"European Insurance Giants See Share Prices Swoon From COVID-19"
From PYMNTS.com:
The stock prices of Europe’s big commercial insurers are taking it on the chin as claims mount amid the coronavirus pandemic.
The EURO STOXX Insurance Index
is down more than 21 percent as of Monday morning (Aug. 17) year to
date, compared to 11.2 percent for the broader STOXX Europe 600 index.
The
share losses by Europe’s top insurers come amid a jump in claims from
the businesses for which they provide coverage, as firms have been
forced to cancel events and suffered hits to their bottom lines, The Wall Street Journal reported.
The
insurers have also seen their own investment portfolios take a hit amid
stock market volatility, as their solvency ratios – a key measure of
their financial strength – are also falling, the Journal reports.
Stock
price volatility is also up dramatically for Europe’s largest insurers,
with annualized volatility hitting 48.3 percent for the year to date as
of the end of July, according to the EURO STOXX Insurance Index. That
compares to a three-year average of 24.4 percent.
European
insurance stocks have also faced higher volatility than other European
companies, with annualized volatility on the Euro STOXX index hitting
36.4 percent, up from a three-year average of 19.5 percent....
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