Nov. 17 at 5:00 PM
Insurance stocks are set to diverge further as investors reward clearer performance differentiation after Q3 results, according to Morgan Stanley. Analyst Bob Jian Huang said companies showing stronger relative performance should see more durable share-price trends, with profitable growth remaining key in P&C and resilient earnings the focus in life insurance.
Morgan Stanley noted that life-insurance earnings were stronger than stock reactions suggested, with the three main drivers—fees, underwriting, and margin—generally favorable. Fee-related income beat the already high bar set by strong equity markets, while underwriting showed bright spots, including group-benefits strength at Principal and Voya, and positive actuarial impacts at Globe Life and Primerica.
Margin income remains under pressure, especially in annuities, but companies have been proactive in mitigating margin compression, including expanding pension risk-transfer activity.
$PFG $VOYA $GL $LNC $EQH