By Carlos Pallordet
Dec 1 - (The Insurer) - U.S. P&C (re)insurance shares led November gains, while Euro-listed peers also posted advances – except for London-listed carriers – against a backdrop of broadly flat global equity markets.
European Stoxx 600 Insurance index rose 2.8% in November, outperforming broader Stoxx 600 which gained 0.8% gain
S&P 500 Insurance index surged 5.1% contrasting with the broader S&P 500 which edged up just 0.1%
Allianz and FBD Holdings topped gains in Europe, followed by Talanx (6.2%) and Scor (5.7%)
Lemonade (+30.0%), Accelerant (+25.4%) and Heritage (+22.9%) led the gains among US carriers
All brokers, except for AJG (-0.7%), ended in positive territory in November, with The Baldwin Insurance Group rebounding 29.0%
Global equity markets largely stalled in November, with most major indices posting flat or marginal gains as investors weighed mixed economic signals, persistent inflation concerns and geopolitical uncertainty.
While optimism around potential U.S. monetary easing provided some support, the recovery trend seen since mid-year showed signs of fatigue.
In the U.S., the S&P 500 edged up just 0.1%, marking its seventh consecutive monthly gain but signalling a sharp slowdown from October’s advance. Broader market performance was muted amid concerns over stretched valuations in AI-driven technology stocks and rising capital expenditure uncertainties.
However, insurance stocks stood out as a bright spot. The S&P 500 insurance benchmark surged 5.1%, its strongest monthly performance since February, driven by solid earnings and favourable pricing trends in property and casualty lines.
European equities posted modest gains overall, with the Stoxx Europe 600 rising 0.8%, supported by defensive sectors and optimism around stable monetary policy.
Among regional indices, the UK’s FTSE 100 and FTSE 250 both ended flat, as domestic economic uncertainty and cautious corporate guidance weighed on sentiment. In France, the CAC 40 closed unchanged, while Germany’s DAX slipped 0.5%, held back by weak industrial output and soft business confidence.
Insurance stocks again outperformed, with the Stoxx 600 insurance index climbing 2.8%, reflecting good underwriting results and capital strength across major carriers.
Fifteen of the 21 listed European (re)insurers tracked by The Insurer advanced in November, with five of them posting gains of more than 5%.
Allianz and FBD Holdings led the cohort, each rising 6.9%.
Allianz beat analyst expectations with a 12.6% rise in third-quarter operating profit, driven by strong performance in its P&C division, and raised its full-year earnings guidance for 2025.
Talanx climbed 6.2% for the month, after lifting its 2025 profit forecast on the back of a 23% rise in net income for the first nine months of the year.
Scor shares rebounded 5.7% in November, reversing part of October’s 12.4% decline , which followed third-quarter results that sparked investor concerns over underlying trends.
Norwegian insurer Protector Forsikring also gained 5.5%, rebounding from a 7.0% decline in the previous month.
German reinsurer Hannover Re, a subsidiary of Talanx Group, also lifted its 2025 earnings guidance, citing strong business performance in the first nine months of the year, prompting a 4.9% monthly gain in its shares.
At the other end of the spectrum, Beazley was the most significant faller in the European cohort, with shares dropping 14.3% in November after the publication of its third-quarter results, which saw insurance written premiums up only 1% for the first nine months of the year.
Other London-listed shares were among the fallers of the month.
Lancashire shares ended the month 12.4% lower, a drop that reflects the stock going ex-dividend on 13 November following the company’s announcement of a $0.75 special dividend per common share, payable on 12 December.
Admiral lost 3.2% while Aviva and Hiscox each declined 2.5%.
THE PICTURE IN THE US
Across the Atlantic, most P&C insurance stocks advanced in November, following a mixed performance in the previous two months which had seen several large-cap (re)insurers ending in negative territory.
The sector-specific S&P 500 insurance rose 5.1%, partially rebounding from its 8.0% decline in October.
Out of 46 carriers tracked by The Insurer, 38 advanced in November, with 28 surging more than 5%.
Lemonade led the gains for the month, ending 30.0% higher, after the insurtech beat expectations for its third-quarter results and raised its full-year revenue forecast.
Shares in newly listed Accelerant surged 25.4% in November after posting a third-quarter earnings beat. This marked a sharp reversal from October’s 22.0% decline, which followed drops of 25.7% in September and 27.2% in August.
Heritage Insurance reported an improved combined ratio of 72.9% for the third quarter and a strong capital position which allowed it to reinstate share buybacks, prompting shares to rise by 22.9%.
Mercury General also delivered a third-quarter earnings beat, with shares rising 20.5% for the month.
Among large-cap insurers, Progressive rose 11.2%, paring back some of its losses after falling 16.6% in October.
Allstate delivered solid underwriting results for the third quarter, recovering 11.1% in November after losing 10.8% in the previous month.
Other notable gainers among large cap insurers were The Hartford, Travelers and Berkshire Hathaway, with shares up 10.3%, 9.0% and 7.6% respectively.
Among the few fallers of the month, shares in HCI Group saw the biggest drop, losing 12.9% in November, but still standing as the third largest gain in the cohort on a year-to-date basis.
American Integrity fell 11.3% while insurtech Hippo was down 10.9%.
BROKERS’ SHARES REBOUND
Shares in intermediaries rebounded in November, though at a more moderate pace than U.S. carriers.
The Baldwin Insurance Group was an exception, as it shares skyrocketed 29.0%, following strong third quarter results. Shares in the intermediary had been in a downward trajectory since mid-year, with a fall of 34.1% decline in Q3 and 21.7% in October.
Ryan Specialty rose by 6.0% followed by Aon and Marsh McLennan, which rebounded 3.9% and 3.0% respectively.
WTW recovered 2.5% after losing 9.4% in October despite beating Q3 earnings estimates on strong organic growth and margin expansion.
AJ Gallagher was the only faller of the month, sliding 0.7%. In October, it had seen the second largest fall on the month, with shares down 19.5% after the broker reported third-quarter organic growth of 4.8% across its combined brokerage and risk management segments, a sequential slowdown from 5.4% in Q2 2025 and below the 6% pace in Q3 2024.
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