The second-quarter 2026 reporting season is gathering pace, and the spotlight is shifting to the insurance industry. Several major S&P 500 insurers, including Marsh, AON and The Hartford, have already delivered results that showed solid year-over-year growth, offering an encouraging read on the sector. Attention now turns to the next batch of earnings from The Allstate Corporation ALL, MetLife, Inc. MET and Radian Group Inc. RDN, all scheduled to report tomorrow. Before looking at what each company could deliver, it helps to understand the broader trends shaping the industry this quarter.
The Insurance space belongs to the Finance sector (one of the 16 broad Zacks sectors within the Zacks Industry classification), whose overall earnings are projected to jump 22.9% from the year-ago quarter. Revenues are expected to grow 12%, as indicated by our latest Earnings Preview.
The Insurance Industry Setup Ahead of Q2 Reports
The insurance industry heads into the second-quarter reporting season with several supportive trends. Profitability is expected to have been driven by disciplined underwriting, effective cost management and a favorable business mix. At the same time, commercial insurance pricing has become softer. Marsh’s Global Insurance Market Index showed global commercial insurance rates declined for the eighth consecutive quarter as abundant capacity and competition weighed on pricing. Nevertheless, U.S. casualty line rates continued upward momentum due to claims frequency and severity.
Insurers also remain focused on retaining customers while improving digital capabilities. Faster and more transparent claims processing is helping strengthen customer relationships and improve the overall claims experience.
Insurtech investment has become more selective, with funding flowing to larger companies that offer scalable technology and clear business value. While operating expenses remain a key area to watch, wider use of automation and digital tools is helping insurers offset part of the cost pressure.
Natural catastrophe losses have also been favorable. Gallagher Re’s Natural Catastrophe and Climate Report showed that economic losses during the first half of 2026 were the lowest since 2020, while the second quarter marked the fifth straight quarter without a single insured catastrophe loss exceeding $10 billion. That should leave insurers with healthy catastrophe budgets for the rest of the year.
The insurers in general are expected to have witnessed net investment income growth in the second quarter as higher-yielding assets continue replacing lower-yielding securities. Meanwhile, life insurers continued benefiting from stable demand for retirement and protection products.
Against this backdrop, investors will be watching whether Allstate, MetLife and Radian can build on the industry's strong start to the earnings season.
What’s in Store for ALL, MET & RDN on Aug. 5?
Our proprietary model clearly indicates that a company needs to have the right combination of two key elements — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Now let’s find out how the following three companies are placed ahead of their June-quarter earnings release tomorrow.
Allstate: This leading P&C insurer’s second-quarter revenues are expected to have been supported by nearly 6% net premiums earned growth in Property-Liability. The Zacks Consensus Estimate for net investment income indicates 15.4% year-over-year growth from $754 million. The combined ratio for Commercial Lines is pegged at 89.1%, improving from 116.3% a year ago. However, the consensus mark for underwriting income from Property-Liability indicates a 22.7% year-over-year decline in the second quarter, affecting the bottom line. The same from the Auto business is also expected to have witnessed a 32.6% fall from a year ago.
The Zacks Consensus Estimate for the second-quarter earnings and top line is pegged at $5.76 per share and $17.73 billion, respectively, indicating an earnings decline of 3% and a revenue increase of 5.7% from the corresponding year-ago quarter’s readings. Allstate’s bottom line beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 51.1%.
The Allstate Corporation Price and EPS Surprise
The Allstate Corporation price-eps-surprise | The Allstate Corporation Quote
However, our proven model does not conclusively predict an earnings beat for Allstate this time around, as the stock has an Earnings ESP of -0.15% and a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
MetLife: The company is expected to have benefited from 10.7% year-over-year growth in premiums in the second quarter. Adjusted earnings from Group Benefits and Retirement & Income Solutions are expected to have witnessed 7.9% and 10.3% increases from a year ago, supporting its bottom-line growth. Yet, the Zacks Consensus Estimate for net investment incomeindicates a 2.8% year-over-year decline.
The Zacks Consensus Estimate for the second-quarter earningsstands at $2.30 per share, which indicates a 13.9% jump from a year ago. MetLife’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed once, the average surprise being 2.4%. The consensus mark for revenues is pegged at $19.34 billion, signaling a 7.9% increase.
MetLife, Inc. Price and EPS Surprise
MetLife, Inc. price-eps-surprise | MetLife, Inc. Quote
Our proven model predicts a likely earnings beat for MetLife this time around, as the stock has an Earnings ESP of +0.66% and a Zacks Rank #3.
Radian Group: The Zacks Consensus Estimate for RDN’s net premiums earned indicates a 0.3% year-over-year gain. Mortgage primary insurance in force is expected to have increased 1.5% from a year ago. However, the loss ratio is pegged at 15% for the quarter, up from 5.1% in the year-ago period. Net investment income is currently pegged at $57 million for the quarter.
The Zacks Consensus Estimate for the second-quarter earnings and top line stands at $1.38 per share and $567.7 million, respectively, indicating an earnings jump of 36.6% and revenue growth of 82.1% from the corresponding year-ago quarter. Radian Group’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 10.7%.
Radian Group Inc. Price and EPS Surprise
Radian Group Inc. price-eps-surprise | Radian Group Inc. Quote
However, our proven model does not conclusively predict an earnings beat for Radian Group this time around, as the stock has an Earnings ESP of 0.00% and a Zacks Rank #3.
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This article originally published on Zacks Investment Research (zacks.com).