holdings, Inc. (PLMR), Assurant Inc. (AIZ), and Primerica, Inc. (PRI). These companies have a positive Earnings ESP and a favorable Zacks Rank, indicating they are likely to surpass earnings expectations.

Factors Likely to Impact Q1 Results

Several factors are expected to influence the first-quarter results of these insurance stocks:

• Solid retention and exposure growth across business lines, coupled with improved pricing, are likely to have boosted premiums.
• An active catastrophe environment is expected to have accelerated policy renewal rates and led to better pricing.
• The commercial insurance sector saw a 3% composite rate increase, while personal lines composite rates rose 4.9% in the first quarter of 2025.
• Insured losses from natural catastrophes are projected at over $53 billion, with California wildfires accounting for nearly $38 billion of this total.
• Underwriting profit is likely to have benefited from better pricing, reinsurance arrangements, and favorable reserve development.
• Auto premiums may have improved due to increased travel worldwide.
• A low unemployment rate is likely to have aided commercial and group insurance.
• A larger investment asset base and higher bond yields are expected to have boosted net investment income.
• Life insurers’ focus on protection products is likely to have driven solid sales.
• The insurance industry’s increased use of technology is expected to have expedited business operations and curbed costs.

4 Potential Outperformers This Earnings Season

1. Brown & Brown, Inc. (BRO): As a leading insurance brokerage firm, BRO is likely to benefit from organic and inorganic growth across its Brokerage and Retail segments. The Zacks Consensus Estimate for BRO’s first-quarter earnings suggests a 14% increase from the year-ago figure.

2. Palomar Holdings, Inc. (PLMR): Focused on catastrophe insurance for personal and commercial property, PLMR is expected to benefit from new business generated with existing partners and strong premium retention rates. The Zacks Consensus Estimate indicates a 45.8% increase in earnings.

3. Assurant Inc. (AIZ): As a global provider of risk management solutions, AIZ is likely to have seen solid performance in its Global Housing segment and growth in Global Lifestyle. The Zacks Consensus Estimate suggests a 37.2% decrease in earnings, although the company has a positive Earnings ESP.

4. Primerica, Inc. (PRI): As the second-largest issuer of term-life insurance coverage in North America, PRI is expected to benefit from solid sales growth, persistency, and a strong network of life-licensed sales representatives. The Zacks Consensus Estimate indicates a 21.9% increase in earnings.

These four insurance stocks are well-positioned to surpass Q1 earnings expectations, driven by factors such as improved pricing, exposure growth, and technological advancements in the insurance industry.