Insurance stocks were down too much on Tuesday, and were up too much today. Make up your minds, will you? Was there any good reason behind the upswing? Yes, boffo earnings reports, and you can see my synopsis in this file.
Each time I do this, there are improvements to the data and the analysis. The data is on the tab labeled “data,” and a pivot table on the tab labeled “pivot.” The pivot table helps to bring out some obvious but useful bits of information.
- In general, financial insurers, the Bermudans, and personal lines have not done well.
- Commercial lines, life insurers and brokers have done well.
- Companies that are growing the top line are being rewarded. Those that are shrinking the top line are in general not being rewarded, even if it is the right thing to do.
- It could be a lot worse. Few insurers face credit problems, outside of financial insurers. Those few with subprime exposure, no matter how good, have gotten punished.