Insurance stocks are quietly outperforming, delivering steady gains as volatility rattles much of the broader market. Nestled within the broader financial sector, the group is flexing its muscles. Topics Memberships This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. Insuran ...

Core Viewpoint - Insurance stocks are showing resilience and outperforming the broader market, gaining 6% over the past three months as volatility affects other sectors [1]. Group 1: Performance of Insurance Stocks - The iShares U.S. Insurance exchange-traded fund has increased by 6% in the last three months, indicating strong performance amidst market turbulence [1]. - Insurance stocks are characterized as "boring" but are proving to be a stable investment option during volatile market conditions [1]. Group 2: Market Context - The broader financial sector is experiencing significant volatility, yet insurance stocks are managing to deliver steady gains [1]. - The performance of insurance stocks suggests a potential shift in investor preference towards more stable and less volatile sectors during uncertain market times [1].

Core Insights - The article emphasizes the importance of securing affordable and comprehensive auto insurance for teen drivers due to their higher risk of accidents, which leads to elevated premiums [1][2]. Group 1: Insurance Providers Analysis - The Hartford is rated the best for teen drivers with a score of 5.0 stars, offering budget-friendly pricing and numerous discounts, including a mobile app rated 4.7 out of 5 [3][7][27]. - American Family follows closely with a score of 4.9 stars, providing solid coverage options and the second-lowest rates at $239 per month, along with discounts for good students and generational discounts [8][12][27]. - Farmers is rated 4.4 stars, offering reasonable pricing and various discounts, with an average cost of $239 per month, but has limited availability in the U.S. [10][12][27]. - Safeco, rated 4.3 stars, provides discounts for new teen drivers and has an average cost of $315 per month, though it does not offer a discount for driver education courses [16][18][20][27]. - Travelers, also rated 4.3 stars, offers competitive discounts and customizable coverage, with an average cost of $299 per month [21][26][27]. Group 2: Discounts and Coverage Options - Common discounts for teen drivers include good student discounts, driver education discounts, and student away discounts, which can significantly lower premiums [28][30][45]. - Additional discounts vary by insurer, with options like youthful driver discounts and shared family car discounts available from Farmers and American Family [30][28]. - Recommended coverage for teen drivers includes full coverage policies with higher liability limits, collision, and comprehensive coverage to protect against various risks [33][34][40]. Group 3: Methodology and Evaluation - The evaluation of the best auto insurance companies for teen drivers was based on factors such as pricing, teen-specific discounts, claims performance, and digital experience [46][48]. - The scoring system weighted teen rates at 40%, teen-focused discounts at 35%, protective add-on coverage at 15%, claims handling performance at 5%, and digital experience at 5% [48][49][50].

Core Insights - Unum Group's fourth-quarter 2025 operating net income of $1.92 per share missed the Zacks Consensus Estimate by 9% and decreased 5.4% year over year [2] - The company's total operating revenues were $3.2 billion, nearly flat year over year, and missed the Zacks Consensus Estimate by 1.1% [3] Operational Update - Premiums increased by 2% year over year to $2.7 billion, matching estimates, while total benefits and expenses rose 8% year over year to $3 billion, primarily due to higher policy benefits and commissions [3] - The benefit ratio, excluding reserve assumption updates, was 77.9%, deteriorating by 580 basis points due to unfavorable experiences in group long-term disability products [6][9] Quarterly Segment Update - Unum U.S. reported premium income of $1.7 billion, up 1.6% year over year, but adjusted operating income declined 13.1% to $289.7 million, missing estimates [4] - Unum International's premium income increased by 17.1% year over year to $283.9 million, but adjusted operating income fell by 11.7% to $37.6 million [5] Full-Year Highlights - For the full year, operating net income was $8.13 per share, missing the Zacks Consensus Estimate of $8.31, while revenues increased by 2% to $13.2 billion, in line with estimates [12] Capital Management - As of December 31, 2025, the weighted average risk-based capital ratio for Unum Group's traditional U.S. insurance companies was approximately 440%, with holding company liquidity at $2.3 billion [13] - Book value per share grew by 9.3% year over year to $67.11, and the company repurchased shares worth $1 billion [13] 2026 Outlook - Premium growth is expected to be between 4% and 7%, with adjusted operating income per share projected to be between $8.60 and $8.90, indicating growth of about 8% to 12% [14]

