Looking back on property & casualty insurance stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Lemonade (NYSE:LMND) 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 33 property & casualty insurance stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 14.9%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Lemonade (NYSE:LMND)

Built on the principle of giving back unused premiums to charitable causes selected by policyholders, Lemonade (NYSE:LMND) is a technology-driven insurance company that offers homeowners, renters, pet, car, and life insurance through an AI-powered digital platform.

Lemonade reported revenues of $194.5 million, up 42.4% year on year. This print exceeded analysts’ expectations by 4.8%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS and revenue estimates.

Interestingly, the stock is up 35.4% since reporting and currently trades at $80.19.

Is now the time to buy Lemonade? Access our full analysis of the earnings results here, it’s free.

Best Q3: Root (NASDAQ:ROOT)

Pioneering a data-driven approach that rewards good driving habits, Root (NASDAQ:ROOT) is a technology-driven auto insurance company that uses mobile apps to acquire customers and data science to price policies based on individual driving behavior.

Root reported revenues of $387.8 million, up 26.9% year on year, outperforming analysts’ expectations by 4.5%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ net premiums earned estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 19.5% since reporting. It currently trades at $72.09.

Is now the time to buy Root? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: 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 $22.51 billion, up 14.2% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ book value per share estimates.

As expected, the stock is down 15.1% since the results and currently trades at $203.99.

Read our full analysis of Progressive’s results here.

RLI (NYSE:RLI)

Founded in 1965 and named after its original focus on “replacement lens insurance” for contact lens wearers, RLI (NYSE:RLI) is a specialty insurance company that underwrites property, casualty, and surety products through wholesale brokers, independent agents, and carrier partnerships.

RLI reported revenues of $449 million, up 5.3% year on year. This print met analysts’ expectations. Taking a step back, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but a significant miss of analysts’ book value per share estimates.

The stock is flat since reporting and currently trades at $60.17.

Read our full, actionable report on RLI here, it’s free.

Fidelity National Financial (NYSE:FNF)

Issuing more title insurance policies than any other company in the United States, Fidelity National Financial (NYSE:FNF) provides title insurance and escrow services for real estate transactions while also offering annuities and life insurance through its F&G subsidiary.

Fidelity National Financial reported revenues of $4.03 billion, up 11.9% year on year. This number topped analysts’ expectations by 13%. Overall, it was an exceptional quarter as it also recorded a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is down 3.2% since reporting and currently trades at $52.79.

Read our full, actionable report on Fidelity National Financial here, it’s free.

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