F&G.
Some of the latest North American life insurers have revealed their Q2 2025 results, including their investment portfolio yields, over the past few weeks.
The results cover the time from the beginning of April, including so-called ‘Liberation Day’, which saw international markets spiral downward.
The US has become one of the last holdouts to not cut interest rates more aggressively. The European Central Bank, the Bank of England, the Bank of Canada, and others have all slashed rates at a more precipitous rate.
Jerome Powell, the Chair of the US Federal Reserve, has defied President Trump’s wishes and kept rates higher, saying the market is too volatile.
“We have made no decisions about September,” Powell said to US media at the end of last month. The chair acknowledged that if the Fed cut its rate too soon, inflation could move higher, and if it cut too late, then the job market could suffer.”
However, the longevity of many life insurers’ investments means they are less likely to be affected than non-life companies.
One of the first to release their results was Globe Life, which reported Q2 net income $252.7 million in Q2 2025, compared to $258.4 million in Q2 2024
On the investment side, the company reported net investment income of $282.2 million, slightly down compared to Q2 2024. Excess investment income declined 19%, hitting $34.8 million.
Strong underwriting results across both life and health insurance supported the company’s performance in the second quarter.
Life insurance premiums grew by 5%, while health insurance premiums accounted for 31% of total premiums for the quarter. Furthermore, health insurance net sales surged 19%, outpacing life insurance net sales, which rose 1%.
Globe Life said in their press release that they were happy with the results and praised their “disciplined investment management for the positive numbers”.
One of the world’s largest life insurers, Prudential Financial, said net income attributable was $533 million versus net income of $1.198 billion for the year-ago quarter. The current quarter included a net after-tax charge from its annual assumption update and other refinements of $134 million versus a benefit of $679 million in the year-ago quarter.
“Our [Q2] financial performance reflects continued momentum with
sales across our global retirement and insurance businesses."
After-tax adjusted operating income of $1.284 billion versus $1.197 billion for the year-ago quarter. The current quarter included a net after-tax charge from our annual assumption update and other refinements of $36 million versus a benefit of $5 million in the year-ago quarter.
“Our second quarter financial performance reflects continued positive momentum with solid sales across our global retirement and insurance businesses as well as strong investment performance in PGIM,” said Andy Sullivan, CEO.
Realised investment showed a loss of $516 million compared to $175 million gain in Q2 in 2024. For H1 2025, the loss was $762 million compared to $112 million gain in the same period in 2024.
Regional player Kansas City Life recorded a net loss of $28.1 million in Q2 2025 compared to net income of $4.7 million in Q2 2024. “The primary factor in the decrease in net income in the second quarter of 2025 was the establishment of a legal settlement accrual of $35.5 million, net of tax, related to a potential settlement of class action lawsuits,” it said in its press release.
“Excluding this legal settlement accrual, net income would have been $7.5 million [in Q2] 2025,” said the company. After excluding the legal settlement accrual, the improvement over Q2 2025 included higher investment revenues and lower policyholder benefits, partially offset by a decline in insurance revenues.
For Canadian life insurance giant Manulife, results were better – “[we delivered] continued strong momentum in new business growth and strong earnings growth in our highest potential businesses.”
The company's Canadian core earnings were up 4%, said the release, as business growth in Group Insurance and higher investment spreads offset the impacts of a release in expected credit loss (ECL) provision in 2Q24 and the RGA Canadian universal life reinsurance transaction.
US core earnings decreased 53%, reflecting unfavourable life insurance claims experience, lower investment spreads and strengthened ECL provisions.
Global total core earnings were $1.726 billion for Q2, compared to $1.737 billion in A2 2024. However, H1 results for 2025 were higher than those of 2024: $3.49 billion compared to $3.44 billion.
"Our [Q2] results underscore the strength of our franchise, as we
continue to deliver growth across a diversified portfolio."
Core EBITDA margin and core revenue showed investment income of $4.74 billion in Q2, compared to $4.26 billion in Q2 last year.
"Our second-quarter results underscore the strength of our global franchise, as we continue to deliver growth across a diversified portfolio,” said Phil Witherington, Manulife President and CEO. “All three insurance segments achieved over 30% growth year over year in new business contractual service margin, clear evidence of our momentum and future earnings potential.”
F&G Annuities & Life, the Des Moines-based insurer, said its adjusted net earnings attributable to common shareholders (adjusted net earnings) for the second quarter were $103 million compared to $139 million for Q2 2024.
“Adjusted net earnings include significant income and expense items and alternative investment portfolio returns from short-term mark-to-market movement that differ from long-term return expectations,” said its press release.
The company said it had an “Excellent credit performance in the investment portfolio”, which helped results. “The investment portfolio is performing well, with 97% of fixed maturities being investment grade,” said F&G’s press release. “It is well matched to our liability profile and diversified across asset types. Credit-related impairments have remained low and stable, averaging 6 basis points over the past five years and have remained below pricing assumptions through the first half of 2025.”
“Our investment portfolio is performing well, and credit-related
impairments remain below our pricing assumption.”
Furthermore, reported adjusted return on assets (ROA) includes short-term fluctuations in investment income from alternative investments: Adjusted ROA of 71 basis points in the second quarter; adjusted ROA of 92 basis points over the last twelve months (LTM), as compared to 91 basis points in the second quarter 2024 LTM.
This, said the release, reflected “growing contributions from flow reinsurance and owned distribution”.
“Our investment portfolio is performing well, and credit-related impairments remain below our pricing assumption,” said Chris Blunt, F&G's CEO. “Overall, we have had tremendous growth since FNF acquired F&G in June 2020, with a cumulative 58% increase in book value per share excluding AOCI since year-end 2020, to $43.39 at the end of the second quarter."
Further details of the investments part of the business for Q2, in adjusted net earnings, showed investment income from alternative investments was $83 million, below management's long-term expected return of approximately 10%.
