Overview
Property and casualty insurers‘ stocks limped to the finish line of an up-and-down third quarter in the market, despite some impressive gains recorded by large-cap insurers, according to S&P Global’s report. We analyzed the market data and highlighted key points.
The S&P 500, up 7%, easily outpaced the S&P 500 Insurance Index, which was down 2.65% as of market close on Sept. 29.
Meanwhile, the S&P 500 P&C Index was down 2.82%, while the S&P 500 Managed Health Care and Life and Health indexes were up 1.91% and 1.62%, respectively.
Key Highlights
- Broader market vs insurance – The S&P 500 climbed 7% in Q3, while the S&P 500 Insurance Index fell 2.65% and the P&C Index dropped 2.82%.
- Top gainer – Alignment Healthcare surged 24.2%, driven by strong Medicare retention rates, 28% membership growth, and revenue of $1.02bn (+49% YoY).
- P&C movers – Lemonade (+22%), Mercury General (+21.5%), and HCI Group (+18.1%) delivered rare double-digit momentum for the segment.
- Life insurers rebound – Lincoln National (+17.8%), Genworth (+15.6%), Globe Life (+15.3%), and Jackson Financial (+15.1%) benefited from restructuring strategies that drew investors.
- Steepest declines – Centene (-36.2%) and Molina (-36%) led losses, hit by Medicaid cost pressures, while Slide (-35.1%) and Root (-27%) also struggled despite Root posting its fourth profitable quarter.
Analysis of Q3 insurance stocks shows Alignment Healthcare leading gains, while Centene, Molina, Slide, and Root posted steep losses amid sector headwinds.
The negative numbers for the P&C companies
The negative numbers for the P&C companies, and the insurance sector as a whole, made for an “underwhelming” third quarter, said CFRA Research analyst Cathy Seifert. She said the results are a reversal of fortune compared to 2024, Beinsure noted.
If you look at it against the backdrop of the broader financial sector or even the broader market, insurance stocks last year were one of the better performing financial groups
Cathy Seifert, CFRA Research analyst
“This year, we’ve seen a turnaround, and they’ve been replaced by a lot of risk-on bets, such as investment banks, some large-cap banks, and a select number of asset managers,” Seifert said.
Alignment Healthcare tops Q3 insurance stock gains
Life and health carriers grabbed nearly half the leaderboard in Q3. Four of the top 10 performing insurance stocks came from that camp, according to S&P Global Market Intelligence.
P&C names filled another four slots, while two managed care providers—including the top gainer—rounded it out.
That leader was Alignment Healthcare. Shares of the Orange, Calif.-based Medicare Advantage player surged 24.2% in the quarter. Analysts pointed to upbeat remarks at the Morgan Stanley Global Healthcare Conference.
Leerink Partners’ Whit Mayo noted the company projected “100% retention” in its Medicare plans with four stars or higher, Beinsure noted.
Q3 Insurance Stocks Performance
| Company | Sector | Q3 Performance (%) | Notes |
| Alignment Healthcare | Managed Care | 24.2 | Led sector; Medicare plan retention, revenue $1.02bn (+49% YoY) |
| Lemonade | P&C | 22.0 | Strong Q3 gain |
| Mercury General | P&C | 21.5 | Strong Q3 gain |
| HCI Group | P&C | 18.1 | Strong Q3 gain |
| Lincoln National | Life | 17.8 | Life insurer, restructuring moves |
| Genworth Financial | Life | 15.6 | Life insurer, restructuring moves |
| Globe Life | Life | 15.3 | Life insurer, restructuring moves |
| Jackson Financial | Life | 15.1 | Life insurer, restructuring moves |
| Aspen Insurance Holdings | P&C | 16.0 | Acquired by Sompo for $3.5bn |
| Centene | Managed Care | -36.2 | Dropped sharply on Medicaid costs; partial rebound late Q3 |
| Molina | Managed Care | -36.0 | Dropped sharply on Medicaid costs; partial rebound late Q3 |
| Slide Insurance Holdings | P&C | -35.1 | Weak post-IPO performance |
| Root | P&C | -27.0 | Profit streak but weak outlook |
Numbers back the pitch
Founder and CEO John Kao told investors on the Q2 earnings call that membership rose 28% year over year. Revenue clocked in at $1.02bn, up 49% from 2024.
