US life insurance Q2'25 earnings recap: AI, new 401(k) options, strategic moves

US life insurers had an eventful second-quarter earnings season, with company executives covering a myriad of topics from the use of AI to the impact of policy changes to 401(k)s and the potential for new strategic moves.

Six of the top 10 life insurers reported second-quarter operating revenue grew year over year, with Corebridge Financial Inc. booking the largest increase by dollar amount of about $240 million since the year-ago quarter.

MetLife Inc. reported the largest operating revenue of the group at $17.92 billion, down from $18.68 billion in the second quarter of 2024. MetLife's decrease in operating revenue also represented the biggest year-over-year drop among top US life insurers.

Second-quarter operating expenses grew for seven of the 10 largest US life insurers, and half of the top group saw operating income increase year over year.

A busy quarter

Several life insurers used their second-quarter calls to convey excitement over the idea of allowing access to private market investments within defined contribution retirement accounts.

Principal Financial Group Inc. applauded the idea of using partnerships to offer private investments within 401(k)s, calling it a "big opportunity" during its earnings call. US defined-contribution plans hold roughly $12 trillion of assets.

Meanwhile, Voya Financial Inc., which joined forces with Blue Owl Capital Corp. in July, was also enthused about the potential for change. Its partnership with Blue Owl is intended to expand offerings for its 401(k)s, something that Jay Kaduson, CEO of Voya's Workplace Solutions segment, said puts Voya in a "better position" to fill what he called "an expanding need of our customers and plan sponsors."

The day after Voya's call, President Donald Trump issued an executive order Aug. 7 stating that "every American preparing for retirement should have access to funds that include investments in alternative assets." Trump defined alternative assets as those including private market investments, real estate and holdings in "actively managed investment vehicles that are investing in digital assets."

Brighthouse Financial Inc. did not comment on any deal rumors during its earnings call, but management highlighted its strengths as a "premier carrier." The Wall Street Journal published the initial reports that Aquarian Holdings LLC is in exclusive talks to acquire Brighthouse.

After closing the majority of its landmark $2.8 billion individual retirement variable annuity reinsurance transaction, Corebridge used its second-quarter earnings call to signal that it is considering other possible deals. CEO Kevin Hogan said that although Corebridge "focused" on the variable annuity deal "significantly," he is still looking at other "potential transactions."

Corebridge and other insurers also discussed how they are using AI to progress business operations. Hogan called AI a "significant opportunity" for the life insurance industry and noted that Corebridge has already implemented "advanced practices" with its automated life underwriting capability, transacting around 80% of our new decisions."

Aflac Inc. also touted its generative AI capabilities, with Masatoshi Koide, president and representative director of Aflac Life Insurance Japan, saying GenAI is being used to undergo a digital transformation in Japan. In August, Aflac Japan rolled out "digital human avatar services," which are able to respond to customer inquiries. Koide also said Aflac is ahead of its original goals around implementing GenAI and said parts of it should reduce company expenses.

EPS

Six of the 10 largest US life insurers increased year over year in operating earnings per share in the second quarter, while four companies decreased.

Brighthouse Financial logged the largest drop in second-quarter operating earnings at $3.43 per share, compared with $5.56 in the year-ago period.

On the other hand, Principal Financial reported the largest year-over-year increase in operating earnings, with $2.16 in the second quarter of 2025 versus $1.63 in the second quarter of 2024.

– Read more about what a deal between Aquarian and Brighthouse would look like. – Click here to read about US life insurance stock performance post earnings.