Aggressive Fed stance weighs on insurer shares

Fednat Holding Co

16/06/2022 16:04

** Shares of major insurers fall in early trade as Fed's
aggressive rate hike stokes recession fears 
    ** S&P 500 Insurers Index  .SPXIN  sheds ~2.3%
    ** Travelers Cos Inc  TRV.N , MetLife Inc  MET.N , American
International Group Inc  AIG.N  and Prudential Financial Inc
 PRU.N  down between 2.3-3.75%
    ** Smaller peers Heritage Insurance Holdings  HRTG.N ,
Brighthouse Financial  BHF.O  and FedNat Holding Co  FNHC.O 
lose between 5.5-8.1% 
    ** U.S. stock indexes also tumbled on Thursday after the
Fed's largest rate increase since 1994  .N 
    ** Insurers remain highly sensitive to macroeconomic
environment even as their profitability is typically boosted
with higher interest rates 
    ** Meanwhile, bank stocks also swooned in early trade giving
back gains of previous session  urn:newsml:reuters.com:*:nL1N2Y318I

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com;))