Property and casualty insurers more exposed to trade war than life insurers, JPM says

The Progressive

03/02/2025 10:30

** J.P. Morgan says a prolonged trade war or spike in
tariffs would be a major negative for property and casualty
insurers, but a manageable event for life insurers
    ** U.S. President Donald Trump on Saturday ordered sweeping
tariffs on Mexico, Canada and China, igniting fears of a trade
war that could hit global growth
    ** Brokerage says higher material costs would be a key
negative for most P&C insurers as Mexico and Canada account for
over half of auto parts imports to the U.S.
    ** Personal lines insurers such as Allstate  ALL.N  and
Progressive  PGR.N  are especially susceptible to sustained high
tariffs on imports from Mexico and Canada - JPM 
    ** JPM says that while a prolonged trade war has negative
implications for life insurers to the extent it pressures equity
markets and the economy, they are more insulated than many other
sectors     
    ** Higher rates would be a tailwind for companies with
elevated exposure to interest rate sensitive businesses and
modest exposure to equity investments
    ** Globe Life's  GL.N  business mix makes it best positioned
to cope with a prolonged trade war among major life insurers -
JPM

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))