As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the property & casualty insurance industry, including Progressive (NYSE: PGR) and its peers.
Property & Casualty (P&C) insurers protect individuals and businesses against financial loss from damage to property or from legal liability. This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. On the other hand, P&C insurers face a major secular headwind from the increasing frequency and severity of catastrophe losses due to climate change. Furthermore, the liability side of the business is pressured by 'social inflation'—the trend of rising litigation costs and larger jury awards.
The 31 property & casualty insurance stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 0.9% above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.9% since the latest earnings results.
Progressive (NYSE: PGR)
Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive (NYSE: PGR) is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.
Progressive reported revenues of $23.61 billion, up 7.3% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with EPS in line with analysts’ estimates and net premiums earned in line with analysts’ estimates.
The market seems disappointed with the results as the stock is down 10.6% since reporting and currently trades at $202.49.
Is now the time to buy Progressive? Access our full analysis of the earnings results here, it’s free.
Best Q2: Essent Group (NYSE: ESNT)
Serving as a crucial bridge between homebuyers and the American dream of homeownership, Essent Group (NYSE: ESNT) provides private mortgage insurance and title services that enable lenders to offer home loans with down payments of less than 20%.
Essent Group reported revenues of $362.7 million, up 13.6% year on year, outperforming analysts’ expectations by 9.7%. The business had a stunning quarter with a beat of analysts’ EPS estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 1.9% since reporting. It currently trades at $64.26.
Is now the time to buy Essent Group? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Radian Group (NYSE: RDN)
Founded during the housing boom of 1977 and weathering multiple real estate cycles since, Radian Group (NYSE: RDN) provides mortgage insurance and real estate services, helping lenders manage risk and homebuyers achieve affordable homeownership.
Radian Group reported revenues of $580.7 million, up 90.8% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates.
As expected, the stock is down 14.4% since the results and currently trades at $33.55.
Read our full analysis of Radian Group’s results here.
Employers Holdings (NYSE: EIG)
With roots in Nevada and a strong concentration in California where 45% of its premiums are generated, Employers Holdings (NYSE: EIG) is a specialty provider of workers' compensation insurance focused on small and select businesses engaged in low-to-medium hazard industries across the United States.
Employers Holdings reported revenues of $220.2 million, down 10.6% year on year. This number beat analysts’ expectations by 8.4%. It was a strong quarter as it also recorded a beat of analysts’ EPS estimates.
The stock is down 4.3% since reporting and currently trades at $47.63.
Read our full, actionable report on Employers Holdings here, it’s free.
First American Financial (NYSE: FAF)
Tracing its roots back to 1889 when California was experiencing its first major real estate boom, First American Financial (NYSE: FAF) provides title insurance, settlement services, and risk solutions for residential and commercial real estate transactions across the United States and internationally.
First American Financial reported revenues of $2.12 billion, up 15% year on year. This print topped analysts’ expectations by 3.4%. Overall, it was an exceptional quarter as it also produced a beat of analysts’ EPS estimates.
The stock is down 6.5% since reporting and currently trades at $65.97.
Read our full, actionable report on First American Financial here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
