4 Insurance Stocks That Outperformed S&P 500 Year to Date
The insurance industry, like any other industry, faces operational challenges due to the coronavirus pandemic. It has lost 19.8% since the beginning of the year, compared to the 3.3% decline in the Z&S 500 Composite
In fact, insurers have indicated that their second-quarter results are largely impacted by coronavirus restrictions.
To stimulate the economy to varying degrees of easing, hindering commercial and industrial activity and reducing demand, the Federal Reserve cut interest rates to 0 to 0.25% in March. It announced plans to increase its holdings of treasury and mortgage-backed residential and commercial agency securities to ensure credit flow to households and businesses.
An interest rate close to zero is a problem for long-term property and casualty insurers and life insurers (whose returns are usually derived from the spread between their investment returns and what they credit as interest on insurance policies and products). Unemployment and vacation also affected insurers' new sales.
Although there have recently been signs of improvement, such as 2.5 million new jobs in May, an unemployment rate that has dropped to 13.3% (from 14.7% in April) and an improvement in oil prices, Fed chairman Powell said : "The report was a welcome surprise, but only a monthly data '.
Insurers who crushed the S & P 500
Despite adversity, better pricing, risk position growth (increasing the number and value of insurable interests), a less active disaster environment, a stable policyholder surplus, a pause in long-term life insurance sales and changes to the product portfolio, using the technology from home To provide customers with uninterrupted service has helped insurers master the challenging operating environment.
Although the insurance industry and the benchmark index have declined since the beginning of the year, there are some insurers that have gained more than 10% in the same period.
EverQuote EVER operates an online marketplace for insurance purchases in the United States. The company's shares have risen by 77.4% since the beginning of the year. In addition, this Zacks Rank # 2 (Buy) insurer has an impressive growth value of A. The Zacks Consensus estimate for 2020 and 2021 shows growth of 21.4% and 84.6% compared to the previous year.
The Kinsale Capital Group KNSL offers accident and property insurance products in the USA. The company's shares have risen by 49.8% since the beginning of the year. In addition, this Zacks Rank 3 (Hold) insurer has an impressive A growth rate. The Zacks Consensus estimate for the 2020 and 2021 results shows growth of 21.6% and 8%, respectively, compared to the previous year.
Palomar Holdings PLMR offers special insurance. The shares of this Zacks Rank # 2 insurer have risen 61.7% since the beginning of the year. In addition, the company has a favorable growth value of B. The Zacks consensus estimate for 2020 and 2021 shows growth of 20.8% and 18.3% compared to the previous year.
The Progressive Corporation PGR offers personal and commercial auto insurance, home insurance, and other specialty property damage and related services, primarily in the United States. The company's shares have risen by 11.7% since the beginning of the year. In addition, this Zacks rank 3 insurer has an impressive VGM value of A. The consensus estimate for 2020 has risen 9% north over the past 60 days.
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The Progressive Corporation (PGR): Report on Free Stock Analysis
EverQuote, Inc. (EVER): Free stock analysis report
Kinsale Capital Group, Inc. (KNSL): Free stock analysis report
Palomar Holdings, Inc. (PLMR): Report on Free Stock Analysis
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