2Q26 Life Insurance Preview: Favorable Trends Into the Summer

Research evidence excerpt

2Q26 Life Insurance Preview: Favorable Trends Into the Summer

Foundation

July 6, 2026 04:00 AM GMT

Morgan Stanley & Co. LLCMInsurance - Life/Annuity | North America Bob Jian Huang

Equity Analyst

2Q26 Life Insurance Preview: Bob.Huang@morganstanley.comJie Cheng +1 212 761-6136

Research Associate

Jie.Cheng1@morganstanley.com +1 212 761-3878

Favorable Trends Into the

Insurance - Life/Annuity

North America

Industry View AttractiveSummer

What’s Changed

Strong equity markets, favorable mortality, and stable rates Globe Life Inc (GL.N) From To

Price Target $181.00 $208.00

should support 2Q earnings, while weak VII, PMFL headwinds,

and yen weakness offset some of the benefit. We see the best MetLifePrice TargetInc. (MET.N) From$93.00 To$103.00

setup for insurers with equity market leverage and company- Principal Financial Group

specific catalysts. (PFG.O) From To

Price Target $107.00 $112.00

Life Insurance Overview: Strong equity markets, stabilized favorable mortality, Manulife Financial Corp.

higher long-term rates, and a diminished likelihood of rate cuts in 2026 are (MFC.TO) From To

Price Target C$52.00 C$58.00

supporting life insurance earnings in 2Q26. Latin American currency strength is also

Sun Life Financial Inc.

benefiting earnings. Although VII headwinds, and a weaker yen are acting as offsets, (SLF.TO) From To

these are largely expected. The quarter should see solid life insurance earnings as a Price Target C$92.00 C$105.00

result, supporting the medium term thesis of EPS expansion through disciplined See our Life Insurance price target changes in

underwriting, stable interest rate and supportive equity market environment. Exhibit 4

• Equity market rebound should support earnings and AUM. In 2Q26, equity