Zacks Industry Outlook Highlights Aviva, Primerica, Lincoln National, Voya Financial and Jackson Financial

Chicago, IL - September 22, 2025 - Today, Zacks Equity Research discusses Aviva AVVIY, Primerica PRI, Lincoln National Corp. LNC, Voya Financial VOYA and Jackson Financial JXN. Industry: Life Insurance Link: https://www.zacks.com/commentary/2754336/5-stocks-to-buy-from-the-prospering-life-insurance-industry Redesigning and repricing of products and services to maintain sales and profitability have been driving Zacks Life Insurance industry players. Increased automation is expected to drive premium growth and boost the efficiency of Aviva, Primerica, Lincoln National Corp., Voya Financial and Jackson Financial. In the recent FOMC meeting, the Federal Reserve slashed the interest rate by 25 basis points to 4%-4.25%. The Fed also hinted at two more cuts this year. In such a scenario, life insurers will likely face challenges as they invest a large portion of their premiums to meet contractually guaranteed obligations of policyholders. Also, with accelerated digitalization, expenses are likely to increase. Prudently pricing the products and balancing customers' preferences and claim costs are a challenge. About the Industry The Zacks Life Insurance industry comprises companies that offer life insurance coverage and retirement benefits to individuals and groups. The products include annuities, whole and term life insurance, accidental death insurance, health insurance, Medicare supplements and long-term healthcare policies. Sales benefit from the increasing demand for protection products. The industry also includes companies providing wealth and asset management solutions. With a rise in the number of baby boomers, the demand for retirement benefits is increasing. Economic growth instills confidence. Per a Statista report, the life insurance market is expected to grow, with gross written premiums expected to be $1.34 trillion in 2025. The industry has also been witnessing the accelerated adoption of technology. However, rising mortality or loss cost trends may impact the profitability of insurers. 3 Trends Shaping the Future of the Life Insurance Industry Interest Rate Lowered: After three rate cuts of a total of 150 basis points in 2024, the Federal Reserve again slashed the interest rate by 25 bps this year. The Fed also hinted at two more cuts in 2025, given soft job market and muted economic growth. Life insurers are direct beneficiaries of improved rates as they invest the premiums to meet the contractually guaranteed obligations of policyholders. Thus, muted rates will likely weigh on investment return. Nonetheless, in times of persistently low interest rates, life insurers direct their funds into alternative investments like private equity, hedge funds and real estate. With an improving equity market, lower interest rates could relieve pressure on indexed universal life (UL) and whole life sales, given low unemployment as per the LIMRA report. Per the report, life insurance sales are expected to grow 2%-6% in 2025, with new annualized premium growth across indexed UL, fixed UL, variable UL, term life and whole life. Product Redesigning: Industry players are finding new solutions and ways to improve their sales and profitability. Insurers are refraining from selling long-duration term life insurance. Also, life insurers continue to roll out investment products that provide bundled covers of guaranteed retirement income, life and healthcare to cater to customers preferring policies with "living" benefits more than those with death benefits. Increased awareness about having coverage continues to support the life insurance business. A compelling product portfolio will thus aid sales of life insurers. Also, prudently pricing products and balancing customers' preferences and claim costs will be the key to driving growth. Per a report published in ReporterLinker, global life insurance gross written premium is expected to be $2.5 trillion by 2026. Per Statista's report, gross written premium is expected to show an annual growth rate (CAGR 2025-2029) of 3.54%. Per Deloitte, life premiums are projected to rise 1.5% in 2025 in advanced markets. Solid sales in emerging markets like China, India and Latin America are expected to boost premiums by 5.7% in 2025, per the report. Increased Adoption of Technology: Per Statista, the United States is experiencing a shift toward digital platforms and online sales in life insurance. Carriers have started selling policies online that appeal to the tech-savvy population. These insurers are offering customized coverages leveraging artificial intelligence and machine learning. At the same time, the use of real-time data makes premium calculation easier and reduces risk. Increased automation is expected to drive premium growth and boost efficiency. Moreover, accelerated digitization, as evident from the increased adoption of generative AI, cognitive intelligence and blockchain, should help life insurers curb operational costs and aid margin expansion. Insurers are investing heavily in technological advancements to ensure efficiency and smooth functioning. At the same time, players must shield themselves from falling prey to cyber threats. Zacks Industry Rank Indicates Solid Prospects The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates strong prospects for the near term. The Zacks Life Insurance industry, within the broader Zacks Finance sector, currently carries a Zacks Industry Rank #73, which places it in the top 30% of the 255 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1. The industry's positioning in the top 50% of the Zacks-ranked industries is the result of a positive earnings outlook for the constituent companies in aggregate. Estimates moved up by 1.9% since April 2025. Before we present a few life insurance stocks that you may want to consider for your portfolio, let's take a look at the industry's recent stock-market performance and valuation picture. Industry vs. Sector & S&P 500 The Life Insurance industry has underperformed the Zacks S&P 500 composite and the Finance sector year to date. The stocks in this industry have collectively gained 0.1% compared with the Finance sector's increase of 14.7% and the Zacks S&P 500 composite's increase of 13.8% in the said time frame. Life Insurance Industry's Current Valuation On the basis of trailing 12-month price-to-book (P/B), which is commonly used for valuing insurance stocks, the industry is currently trading at 1.91X compared with the S&P 500's 8.7X and the sector's 4.36X. Over the past five years, the industry has traded as high as 2.11X, as low as 1.01X, and at the median of 1.49X. 5 Life Insurance Stocks to Buy Here, we present five Zacks Rank #2 (Buy) stocks from the industry. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Aviva: Headquartered in London, United Kingdom, Aviva provides various insurance, retirement, and wealth products in the United Kingdom, Ireland, Canada, and internationally. This insurer's solid results across all the business lines bode well for growth. The proposed acquisition of Direct Line will position Aviva as a strong leader in UK Personal Lines, accelerating its capital-light business while generating cost synergies. Earnings growth, coupled with balance sheet strength, enables Aviva to return wealth to shareholders through dividend hikes and share buybacks while also investing in the business. This drives efficiency and growth, both organically and inorganically. The Zacks Consensus Estimate for AVVIY's 2025 and 2026 earnings indicates a year-over-year increase of 23.6% and 13.2%, respectively. The consensus estimate for 2025 and 2026 has moved 7% and 11% higher, respectively, in the past seven days. Primerica: This Duluth, GA-based, second-largest issuer of term-life insurance coverage in North America aims to be a successful senior health business while continuing to enhance its shareholders' value. Strong demand for protection products drives sales growth and policy persistency benefits for this insurer. A strong business model makes Primerica well-poised to cater to the middle market's increased demand for financial security. The Zacks Consensus Estimate for PRI's 2025 and 2026 earnings indicates a year-over-year increase of 8.1% and 8.5% respectively. The consensus estimates for 2025 and 2026 have moved 0.2% and 0.04% upward, respectively, in the past 30 days. PRI delivered a four-quarter average earnings surprise of 7.72%. Lincoln Financial: Headquartered in Radnor, PA, Lincoln National is a diversified life insurance and investment management company. A fast-recovering Group Protection business, a strong fixed annuity business and positive flows in the Retirement Plan Services, coupled with pricing discipline and product introductions, should favor this insurer. The Zacks Consensus Estimate for Lincoln Financial's 2025 and 2026 earnings indicates a year-over-year increase of 5.8% and 3.2% respectively. It has moved 1.5% and 0.4% north in the past 30 days. The expected long-term earnings growth rate is pegged at 9.9%. LNC delivered a four-quarter average earnings surprise of 15.71%. Voya Financial: Based in New York, this retirement, investment, and employee benefits company in the United States is poised to grow, given its focus on high-growth, high-return, capital-light businesses, solid market presence and cost savings. Expansion of its distribution network and achievement of efficiencies through automation are expected to drive Voya Financial's performance. The Zacks Consensus Estimate for Voya Financial's 2025 earnings indicates a year-over-year increase of 26.3%. The expected long-term earnings growth rate is pegged at 14.2%, better than the industry average. It delivered a four-quarter average earnings surprise of 41.18%. Jackson Financial: Headquartered in Lansing, MI, Jackson Financial provides a suite of annuities to retail investors in the United States. Retail Annuity sales are poised to grow on diversified product sales and growing distribution. Per the insurer, over the last three years, Registered Index-Linked Annuity or RILA has grown to contribute more than 30% of its total Retail Annuity sales. LIMRA estimates 2025 industry sales to remain strong, with RILA sales expected to exceed the 2024 figure. Thus, the insurer is poised to grow on the success of RILA, coupled with growth in fixed annuities and institutional sales. It also boasts a high-quality, diversified investment portfolio. JXN targets an 11%-27% increase in capital return to shareholders in 2025. It intends to deploy $700-$800 million through share buybacks and dividend increases. The Zacks Consensus Estimate for Jackson Financial's 2025 and 2026 earnings indicates an 8.8% and 8.6% year-over-year increase, respectively. The consensus estimate for 2025 and 2026 has moved 1.5% and 2% north, respectively, in the past 60 days. The company delivered a four-quarter average earnings surprise of 8.91%. Free: Instant Access to Zacks' Market-Crushing Strategies Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can tap into those powerful strategies - and the high-potential stocks they uncover - free. No strings attached. Get all the details here >> Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/ Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. Free Report: 3 Software Stocks Poised to Skyrocket Software stocks are poised to catapult higher in the coming months (and years) thanks to several factors, especially the explosive growth of AI. Zacks' urgent report reveals 3 top software stocks to own right now. 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 Lincoln National Corporation (LNC) : Free Stock Analysis Report Primerica, Inc. (PRI) : Free Stock Analysis Report Voya Financial, Inc. (VOYA) : Free Stock Analysis Report Aviva PLC (AVVIY) : Free Stock Analysis Report Jackson Financial Inc. (JXN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zacks Industry Outlook Highlights Aviva, Primerica, Lincoln National, Voya Financial and Jackson Financial

Інші новини компанії