Financial Data and Key Metrics Changes - CNO Financial Group achieved an operating return on equity of 11.4% for 2025, an improvement from 10% in 2024, and is on track to reach a target of 12% by 2027 [14][19] - Operating earnings per diluted share increased by 11% to $4.40, with a full-year operating earnings per share of $4.02, exceeding the high end of original guidance [5][14] - The company returned $386 million to shareholders, marking an 11% increase over 2024, and raised its quarterly common stock dividend for the 13th consecutive year [6][24] Business Line Data and Key Metrics Changes - The consumer division reported a record total new annualized premium (NAP) growth of 15%, with life NAP up 10% and Medicare supplement NAP up 49% for the year [8][9] - The worksite division also achieved record insurance sales, up 15% for the full year, with life insurance sales increasing by 36% [11][12] - Overall, the company experienced its 14th consecutive quarter of sales growth and 12th consecutive quarter of growth in producing agent count [4][8] Market Data and Key Metrics Changes - Total health NAP increased by 22%, marking 14 consecutive quarters of growth, while Medicare Advantage policies sold decreased by 3% for the year [9][10] - The company holds over $18 billion in client assets, up 11% from 2024, reflecting strong growth in brokerage and advisory channels [10][11] - The investment portfolio remains high quality, with 97% rated investment grade and an average rating of single A [18] Company Strategy and Development Direction - CNO Financial Group focuses on the underserved middle-income market, leveraging a last-mile captive agent distribution model as a competitive advantage [5][6] - The company is investing in technology modernization with an expected investment of approximately $170 million over three years, with $20 million deployed in 2025 and $75 million expected in 2026 [22] - The strategic exit from the fee services business within the worksite division is progressing on schedule, expected to be largely complete in the first half of 2026 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the lack of visibility in the operating environment due to economic factors such as layoffs and job numbers, which could impact consumer behavior [28][31] - Despite potential headwinds, the company remains optimistic about the demand for Medicare products, with 11,000 Americans turning 65 each day [10][32] - The outlook for 2026 includes expected operating earnings per share between $4.25 and $4.45, reflecting an 8% increase at the midpoint from 2025 results [20][22] Other Important Information - The effective tax rate on operating income was 20.6% for the year, below the guidance of 22%-22.5%, due to tax strategies implemented in the fourth quarter [14][15] - The consolidated risk-based capital ratio was 380%, within the target range of 360%-390%, providing flexibility for growth and capital deployment [19] Q&A Session Summary Question: Earnings emergence and target returns - Management indicated that the time to hit target returns varies by product, but confidence remains in meeting ROE targets due to strong sales momentum [26][27] Question: Environment impact on recruiting and agent count growth - Management expects to grow producing agent count in 2026, emphasizing productivity over sheer numbers, while acknowledging economic pressures on discretionary purchases [28][30] Question: Sustainability of growth levels - Management believes that while Medicare Advantage sales may decline, Medicare supplement sales will continue to rise due to demographic trends [39][40] Question: Impact of Medicare Advantage distribution fees - Management has reflected expected pressures in Medicare Advantage in their projections, focusing more on Medicare supplement products [42][43] Question: Capital deployment strategy - Management plans to return excess capital to shareholders through share repurchases while being measured in capital deployment [46][47] Question: Investment portfolio exposure to software - The company has a small exposure to software in its investment portfolio, with a focus on mission-critical software [69][70]

