U.S. insurers gain as Treasury yields climb, Wall Street rebounds

Fednat Holding Co

13/05/2022 17:38

** Shares of insurers track a rise in U.S. Treasury yields
and Wall Street's main indexes  US/   .N 
    ** S&P 500 Insurance Index  .SPXIN  adds ~1.6% 
    ** Treasury yields rose on Friday, reversing the week's
rally in bond prices driven by the largest weekly inflows since
COVID-19 slammed markets in March 2020  urn:newsml:reuters.com:*:nL2N2X518Y
    ** Travelers Companies Inc  TRV.N , MetLife Inc  MET.N ,
American International Group Inc  AIG.N  and Prudential
Financial Inc  PRU.N  up between ~0.2% and ~2.1% in afternoon
trade 
    ** Smaller insurance firms Brighthouse Financial  BHF.O  and
FedNat Holding Company  FNHC.O  add ~6% and 6.9% respectively  
    ** Insurers benefit from rising yields as higher interest
rates typically boosts their profitability 
    ** Two-year  US2YT=RR  Treasury yield, which typically moves
in step with interest rate expectations, was up 8.1 basis points
at 2.603%
    ** Yield on benchmark 10-year Treasury notes  US10YT=RR 
rose 9.4 basis points to 2.911%
    ** Meanwhile, growth stocks led a rebound in Wall Street's
main indexes on Friday in a week marred by worries about the
worsening outlook for economic growth  urn:newsml:reuters.com:*:nL3N2X530A
   

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