As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at property & casualty insurance stocks, starting with Allstate (NYSE: ALL).

Property & Casualty (P&C) insurers protect individuals and businesses against financial loss from damage to property or from legal liability. This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. On the other hand, P&C insurers face a major secular headwind from the increasing frequency and severity of catastrophe losses due to climate change. Furthermore, the liability side of the business is pressured by 'social inflation'—the trend of rising litigation costs and larger jury awards.

The 33 property & casualty insurance stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 15.1%.

In light of this news, share prices of the companies have held steady as they are up 1.4% on average since the latest earnings results.

Allstate (NYSE: ALL)

Born from a Sears, Roebuck & Co. initiative during the Great Depression with its famous "You're in good hands" slogan, Allstate (NYSE: ALL) is one of America's largest personal property and casualty insurers, offering protection for autos, homes, and personal property.

Allstate reported revenues of $16.2 billion, down 1.1% year on year. This print fell short of analysts’ expectations by 3.3%, but it was still a very strong quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ net premiums earned estimates.

Interestingly, the stock is up 3.2% since reporting and currently trades at $201.03.

Is now the time to buy Allstate? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Root (NASDAQ: ROOT)

Pioneering a data-driven approach that rewards good driving habits, Root (NASDAQ: ROOT) is a technology-driven auto insurance company that uses mobile apps to acquire customers and data science to price policies based on individual driving behavior.

Root reported revenues of $387.8 million, up 26.9% year on year, outperforming analysts’ expectations by 4.5%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ net premiums earned estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10% since reporting. It currently trades at $80.51.

Is now the time to buy Root? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Progressive (NYSE: PGR)

Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive (NYSE: PGR) is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.

Progressive reported revenues of $22.51 billion, up 14.2% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ book value per share estimates.

As expected, the stock is down 5.9% since the results and currently trades at $226.33.

Read our full analysis of Progressive’s results here.

Kinsale Capital Group (NYSE: KNSL)

Founded in 2009 during the aftermath of the financial crisis when many insurers were retreating from riskier markets, Kinsale Capital Group (NYSE: KNSL) is an insurance company that specializes in writing policies for hard-to-place, unusual, or high-risk businesses that standard insurers typically avoid.

Kinsale Capital Group reported revenues of $497.5 million, up 19% year on year. This print topped analysts’ expectations by 10.9%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ net premiums earned estimates and a solid beat of analysts’ revenue estimates.

The stock is down 18% since reporting and currently trades at $372.09.

Read our full, actionable report on Kinsale Capital Group here, it’s free for active Edge members.

Assurant (NYSE: AIZ)

With roots dating back to 1892 when it was founded by a Civil War veteran, Assurant (NYSE: AIZ) provides specialized insurance products and services that protect major consumer purchases like mobile devices, vehicles, homes, and appliances.

Assurant reported revenues of $3.23 billion, up 8.9% year on year. This result surpassed analysts’ expectations by 1.5%. It was a stunning quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ net premiums earned estimates.

The stock is up 3.6% since reporting and currently trades at $222.40.

Read our full, actionable report on Assurant here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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