Financial Data and Key Metrics Changes - CNO Financial Group achieved an operating return on equity of 11.4%, an improvement from 10% in 2024, and is on track to reach a target of 12% by 2027 [13][19] - Operating earnings per diluted share increased to $4.40, reflecting an 11% growth, with full-year operating earnings per share exceeding guidance at $4.02 [5][13] - The company returned $386 million to shareholders, marking an 11% increase over 2024, and raised its quarterly common stock dividend for the 13th consecutive year [7][23] Business Line Data and Key Metrics Changes - The consumer division reported a record total new annualized premium (NAP) growth of 15%, with life NAP up 10% and Medicare Supplement NAP up 49% for the year [8][9] - The worksite division also saw record insurance sales, up 15% for the full year, with life insurance sales increasing by 36% [11][12] - Overall, the company experienced its 14th consecutive quarter of sales growth across both divisions [4][11] Market Data and Key Metrics Changes - Total health NAP increased by 22%, marking 14 consecutive quarters of growth, while Medicare Advantage policies sold decreased by 3% for the year [9][10] - The company holds over $18 billion in client assets, reflecting an 11% increase from 2024, with brokerage and advisory client assets up 24% [10][11] Company Strategy and Development Direction - CNO Financial Group focuses on the underserved middle-income market, leveraging a last-mile captive agent distribution model as a competitive advantage [5][8] - The company is investing in technology modernization with a planned investment of approximately $170 million over three years, with $20 million deployed in 2025 and $75 million expected in 2026 [21][22] - The strategic exit from the fee services business within the worksite division is progressing on schedule, expected to be completed in the first half of 2026 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the lack of visibility in the economic environment, citing potential challenges from layoffs and job market conditions affecting consumer behavior [30][31] - Despite economic pressures, the company remains optimistic about the demand for Medicare products, with 11,000 Americans turning 65 daily, presenting ongoing opportunities [10][32] - The company anticipates continued growth in producing agent count and productivity, emphasizing the importance of agent productivity over mere count [28][29] Other Important Information - The effective tax rate on operating income was 20.6%, below the guidance range, due to tax strategies implemented in the fourth quarter [14] - The company ended the year with a consolidated risk-based capital ratio of 380%, within the target range of 360%-390% [17][18] Q&A Session Summary Question: Earnings emergence and target returns - Management indicated that the time to hit target returns varies by product, but confidence remains high due to strong sales trends [25][26] Question: Environment outlook and agent count growth - Management expects to grow producing agent count in 2026, emphasizing productivity as the primary focus [28][29] Question: Sustainability of growth levels - Management acknowledged potential headwinds but remains comfortable with guidance, expecting continued growth in Medicare Supplement sales [40][42] Question: Impact of Medicare Advantage distribution fees - Management reflected expectations of pressure on Medicare Advantage, focusing more on Medicare Supplement [44] Question: Capital deployment strategy - Management plans to return excess capital to shareholders through share repurchases while being measured in capital deployment [47][48] Question: Investment portfolio exposure to software - Management reported a small exposure to software in the investment portfolio, with a focus on mission-critical software [72][73] Question: Dynamics of turning 65 and product positioning - Management expects the number of individuals turning 65 to remain stable until around 2030, presenting ongoing opportunities for the company [79][81]

Fourth Quarter 2025 Financial and operating results for the period ended December 31, 2025 February 5, 2026 Unless otherwise specified, comparisons in this presentation are between 4Q24 and 4Q25. 1 IMPORTANT LEGAL INFORMATION Forward-Looking Statements Certain statements made in this presentation should be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These include statements about future results of operations and capital plans. We caution investor ...

Core Insights - Manulife Financial Corporation is considered one of the most undervalued Canadian stocks by hedge funds, with Barclays raising its price target to C$52 from C$49 while maintaining an Equal Weight rating [1] - The company reported a 16% year-over-year increase in EPS and a core ROE of 18.1% in Q3 2025, driven by record core earnings in its Asia, Canada, and Global WAM segments [2] - Manulife announced a 50:50 joint venture with Mahindra & Mahindra to enter the Indian life insurance market, leveraging local distribution and global expertise [2] Financial Performance - The Asia division achieved a notable 29% increase in core earnings, contributing significantly to overall performance [2] - Despite strong earnings, the Global WAM segment experienced $6.2 billion in net outflows, and the US segment saw a 20% decrease in core earnings due to unfavorable life insurance claims [3] Market Outlook - Barclays expressed a cautiously optimistic view on life insurers, highlighting that capital strength, cash flow, and consolidation are mitigating challenges such as spread compression and technology expenditures [1] - The company anticipates potential volatility in the Hong Kong market and expects a $25 million quarterly impact from regulatory changes to the Mandatory Provident Fund [3] Company Overview - Manulife Financial Corporation provides financial products and services internationally, operating through Wealth & Asset Management Businesses, Insurance & Annuity Products, and Corporate & Other segments [4]

