We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's How Insurance ETFs Are Placed Post Q3 Earnings
Read MoreHide Full Article
The insurance industry saw some strong earnings reports as some of the prominent players surpassed estimates either for earnings or revenues, or both. This led to a rally in insurance ETFs. SPDR S&P Insurance ETF (KIE - Free Report) , iShares U.S. Insurance ETF (IAK - Free Report) and Invesco KBW Property & Casualty Insurance ETF (KBWP - Free Report) are up 5.3%, 4.2% and 7.5%, respectively, over the past month.
Insurance Earnings in Focus
The second-largest U.S. life insurer Prudential Financial (PRU - Free Report) reported better-than-expected results. Earnings per share of $3.48 outpaced the Zacks Consensus Estimate by a penny but decreased 3.8% from the year-ago earnings. Revenues surged 94% year over year to $19.48 billion and edged past the consensus mark of $14.57 billion.
Chubb Corp. (CB - Free Report) , one of the leading property and casualty insurers, surpassed the Zacks Consensus Estimate for earnings per share by 79 cents but lagged the revenue estimate by $239 million. Another property and casualty insurer. Allstate ALL posted earnings per share of $3.91, surpassing the Zacks Consensus Estimate of $2.20. The bottom line increased nearly five-fold year over year. Revenues grew 12.3% year over year to $16.38 billion, well above the consensus mark of $16.24 billion.
Earnings per share of $2.16 reported by Aflac (AFL - Free Report) , a seller of supplemental health insurance, trumped the Zacks Consensus Estimate by 46 cents and improved 17.4% from the year-ago earnings. Revenues declined 42% year over year to $2.95 billion and lagged the consensus mark of $4.65 billion (see: all the Financial ETFs here).
Personal property and casualty insurer Travelers (TRV - Free Report) posted earnings per share of $5.24, which beat the Zacks Consensus Estimate by $1.45 and doubled from the year-ago earnings. Revenues grew 10.7% year over year to $11.8 billion and edged past the consensus mark of $11.69 billion.
The U.S. life insurance behemoth MetLife (MET - Free Report) disappointed in its third-quarter 2024 results. MetLife reported earnings of $1.93 per share, which missed the Zacks Consensus Estimate by 23 cents and declined 1% from the year-ago quarter. Revenues declined 3.4% year over year to $17.6 billion and missed the consensus estimate of $18.47 billion.
SPDR S&P Insurance ETF follows the S&P Insurance Select Industry Index, holding well-diversified 51 stocks in its basket. About 50% of the portfolio is allocated to property and casualty insurance, while life & health insurance and insurance brokers round off the next two spots with double-digit exposure. SPDR S&P Insurance ETF has managed $996.7 million in its asset base and charges 35 bps in annual fees. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
With AUM of $748.9 million, iShares U.S. Insurance ETF offers exposure to U.S. companies that provide life, property and casualty, and full-line insurance. It tracks the Dow Jones U.S. Select Insurance Index and holds 52 securities in its basket with a double-digit concentration on the top two firms. Property & casualty insurance accounts for the largest share at 71.8%, while life & health insurance rounds off the next spot with double-digit exposure. iShares U.S. Insurance ETF charges 39 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook (read: 5 Top-Ranked ETFs Beating the S&P 500 in 2024).
Invesco KBW Property & Casualty Insurance ETF provides exposure to 25 companies primarily engaged in U.S. property and casualty insurance activities. It follows the KBW Nasdaq Property & Casualty Index and is concentrated on the top five firms that make up about 8% share each. Invesco KBW Property & Casualty Insurance ETF has managed $448.7 million in its asset base and has an expense ratio of 0.35%. KBWP has a Zacks ETF Rank #3 with a Medium risk outlook.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's How Insurance ETFs Are Placed Post Q3 Earnings
The insurance industry saw some strong earnings reports as some of the prominent players surpassed estimates either for earnings or revenues, or both. This led to a rally in insurance ETFs. SPDR S&P Insurance ETF (KIE - Free Report) , iShares U.S. Insurance ETF (IAK - Free Report) and Invesco KBW Property & Casualty Insurance ETF (KBWP - Free Report) are up 5.3%, 4.2% and 7.5%, respectively, over the past month.
Insurance Earnings in Focus
The second-largest U.S. life insurer Prudential Financial (PRU - Free Report) reported better-than-expected results. Earnings per share of $3.48 outpaced the Zacks Consensus Estimate by a penny but decreased 3.8% from the year-ago earnings. Revenues surged 94% year over year to $19.48 billion and edged past the consensus mark of $14.57 billion.
Chubb Corp. (CB - Free Report) , one of the leading property and casualty insurers, surpassed the Zacks Consensus Estimate for earnings per share by 79 cents but lagged the revenue estimate by $239 million. Another property and casualty insurer. Allstate ALL posted earnings per share of $3.91, surpassing the Zacks Consensus Estimate of $2.20. The bottom line increased nearly five-fold year over year. Revenues grew 12.3% year over year to $16.38 billion, well above the consensus mark of $16.24 billion.
Earnings per share of $2.16 reported by Aflac (AFL - Free Report) , a seller of supplemental health insurance, trumped the Zacks Consensus Estimate by 46 cents and improved 17.4% from the year-ago earnings. Revenues declined 42% year over year to $2.95 billion and lagged the consensus mark of $4.65 billion (see: all the Financial ETFs here).
Personal property and casualty insurer Travelers (TRV - Free Report) posted earnings per share of $5.24, which beat the Zacks Consensus Estimate by $1.45 and doubled from the year-ago earnings. Revenues grew 10.7% year over year to $11.8 billion and edged past the consensus mark of $11.69 billion.
The U.S. life insurance behemoth MetLife (MET - Free Report) disappointed in its third-quarter 2024 results. MetLife reported earnings of $1.93 per share, which missed the Zacks Consensus Estimate by 23 cents and declined 1% from the year-ago quarter. Revenues declined 3.4% year over year to $17.6 billion and missed the consensus estimate of $18.47 billion.
Insurance ETFs in Focus
SPDR S&P Insurance ETF (KIE - Free Report)
SPDR S&P Insurance ETF follows the S&P Insurance Select Industry Index, holding well-diversified 51 stocks in its basket. About 50% of the portfolio is allocated to property and casualty insurance, while life & health insurance and insurance brokers round off the next two spots with double-digit exposure. SPDR S&P Insurance ETF has managed $996.7 million in its asset base and charges 35 bps in annual fees. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
iShares U.S. Insurance ETF (IAK - Free Report)
With AUM of $748.9 million, iShares U.S. Insurance ETF offers exposure to U.S. companies that provide life, property and casualty, and full-line insurance. It tracks the Dow Jones U.S. Select Insurance Index and holds 52 securities in its basket with a double-digit concentration on the top two firms. Property & casualty insurance accounts for the largest share at 71.8%, while life & health insurance rounds off the next spot with double-digit exposure. iShares U.S. Insurance ETF charges 39 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook (read: 5 Top-Ranked ETFs Beating the S&P 500 in 2024).
Invesco KBW Property & Casualty Insurance ETF (KBWP - Free Report)
Invesco KBW Property & Casualty Insurance ETF provides exposure to 25 companies primarily engaged in U.S. property and casualty insurance activities. It follows the KBW Nasdaq Property & Casualty Index and is concentrated on the top five firms that make up about 8% share each. Invesco KBW Property & Casualty Insurance ETF has managed $448.7 million in its asset base and has an expense ratio of 0.35%. KBWP has a Zacks ETF Rank #3 with a Medium risk outlook.