Global Insurance Stock Aggregate Email
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GLOBAL INSURANCE STOCK REVIEW INSURANCE STOCKS IN 2017 RETURNS BY SECTOR Index / Sector | # of Companies * Weighted Return Global insurance stocks performed in MSCI ACWI IMI | 9,475 25.50% line with overall world equity markets in 2017, with the IIS aggregate’s Insurance | 226 25.22% 25.2% gain falling just short of the MSCI index’s 25.5% advance. There P&C | 83 19.52% were significant variances, however, with respect to regional, size and L&H | 70 32.55% industry sector performance. Multi-line | 45 23.84% Large Market Capitalization insurance Reinsurance | 17 9.24% issues soared 33% last year, while Small Cap stocks added just 7%. Brokers | 11 22.65% Investors have shown a marked preference for the highly liquid shares 0% 10% 20% 30% 40% of larger companies, including RETURNS BY MARKET CAP insurance companies. Investors also Market Cap | # of Companies showed favor toward international insurers last year. The leading regions Small | 42 6.91% of the world for insurance stocks were Small/Medium | 43 19.77% Africa (+43%), Middle East (+38%) and Europe (+35%), while US issues Medium | 55 24.75% gained just 9%. Medium/Large | 46 23.12% Large | 40 33.33% 0% 10% 20% 30% 40% In terms of industry sectors, the top performing areas of the industry were RETURNS BY MARKET TYPE Life & Health, which gained 33% and Market Type | # of Companies Multi Line, up 24%. Nonlife related US | 92 9.12% issues had lower returns, with Property & Casualty up 20% and Developed | 83 31.27% catastrophe-plagued Reinsurers up only 9%. EM | 51 28.72% 0% 5% 10% 15% 20% 25% 30% 35% Also exhibiting the variation between different types of insurance stocks RETURNS BY REGION was the sharp disparity between Region | # of Companies Market Types. Developed Market insurers gained 31% and Emerging US | 92 9.12% Market issues advanced 29%, while, as Europe | 54 34.70% mentioned earlier, US based insurers were up just 9%. Asia Pacific | 51 25.86% Americas | 14 19.36% Middle East | 10 38.32% Africa | 5 42.64% 0% 10% 20% 30% 40% 50% * Source GLOBAL INSURANCE STOCK REVIEW Industry leaders and laggards for 2017 LEADERS tended to be event driven. Among the BAJAJ FINSERV LTD Asia Pacific 92.4% leaders, Life & Health #1 performer ASR NEDERLAND NV Europe 80.8% HAREL INSURANCE INVESTMENTS & Middle East 76.9% Ping An of China (up 113%) earned the FINA Forbes Magazine title of “Growth TOPDANMARK A/S Europe 70.2% Champion” in part because of its KEMPER CORP US 58.7% massive technology investments. It LAGGARDS SAGA PLC Europe -26.1% now boasts the world’s largest market Multi-line NATIONAL GENERAL HOLDINGS CORP US -20.8% cap of any insurer. TUNE PROTECT GRP Asia Pacific -15.2% AMERICAN INTERNATIONAL GROUP US -6.9% Bajaj Finserv Ltd of India, a Multi Line INC insurer within a nonbank financial SYARIKAT TAKAFUL MALAYSIA BHD Asia Pacific 3.2% corporation, gained 92% as its joint efforts with Allianz were highly LEADERS profitable. ALM BRAND Europe 85.9% EULER HERMES GROUP SA Europe 74.6% At the other end of the performance MERITZ FIRE & MARINE INSURANCE Asia Pacific 73.0% spectrum, the sector laggards all had LTD different problems. P&C insurer HYUNDAI MARINE & FIRE INSURANCE Asia Pacific 68.1% AmTrust of the US revealed massive COFACE SA Europe 66.9% loss reserve shortages and requires a LAGGARDS AMTRUST FINANCIAL SERVICES INC US -61.4% total restructuring. It declined 61% for Property & Casualty MBIA INC US -31.6% the year. Among Life & Health insurers, AMBAC FINANCIAL GROUP INC US -29.0% Tong Yang Life of Korea fell 33%, due to QATAR INSURANCE CO. Middle East -26.5% severe troubles at Chinese parent ASPEN INSURANCE HOLDINGS LTD US -24.7% company Anbang Insurance. Reinsurer LEADERS Maiden Holdings of the US plummeted PING AN INSURANCE (GROUP) CO OF Asia Pacific 112.5% 60%, as a consequence of suffering CH more than its share of property CATTOLICA ASS Europe 93.6% TRUPANION INC US 88.6% catastrophe losses. Multi Line insurer h t l CHINA TAIPING INSURANCE HLDGS Asia Pacific 82.7% Saga plc of the United Kingdom ea LTD H dropped 26%, due to heightened & DISCOVERY LTD Africa 82.5% e f LAGGARDS competition in its core over-50 age i market. L TONG YANG LIFE INSURANCE LTD Asia Pacific -32.6% CITIZENS INC CLASS A US -25.2% GENWORTH FINANCIAL A INC US -18.4% AVIVASA EMEKLILIK VE HAYAT AS Middle East -11.4% INTER GEN INSUR LTD Asia Pacific -10.1% LEADERS THIRD POINT REINSURANCE LTD US 26.8% REINSURANCE GROUP OF AMERICA US 25.6% INC SCOR SE Europe 22.0% LAGGARDS Reinsurance MAIDEN HOLDINGS LTD US -59.6% WMIH CORP US -45.2% VALIDUS HOLDINGS LTD US -12.1% ** Source * Source: MSCI/BBG/BlackRock; number of constituents may include double counting; sector based on GICS and market cap, market type, and region based on MSCI classifications; returns are simple average returns unless otherwise stated and may differ from other data sources ** Source: MSCI/BBG/BlackRock; returns may differ from other data sources due to various considerations such as FX, (reverse) stock splits, dividends, and tax regime; returns in USD.