Core Insights - Assurant, Inc. (AIZ) is anticipated to show improvements in both revenue and earnings for the fourth quarter of 2025, with results expected to be reported on February 10 [1][9] - The Zacks Consensus Estimate for AIZ's fourth-quarter revenues is $3.28 billion, reflecting a 4.7% increase year-over-year [1] - The consensus estimate for earnings is $5.55 per share, indicating a 15.8% year-over-year increase, with a 5.5% upward revision in the past 30 days [2] Revenue and Earnings Estimates - The expected revenue for the fourth quarter is $3.28 billion, with a year-over-year growth of 4.7% [1] - The estimated earnings per share for the fourth quarter is $5.55, which represents a 15.8% increase compared to the previous year [2] Earnings Prediction Model - The earnings prediction model indicates a likely earnings beat for Assurant, supported by a positive Earnings ESP of +13.61% and a Zacks Rank of 3 (Hold) [3][4] - The Most Accurate Estimate stands at $6.31, which is higher than the Zacks Consensus Estimate of $5.55 [4] Factors Influencing Q4 Results - Strong performance in the Global Housing segment and growth in Global Lifestyle are expected to positively impact fourth-quarter results [5][9] - Net earned premiums are projected to increase by 3.8% to $2.6 billion, while fees and other income are expected to rise by 6.1% to $465.4 million [6] Segment Performance - The Global Housing segment is expected to generate revenues of $734 million, reflecting a 7.1% increase year-over-year, with actual estimates at $698.6 million [8] - The Global Lifestyle segment is projected to achieve revenues of $2.5 billion, indicating a 2.7% growth from the previous year [10] Investment Income and Expenses - Net investment income is estimated at $129.3 million, driven by higher assets and yields in fixed maturity securities, despite some offsetting factors [7] - Total expenses are expected to rise to $2.8 billion due to increased underwriting and administrative costs [11]

Financial Data and Key Metrics Changes - For the full year 2025, adjusted EPS was $8.13, down year-over-year and below expectations due to higher than expected benefits experience [5][16] - Core operations premium grew nearly 4.5%, with Colonial Life at 3.1% and International at 10% [7][14] - Adjusted ROE for core operations was approximately 20%, reflecting durable earnings power despite margin volatility [16][18] Business Line Data and Key Metrics Changes - In Unum US, adjusted operating income decreased 13.1% in Q4 to $289.7 million, and full year adjusted operating income decreased 11.6% to $1.3 billion [18] - Group Disability's adjusted operating income was $102.3 million in Q4, down 22.8% year-over-year, with a benefit ratio of 64.2% in Q4 and 62.4% for the full year [19] - Colonial Life's adjusted operating income declined 7.2% in Q4 to $113.9 million, while full year sales increased 5.3% to $560.3 million [22][23] Market Data and Key Metrics Changes - International segment saw a 10% increase in full year premium to $1.1 billion, with fourth quarter premiums growing 11.5% [22] - Persistency in US Group was strong at 90.2%, contributing to premium growth [14] - The corporate segment produced a loss of $51.1 million in Q4, with a full year loss of $171.6 million [24] Company Strategy and Development Direction - The company is focused on reducing legacy exposures and enhancing its employee benefits franchise, with a strong emphasis on digital capabilities [12][10] - Plans for 2026 include organic growth, continued investment in technology, and a target of 4%-7% premium growth [13][34] - The strategy includes a disciplined approach to pricing and risk management, aiming for a stable benefit ratio in Group Disability [33][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying claims performance and the sustainability of the business model, despite some quarterly volatility [52][55] - The outlook for 2026 anticipates adjusted EPS growth of 8%-12%, driven by improved top-line growth and stable margins [33][58] - The company aims to maintain robust capital levels and return approximately 100% of free cash flow to shareholders [40][41] Other Important Information - The company completed two small acquisitions in 2025 and increased its dividend by 10% [10] - Significant progress was made in addressing the closed block, with a reduction of over $4 billion in long-term care reserves [11][26] - A change in reporting will exclude Closed Block earnings from Adjusted Operating Earnings starting in Q1 2026, focusing on core business performance [27][30] Q&A Session Summary Question: Drivers of the group's disability loss ratio and outlook for 2026 - Management discussed the favorable market conditions and pricing discipline, expressing confidence in maintaining strong loss ratios [48][49] Question: 2026 EPS outlook on an apples-to-apples basis - Management indicated expectations for higher top-line growth and consistent benefit ratios, supporting an 8%-12% EPS growth rate [56][58] Question: Competition in the market and pricing dynamics - Management acknowledged competitive pressures but emphasized their pricing discipline and strong market position [80]