U.S. insurers gain as Treasury yields jump to three-year highs

Fednat Holding Co

25/03/2022 14:44

** Shares of U.S. insurers climb, tracking a rise in
Treasury yields on market anticipation of higher inflation and
expectations of policy tightening by the Federal Reserve  US/ 
    ** Benchmark 10-year note yields  US10YT=RR  were last up 11
basis points at 2.451%, its highest since at early May 2019 
    ** Two-year note yields  US2YT=RR , which moves in tandem
with interest rate expectations, rose 12.2 basis points at
2.247%, a rate also last seen in early May 2019
    ** Insurers benefit from rising yields as higher interest
rates boost their profitability 
    ** Major insurers Travelers Companies Inc  TRV.N , MetLife
Inc  MET.N , American International Group Inc  AIG.N  and
Prudential Financial Inc  PRU.N  up between 0.73% and 1.84% 
    ** Small and mid-cap insurers also up; Brighthouse Financial
Inc  BHF.O  and Fednat Holding Co  FNHC.O  largest gainers with
a 2.85% and 0.39% surge, respectively
    ** S&P 500 insurance index  .SPXIN  up 1.02% vs 0.38% rise
in broader S&P 500  .SPX  

 (Reporting by Sohini Podder in Bengaluru)
 ((sohini.podder@thomsonreuters.com))