What's in Store for These 3 Insurance Stocks in Q3 Earnings?

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, Axis Capital Holdings Limited AXS, and Everest Group, Ltd. EG.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research