Looking back on property & casualty insurance stocks’ Q1 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 32 property & casualty insurance stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 2.2%.

While some property & casualty insurance stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.1% 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 $258 million, up 70.6% year on year. This print exceeded analysts’ expectations by 2.4%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ net premiums earned and revenue estimates.

Lemonade scored the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 13.3% since reporting and currently trades at $57.

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

Best Q1: Mercury General (NYSE: MCY)

Founded in 1961 and maintaining a network of over 6,300 independent agents across the country, Mercury General (NYSE: MCY) is an insurance company that primarily sells automobile insurance policies through independent agents in 11 states, with a strong focus on California.

Mercury General reported revenues of $1.54 billion, up 10.5% year on year, outperforming analysts’ expectations by 5.4%. The business had an incredible quarter with a beat of analysts’ EPS and net premiums earned estimates.

The market seems content with the results as the stock is up 3.6% since reporting. It currently trades at $101.00.

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

Weakest Q1: 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 $3.23 billion, up 18.2% year on year, falling short of analysts’ expectations by 10.7%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and EPS estimates.

Fidelity National Financial delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 6.9% since the results and currently trades at $47.76.

Read our full analysis of Fidelity National Financial’s results here.

W. R. Berkley (NYSE: WRB)

Founded in 1967 and operating through more than 50 specialized insurance units across the globe, W. R. Berkley (NYSE: WRB) underwrites commercial insurance and reinsurance through specialized subsidiaries serving industries from healthcare to construction to transportation.

W. R. Berkley reported revenues of $3.69 billion, up 4% year on year. This result came in 1.8% below analysts’ expectations. Overall, it was a slower quarter as it also produced a significant miss of analysts’ book value per share and net premiums earned estimates.

The stock is flat since reporting and currently trades at $65.96.

Read our full, actionable report on W. R. Berkley here, it’s free.

Palomar Holdings (NASDAQ: PLMR)

Founded in 2013 to fill gaps in catastrophe insurance markets, Palomar Holdings (NASDAQ: PLMR) is a specialty insurance provider that offers property and casualty insurance products in underserved markets, with a focus on earthquake coverage.

Palomar Holdings reported revenues of $278.9 million, up 59.7% year on year. This print topped analysts’ expectations by 5.8%. More broadly, it was a mixed quarter as it also logged an impressive beat of analysts’ net premiums earned estimates but a significant miss of analysts’ book value per share estimates.

The stock is flat since reporting and currently trades at $109.66.

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

Market Update

Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.