U.S. insurers rise as risk sentiment improves

Heritage Insurance Holdings

23/05/2022 17:16

** Shares of U.S. insurers rise following three consecutive
sessions of losses, tracking Treasury yields that climb as risk
sentiment improves after a tumultuous week  US/ 
    ** Major insurers MetLife Inc  MET.N , American
International Group Inc  AIG.N , Travelers Companies Inc  TRV.N 
and Prudential Financial Inc  PRU.N  up between 2.46% and 4.8%
    ** Mid- and small-cap insurers Allsate Corp  ALL.N , Chubb
Ltd  CB.N , Brighthouse Financial Inc  BHF.O  and Heritage
Insurance Holdings Inc  HRTG.N  gain between 0.38% and 4.09%
    ** Investors are looking forward to minutes of a Fed meeting
this week and new supply of short- and intermediate-dated debt
instruments may boost markets 
    ** Benchmark 10-year note yields  US10YT=RR  rise as much as
7.7 bps at 2.8641%
    ** Insurers benefit from a rise in yields as a hike in
interest rates typically leads to greater profitability for them
    ** So far this year, S&P 500 Insurance index  .SPXIN  has
fallen 3.14% vs 16.64% slump in broader S&P 500  .SPX 
    ** Stocks of U.S. banks also rose on Monday  urn:newsml:reuters.com:*:nL3N2XF2S7,
lifting S&P 500 and Dow  .N 
    

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