How EVs, High-Tech Vehicles Are Fueling Surge In Insurance Stocks
Portfolio Pulse from Piero Cingari
Insurance company stocks have outperformed the S&P 500 in 2024, with the iShares U.S. Insurance ETF (IAK) rising 5% in January. The surge is attributed to the increasing costs of motor vehicle insurance, which have soared by 20.3% over the past year. The complexity and costliness of repairing high-tech vehicles, especially electric vehicles (EVs), are driving up insurance rates. EVs require more expensive repairs and longer repair times compared to traditional vehicles. The article lists top-performing insurance stocks year-to-date included in the iShares U.S. Insurance ETF.
January 25, 2024 | 6:49 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
SPY, representing the S&P 500, saw a 3% rise in January, which was outpaced by the insurance sector. The ETF may not directly benefit from the specific surge in insurance stocks.
While SPY includes a broad range of sectors, the specific surge in insurance stocks may not have a significant direct impact on SPY's performance.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Allstate Corporation (ALL) is one of the top-performing insurance stocks, with a year-to-date return of 12.56%. The trend in rising insurance costs could continue to favor ALL.
ALL's performance is positively correlated with the insurance industry's growth, which is currently on an upward trend due to higher vehicle repair costs.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
IAK has seen a 5% increase in January, outperforming the S&P 500. The rise in insurance costs, particularly for high-tech and EVs, is likely to continue benefiting the ETF.
IAK's performance is directly linked to the insurance industry, which is experiencing a surge due to higher repair costs for modern vehicles.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Kemper Corporation (KMPR) has a notable year-to-date return of 27.24%. The company's stock may continue to benefit from the overall growth in the insurance sector.
KMPR's stock is likely to be positively impacted by the insurance industry's performance, which is currently experiencing a surge.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Kinsale Capital Group, Inc. (KNSL) has seen a 19.40% return year-to-date. The company could see continued growth if insurance costs keep rising.
KNSL's stock performance is likely to be positively influenced by the rising costs in the insurance sector, especially with the current trend.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Mercury General Corporation (MCY) has a year-to-date return of 9.72%. The company's stock may benefit from the increasing insurance costs.
MCY's stock is expected to be positively affected by the insurance industry's growth, driven by higher vehicle repair costs.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Oscar Health, Inc. (OSCR) leads with a 29.13% year-to-date return. The rising insurance costs could continue to positively impact OSCR's stock.
OSCR's stock may continue to see positive momentum as the insurance sector grows, particularly with the current trend in vehicle insurance costs.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Progressive Corporation (PGR) has an 11.63% return year-to-date. The trend in insurance costs could favor PGR's short-term performance.
PGR's stock is likely to benefit from the insurance industry's surge, especially with the increase in vehicle insurance costs.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Primerica, Inc. (PRI) has a 9.84% year-to-date return. The company's stock may see continued growth if the insurance sector maintains its momentum.
PRI's stock performance is likely to be positively impacted by the insurance industry's growth, which is currently experiencing a surge.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Travelers Companies, Inc. (TRV) has a 10.56% return year-to-date. The company could benefit from the rising insurance costs trend.
TRV's stock is expected to be positively affected by the insurance industry's growth, driven by higher vehicle repair costs.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
United Fire Group, Inc. (UFCS) has a 12.77% year-to-date return. The stock may continue to grow with the insurance sector's positive trend.
UFCS's stock is likely to be positively influenced by the rising costs in the insurance sector, especially with the current trend.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
W. R. Berkley Corporation (WRB) has seen a 17.10% return year-to-date. The company's stock may benefit from the increasing insurance costs.
WRB's stock is expected to be positively affected by the insurance industry's growth, driven by higher vehicle repair costs.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80