Second-quarter results of the insurance industry players are expected to reflect prudent pricing, exposure growth, portfolio optimization, strong retention, renewals, reinsurance arrangements, and ongoing digital acceleration. A relatively subdued catastrophe environment is likely to have provided an additional boost to performance.
With the help of the Zacks Stock Screener, we have identified five insurers, namely Cincinnati Financial Corporation CINF, Reinsurance Group of America RGA, Oscar Health OSCR, Willis Towers Watson WTW and Aflac Inc AFL, which are poised to outperform the Zacks Consensus Estimate in second-quarter earnings. These stocks have the ideal combination of two ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), 3 (Hold) — to surpass expectations. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Factors Likely to Impact Q2 Results
Prudent pricing, solid policy retention and exposure growth across several business lines are likely to have supported insurers’ premium growth in the second quarter of 2026. Global commercial insurance rates declined in 2025. The softening trend appears to have continued into the second quarter, with Marsh estimating a 6% decrease in global property rates. Meanwhile, increased global travel activity is likely to have strengthened demand for auto insurance and supported premium growth.
The catastrophe environment remained relatively favorable, with no major severe events reported during the quarter. Early results from insurers indicate lower catastrophe-related claims, which likely aided underwriting performance. Disciplined pricing, effective reinsurance arrangements, portfolio optimization, improved coverage structures and favorable reserve development are also expected to have supported underwriting profitability. JPMorgan estimates the quarter’s total insured catastrophe losses at approximately $15 billion, while Goldman Sachs, according to Reinsurance News, projects global insured losses of nearly $24 billion, with primary insurers expected to bear most of the impact.
The Federal Reserve kept interest rates unchanged during the quarter. Insurers’ net investment income is likely to have benefited from larger invested asset bases, healthy operating cash flows, elevated bond yields and higher interest income from fixed-maturity securities.
Within life insurance, continued emphasis on protection-oriented products likely supported steady sales growth. Insurers have also expanded solutions combining guaranteed retirement income with life and health benefits, addressing rising demand for “living” benefits alongside traditional protection.
Greater adoption of artificial intelligence, blockchain, advanced analytics, telematics, cloud computing and robotic process automation continues to improve efficiency and lower operating costs, supporting margin expansion. Strong capital positions have also enabled insurers to pursue strategic acquisitions and maintain shareholder returns through dividends and share repurchases.
5 Potential Outperformers This Earnings Season
Cincinnati Financial markets property and casualty insurance. Second-quarter premiums are likely to have benefited from greater exposure, improved pricing, higher property and casualty agency new business, increased standard-lines new business and stronger contributions from Cincinnati Re. Robust operating cash flow and higher bond yields are expected to have boosted net investment income. However, total benefits and expenses are likely to have risen due to higher insurance losses, policyholder benefits, underwriting and acquisition costs, interest expense and other operating expenses. Disciplined underwriting and a favorable catastrophe environment are likely to have supported underwriting profitability.
The Zacks Consensus Estimate for CINF’s second-quarter earnings per share is pegged at $1.82, suggesting a decrease of 7.6% from the year-ago reported figure. CINF has an Earnings ESP of +7.22% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cincinnati Financial Corporation Price and EPS Surprise
Cincinnati Financial Corporation price-eps-surprise | Cincinnati Financial Corporation Quote
Reinsurance Group of America is a leading global provider of traditional life and health reinsurance and financial solutions with operations in the United States, Latin America, Canada, Europe, the Middle East, Africa, Asia and Australia. Favorable overall experience, sustained momentum in longevity and contributions from new business are likely to have supported segment performance. Investment income is likely to have benefited from a larger average invested asset base, higher risk-free rates on new investments and improved yields across alternative and private asset classes.
The Zacks Consensus Estimate for RGA’s second-quarter earnings is pegged at $6.52 per share, indicating an increase of 38.1% from the year-ago reported figure. RGA has an Earnings ESP of +0.42% and a Zacks Rank #3 at present.
Reinsurance Group of America, Incorporated Price and EPS Surprise
Reinsurance Group of America, Incorporated price-eps-surprise | Reinsurance Group of America, Incorporated Quote
Oscar Health operates as a healthcare technology company in the United States. Membership growth is likely to have expanded the premium base and supported revenue growth. Expenses are likely to have risen due to higher medical costs associated with increased enrollment. However, disciplined pricing, favorable claims and risk-adjustment seasonality, changes in metal-tier and new-member mix, and favorable prior-period reserve development are likely to have improved the medical loss ratio.
The Zacks Consensus Estimate for OSCR’s second-quarter earnings per share is pegged at 45 cents, suggesting an increase of 150.6% from the year-ago reported figure. OSCR has an Earnings ESP of +45.59% and a Zacks Rank #3 at present.
Oscar Health, Inc. Price and EPS Surprise
Oscar Health, Inc. price-eps-surprise | Oscar Health, Inc. Quote
Willis Towers Watson is a leading global advisory, broking and solutions company. Second-quarter revenues are likely to have benefited from solid performance across all segments. The insurance brokerage business is expected to have gained from the increasing adoption and scale of its AI-enabled solutions. However, expenses are likely to have risen due to higher incentive and salary costs, professional liability claim losses, and increased consulting and compensation expenses.
The Zacks Consensus Estimate for WTW’s second-quarter earnings per share is pegged at $3.13, suggesting an increase of 9.4% from the year-ago reported figure. WTW has an Earnings ESP of +0.34% and a Zacks Rank #3 at present.
Willis Towers Watson Public Limited Company Price and EPS Surprise
Willis Towers Watson Public Limited Company price-eps-surprise | Willis Towers Watson Public Limited Company Quote
Aflac offers supplemental health and life insurance products in Japan and the United States. The company likely benefited from improving trends in Japan, supported by recently launched medical products. Aflac U.S. is expected to have gained from higher sales and broad-based momentum across its group business, particularly in group voluntary products.
The Zacks Consensus Estimate for AFL’s second-quarter earnings is pegged at $1.77, indicating a decrease of 0.6% from the year-ago reported figure. AFL has an Earnings ESP of +0.34% and a Zacks Rank #3 at present.
Aflac Incorporated Price and EPS Surprise
Aflac Incorporated price-eps-surprise | Aflac Incorporated Quote
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Aflac Incorporated (AFL): Free Stock Analysis Report
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Reinsurance Group of America, Incorporated (RGA): Free Stock Analysis Report
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Oscar Health, Inc. (OSCR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).