The long-term fundamental outlook for the life insurance sector is considered downbeat, although there is a bullish stance on these stocks in the near term. Analysts argue that the favorable macroeconomic environment, robust balance sheets among insurers, and the flexibility for share buybacks coupled with current valuations will likely enable life insurance stocks to continue to outperform. The potential deterioration in corporate credit is viewed as a key risk to this optimistic perspective.

Analysts remain optimistic about the prospects for life insurers projecting into 2025, citing improving free cash flow and benefits from higher interest rates. The solid positions in excess capital, robust group benefits earnings, along with potential for more reinsurance and merger activities are key drivers of positivity. In contrast, the property and casualty segments are seen as high-quality over the long term but are currently navigating a challenging part of the underwriting cycle, particularly for property coverage. Additionally, the casualty loss cost trend presents ongoing risks, likely impeding more favorable developments.