P&C insurers slotted just behind. Lemonade gained 22% in the quarter, while Mercury General added 21.5% and HCI Group of Tampa, Fla., rose 18.1%.
Together, the trio gave the property/casualty segment some rare momentum in a choppy quarter for the broader insurance complex.
Best, worst performing US insurance stocks
Leading the life insurers in the analysis was Lincoln National Corp. at No. 5, up 17.8%, and Genworth Financial, up 15.6%. In addition, Globe Life was up 15.3% while Jackson Financial rose 15.1%.
Seifert said that a number of companies in the life space took aggressive action to “manage the myriad of risks that these companies have to manage and many of whom struggle to manage.”
We saw investors taking note of some of the positive and aggressive restructuring moves that many of these companies have made
P&C carrier Aspen Insurance Holdings Ltd. saw its stock jump 16% in the quarter, the sixth-best in the analysis.
However, the big news for the Bermuda-based carrier was the announcement on Aug. 27 that it was being acquired by Japan-based Sompo Holdings Inc. for $3.5 bn. The deal is expected to close in the first half of 2026 and will lead to Aspen’s delisting.
Centene, Molina lead steep Q3 insurance stock declines
Losses hit hard in Q3 for several insurers. Six names in the S&P Global analysis shed at least 20% of market value. Managed care took the worst of it, Beinsure noted.
Centene dropped 36.2%. Molina slid 36%. Both declines began during the July earnings stretch, when Medicaid funding shifts and pandemic-related hangovers collided with rising costs.
The damage was immediate, though not permanent. After bottoming on Aug. 6, Centene rebounded 36.4% to close Sept. 24 at $34.39. Molina climbed 24.3% over the same span, recovering to $189.30 from $152.31.
Slide Insurance Holdings looked just as shaky. Shares fell 35.1% for the quarter, continuing a rough stretch that started right after its June IPO. Root fared little better, losing 27%.
The Columbus, Ohio-based auto insurer actually marked its fourth straight profitable quarter, but management’s warning of slower growth ahead spooked the market. By the week of Aug. 8, the stock had dropped 29.7%.
The snapback rallies in Centene and Molina show investor appetite isn’t gone. But the quarter underlined how quickly sentiment can turn when policy shifts, medical costs, and cautious guidance stack up at once.
FAQ
The S&P 500 gained 7% by Sept. 29, while the S&P 500 Insurance Index fell 2.65%. The S&P 500 P&C Index dropped 2.82%, lagging other insurance subgroups.
Analysts noted that P&C insurers underperformed after a strong 2024. Market preference shifted to risk-on plays such as investment banks, large-cap banks, and select asset managers.
Alignment Healthcare led the sector with a 24.2% gain. The company highlighted 100% retention in top-rated Medicare plans and reported Q2 revenue of $1.02bn, up 49% from 2024.
Lemonade rose 22%, Mercury General gained 21.5%, and HCI Group advanced 18.1%. Aspen Insurance Holdings also climbed 16% after announcing its $3.5bn acquisition by Japan’s Sompo Holdings.
Lincoln National posted a 17.8% increase, Genworth Financial rose 15.6%, Globe Life was up 15.3%, and Jackson Financial added 15.1%. Analysts credited aggressive restructuring moves for investor interest.
Centene fell 36.2% and Molina dropped 36%. Slide Insurance Holdings declined 35.1% following its IPO, and Root lost 27% after cautious growth guidance despite four straight profitable quarters.
Yes. After bottoming on Aug. 6, Centene rebounded 36.4% to $34.39 by Sept. 29, while Molina rallied 24.3% to $189.30. Both showed that investor appetite remained despite earlier selloffs.
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AUTHORS: Tom Jacobs and Jason Woleben – senior research specialist covering the U.S. insurance industry for S&P Global Market Intelligence.
Edited by Yana Keller — Lead Insurance Editor of Beinsure Media
