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The insurance industry recently saw some strong earnings reports as some of the more prominent players surpassed estimates for earnings, revenues, or both. This led to a rally in insurance ETFs.

Such funds include the likes of SPDR S&P Insurance ETF (KIE - Free Report) , iShares U.S. Insurance ETF (IAK - Free Report), and Invesco KBW Property & Casualty Insurance ETF (KBWP - Free Report), which have moved up 5.3%, 4.2%, and 7.5%, respectively, over the past month.

Insurance Earnings in Focus

The second-largest U.S. life insurer, Prudential Financial (PRU - Free Report), reported better-than-expected results. Earnings per share of $3.48 outpaced the Zacks Consensus Estimate by a penny, but decreased 3.8% from the year-ago earnings. Revenues surged 94% year-over-year to $19.48 billion and edged past the consensus mark of $14.57 billion. 

Chubb Corp. (CB - Free Report), one of the leading property and casualty insurers, surpassed the Zacks Consensus Estimate for earnings per share by 79 cents, but it lagged the revenue estimate by $239 million.

Another property and casualty insurer, Allstate (ALL), posted earnings per share of $3.91, surpassing the Zacks Consensus Estimate of $2.20. The bottom line increased nearly five-fold year-over-year. Revenues grew 12.3% year-over-year to $16.38 billion, well above the consensus mark of $16.24 billion.

Earnings per share of $2.16 reported by Aflac (AFL - Free Report), a seller of supplemental health insurance, trumped the Zacks Consensus Estimate by 46 cents and improved 17.4% from the year-ago earnings. Revenues declined 42% year-over-year to $2.95 billion and lagged the consensus mark of $4.65 billion.

As a personal property and casualty insurer, Travelers (TRV - Free Report) posted earnings per share of $5.24, which beat the Zacks Consensus Estimate by $1.45 and doubled from the year-ago earnings. Revenues grew 10.7% year-over-year to $11.8 billion and edged past the consensus mark of $11.69 billion.

The U.S. life insurance behemoth that is MetLife (MET - Free Report) disappointed in its third-quarter 2024 results. MetLife reported earnings of $1.93 per share, which missed the Zacks Consensus Estimate by 23 cents and declined 1% from the year-ago quarter. Revenues declined 3.4% year-over-year to $17.6 billion and missed the consensus estimate of $18.47 billion.

Insurance ETFs in Focus

Here is a brief look at ETFs to consider in the insurance space.

SPDR S&P Insurance ETF (KIE - Free Report)

The SPDR S&P Insurance ETF follows the S&P Insurance Select Industry Index, holding a well-diversified basket of 51 stocks. About 50% of the portfolio is allocated to property and casualty insurance, while life & health insurance and insurance brokers round off the next two spots with double-digit exposure.

The ETF has managed $996.7 million in its asset base, and it charges 35 bps in annual fees. It has a Zacks ETF Rank #2 (Buy) rating with a Medium risk outlook.

iShares U.S. Insurance ETF (IAK - Free Report)

With AUM of $748.9 million, the iShares U.S. Insurance ETF offers exposure to U.S. companies that provide life, property and casualty, and full-line insurance. It tracks the Dow Jones U.S. Select Insurance Index, and it holds 52 securities in its basket with a double-digit concentration on the top two firms. Property & casualty insurance accounts for the largest share at 71.8%, while life & health insurance rounds off the next spot with double-digit exposure.

The ETF charges 39 bps in annual fees, and it has a Zacks ETF Rank #2 (Buy) rating with a Medium risk outlook.

Invesco KBW Property & Casualty Insurance ETF (KBWP - Free Report)  

The Invesco KBW Property & Casualty Insurance ETF provides exposure to 25 companies primarily engaged in U.S. property and casualty insurance activities. It follows the KBW Nasdaq Property & Casualty Index, and it is concentrated on the top five firms that make up about 8% share each.

The ETF has managed $448.7 million in its asset base, and it has an expense ratio of 0.35%. The fund has a Zacks ETF Rank #2 (Buy) rating with a Medium risk outlook.

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