U.S. insurers track fall in Treasury yields as macro fears mount

HCI

05/07/2022 17:23

** U.S. insurers track a fall in Treasury yields amid a weak
broader market  US/ 
    ** S&P 500 Insurance Index  .SPXIN  loses ~2.7% 
    ** Travelers Companies Inc  TRV.N , MetLife Inc  MET.N ,
American International Group Inc  AIG.N  and Prudential
Financial Inc  PRU.N  shed between ~3.5% and ~4.2%
    ** Smaller peers Brighthouse Financial Inc  BHF.O , HCI
Group  HCI.N  and Allstate Corp  ALL.N  drop between ~2.7% and
~4.1%
    ** U.S. Treasury yields tumbled on Tuesday as concerns about
economic growth dented risk appetite and increased demand for
the safe haven U.S. debt  urn:newsml:reuters.com:*:nL1N2YM104
    ** Benchmark 10-year yields fall to 2.789%, lowest since
late May 
    ** Insurers, who invest a large chunk of their income, take
a hit from a drop in yields as lower rates typically reduce
their profitability
    ** Wall Street's main indexes fell on Tuesday, with
investors fretting about the possibility of a recession  .N 
    ** Shares in big banks also down on Tuesday  urn:newsml:reuters.com:*:nL4N2YM2L3

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