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4 Stocks to Watch From a Prospering Life Insurance Industry
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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 (AVVIY - Free Report) , NN Group (NNGRY - Free Report) , Jackson Financial (JXN - Free Report) and Abacus Global Management(ABL - Free Report) . However, with two rate cuts expected this year, 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 coverages 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 a gross written premium 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: In 2024, the Fed cut interest rate three times for a total of 150 basis points after four years. The Fed also hinted at two more cuts in 2025. Life insurers are direct beneficiaries of improved rates as they invest the premiums to meet the contractually guaranteed obligations of policyholders. Thus, rate cuts will likely weigh on the 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. They, thus, know how to navigate the low-rate environment. These insurers are also focused on navigating the challenges faced by their commercial real estate portfolio.
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 coverages 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. 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 #58, which places it in the top 24% 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.
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 outperformed the Zacks S&P 500 composite but underperformed the Finance sector in the past year. The stocks in this industry have collectively gained 13.4% compared with the Finance sector’s increase of 15.1% and the Zacks S&P 500 composite’s increase of 7.7% in the said time frame.
One-Year Price Performance
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 1.81X compared with the S&P 500’s 7.84X and the sector’s 4.05X.
Over the past five years, the industry has traded as high as 2.11X, as low as 0.77X, and at the median of 1.37X.
Abacus Global Management: Headquartered in Orlando, FL, it is an alternative asset manager and market maker in the United States. Abacus Global Management was formerly known as Abacus Life, Inc. and changed its name in February 2025. ABL stays focused on consolidating its position as a leading market maker and global alternative asset manager. The strength of partnerships with carriers and reinsurers remains a key contributor to its performance. Marketing initiatives, international expansion, prudent capital deployment, increased assets under management and expanding institutional relationships bode well for growth. Focusing on innovative technology represents a core and growing part of its business strategy.
ABL estimates 2025 adjusted net income to be between $70 million and $78 million, up 51% to 68% from 2024.
The Zacks Consensus Estimate for ABL’s 2025 and 2026 earnings indicates a year-over-year increase of 16.7% and 21.7%, respectively. The consensus estimate for 2025 has moved 2 cents higher in the past seven days. ABL delivered a four-quarter average earnings surprise of 34.80%.
Price and Consensus: ABL
Aviva: Headquartered in London, United Kingdom, Aviva provides various insurance, retirement, and wealth products in the United Kingdom, Ireland, Canada, and internationally. Its 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 in 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 8.1% and 10.5%, respectively. The consensus estimate for 2025 and 2026 has moved up 3 cents each in the past 30 days.
Price and Consensus: AVVIY
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 via share buyback and dividend increase.
The Zacks Consensus Estimate for Jackson Financial’s 2025 and 2026 earnings indicates an 11% and 9.5% year-over-year increase, respectively. The consensus estimate for 2025 and 2026 has moved 0.3% and 1.2% north, respectively, in the past 30 days. The company delivered a four-quarter average earnings surprise of 8.91%.
Price and Consensus: JXN
NN Group: Headquartered in the Hague, the Netherlands, NN Group is a financial services company that engages in the provision of life and non-life insurance products in the Netherlands and internationally. Continued strong sales and margin improvements in Europe as well as higher defined benefit sales and pension buyouts in Netherlands Life should drive this insurer. Looking to be an industry leader, this insurer has been focused on enhancing its shareholders' value through dividend hikes and buybacks.
The Zacks Consensus Estimate for NNGRY’s 2025 and 2026 earnings indicates a year-over-year increase of 25.5% and 2.6%, respectively. The expected long-term earnings growth rate is pegged at 9.9%. The consensus estimate for 2025 has moved 2.7% and 2.6% north, respectively, in the past 30 days.
Price and Consensus: NNGRY
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4 Stocks to Watch From a 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 (AVVIY - Free Report) , NN Group (NNGRY - Free Report) , Jackson Financial (JXN - Free Report) and Abacus Global Management (ABL - Free Report) . However, with two rate cuts expected this year, 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 coverages 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 a gross written premium 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: In 2024, the Fed cut interest rate three times for a total of 150 basis points after four years. The Fed also hinted at two more cuts in 2025. Life insurers are direct beneficiaries of improved rates as they invest the premiums to meet the contractually guaranteed obligations of policyholders. Thus, rate cuts will likely weigh on the 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. They, thus, know how to navigate the low-rate environment. These insurers are also focused on navigating the challenges faced by their commercial real estate portfolio.
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 coverages 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. 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 #58, which places it in the top 24% 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.
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 outperformed the Zacks S&P 500 composite but underperformed the Finance sector in the past year. The stocks in this industry have collectively gained 13.4% compared with the Finance sector’s increase of 15.1% and the Zacks S&P 500 composite’s increase of 7.7% in the said time frame.
One-Year Price Performance

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 1.81X compared with the S&P 500’s 7.84X and the sector’s 4.05X.
Over the past five years, the industry has traded as high as 2.11X, as low as 0.77X, and at the median of 1.37X.
Price-to-Book (P/B) Ratio (TTM)
Price-to-Book (P/B) Ratio (TTM)

4 Life Insurance Stocks to Add to Your Portfolio
Here, we present four stocks with a Zacks Rank #2 (Buy) each from the industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abacus Global Management: Headquartered in Orlando, FL, it is an alternative asset manager and market maker in the United States. Abacus Global Management was formerly known as Abacus Life, Inc. and changed its name in February 2025. ABL stays focused on consolidating its position as a leading market maker and global alternative asset manager. The strength of partnerships with carriers and reinsurers remains a key contributor to its performance. Marketing initiatives, international expansion, prudent capital deployment, increased assets under management and expanding institutional relationships bode well for growth. Focusing on innovative technology represents a core and growing part of its business strategy.
ABL estimates 2025 adjusted net income to be between $70 million and $78 million, up 51% to 68% from 2024.
The Zacks Consensus Estimate for ABL’s 2025 and 2026 earnings indicates a year-over-year increase of 16.7% and 21.7%, respectively. The consensus estimate for 2025 has moved 2 cents higher in the past seven days. ABL delivered a four-quarter average earnings surprise of 34.80%.
Price and Consensus: ABL
Aviva: Headquartered in London, United Kingdom, Aviva provides various insurance, retirement, and wealth products in the United Kingdom, Ireland, Canada, and internationally. Its 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 in 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 8.1% and 10.5%, respectively. The consensus estimate for 2025 and 2026 has moved up 3 cents each in the past 30 days.
Price and Consensus: AVVIY
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 via share buyback and dividend increase.
The Zacks Consensus Estimate for Jackson Financial’s 2025 and 2026 earnings indicates an 11% and 9.5% year-over-year increase, respectively. The consensus estimate for 2025 and 2026 has moved 0.3% and 1.2% north, respectively, in the past 30 days. The company delivered a four-quarter average earnings surprise of 8.91%.
Price and Consensus: JXN
NN Group: Headquartered in the Hague, the Netherlands, NN Group is a financial services company that engages in the provision of life and non-life insurance products in the Netherlands and internationally. Continued strong sales and margin improvements in Europe as well as higher defined benefit sales and pension buyouts in Netherlands Life should drive this insurer.
Looking to be an industry leader, this insurer has been focused on enhancing its shareholders' value through dividend hikes and buybacks.
The Zacks Consensus Estimate for NNGRY’s 2025 and 2026 earnings indicates a year-over-year increase of 25.5% and 2.6%, respectively. The expected long-term earnings growth rate is pegged at 9.9%. The consensus estimate for 2025 has moved 2.7% and 2.6% north, respectively, in the past 30 days.
Price and Consensus: NNGRY
