Life Insurance 2Q26 Preview: Set-Up More Favorable For Perennially Disliked Sector

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Life Insurance 2Q26 Preview: Set-Up More Favorable For Perennially Disliked Sector

J P M O R G A N North America Equity Research

21 July 2026

Life Insurance 2Q26 Preview

Set-Up More Favorable For Perenially Disliked Sector

In our view, the combination of secular de-risking, a supportive macro backdrop, Insurance - Life & Nonlife

ACand reasonable stock valuations makes the life insurance sector relatively Pablo S. Singzon

attractive compared to other segments of the insurance market. We are (1-212) 622-2295

Overweight on GL, RGA, and MET, and Underweight on BHF and LNC. pablo.s.singzon@jpmorgan.com

Kevin Wijendra

• Weak variable investment income to pressure 2Q26 earnings, but results (1-212) 622-7054

likely to be healthy otherwise. For the overall life segment, we expect fee kevin.wijendra@jpmorgan.com

income to improve in 2Q26 and subsequent quarters given equity market J.P. Morgan Securities LLC

appreciation. In addition, we see core spread margins stabilizing after being

compressed by market competition in recent years. We think sales/flows will

be mixed across products, but are positive on certain pockets of the market,

including Japan sales (a positive for MET) and Medicare supplement sales (a

positive for GL). On capital return, we expect life insurers to be consistent with

their pace of buybacks, and remain comfortable with the private credit

exposure of our coverage companies. Our assumption is for life insurance and

disability margins to revert to more normal levels, but commentary from

companies seems to suggest the potential for upside to our expectations.

• In our view, life insurance fundamentals will continue to benefit from

secular changes in the sector and at the moment, a supportive macro

environment.