Dernières nouvelles pour iShares U.S. Insurance ETF (ARCA:IAK)

iShares U.S. Insurance ETF

Financial Services

The Fund seeks to track the investment results of the Dow Jones U.S. Select Insurance Index (the Underlying Index), which measures the performance of the insurance sector of the U.S. equity market, as defined by S&P Dow Jones Indices LLC (the Index Provider or SPDJI). The Underlying Index may include large-, mid- or small-capitalization companies. As of March 31, 2024, a significant portion of the Underlying Index is represented by securities of companies in the insurance industry or sector. The components of the Underlying Index are likely to change over time.

Progressive Corp.

Chubb Ltd Common Stock Usd 24.15

American International Gr

Travelers Cos. Inc. (The)

MetLife Inc

Prudential Financial Inc.

Aflac Inc.

Allstate Corp.

Hartford Financial Services Group Inc.

iShares US Insurance ETF

Billionaire entrepreneur Mark Cuban has proposed a bold plan to revolutionize the U.S. healthcare system, eliminating traditional insurance premiums and introducing transparent pricing.
What Happened: Cuban&#8217;s recent proposal, posted on social media platform X, comes amid growing frustration with insurance clawbacks and escalating costs, spotlighted by a viral video from an American surgeon exposing insurer malpractices.
Cuban's plan allows patients to select cash-pay providers who disclose prices upfront. "I would allow patients to pick whatever cash pay provider that honors their published price," he wrote, proposing that patients pay what they can afford, with taxpayers covering the rest.
Repayments would be deducted from paychecks, capped at 10%, with unpaid debt forgiven after 15 years. "There would be zero premiums to insurance companies," he added, replacing them with a $400–500 monthly family re-insurance fee, capping annual expenses at $50,000.
The proposal also targets Pharmacy Benefit Managers (PBMs), aiming to eliminate their role in drug pricing. "No PBMs. No health care from employers," Cuban stated, drawing on his success with Cost Plus Drugs, which has slashed prescription costs by up to 80% since 2022.
Medicare and Medicaid would adopt net pricing for medications, enhancing affordability.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Still have work to do on the numbers, and this is off the top of my head. But I would allow patients to pick whatever cash pay provider that honors their published price . Have the patient commit to what they can afford to pay , (with documentation ) , and have taxpayers finance… <a href="https://t.co/NOcX55J6pJ">https://t.co/NOcX55J6pJ</a>
&mdash; Mark Cuban (@mcuban) <a href="https://twitter.com/mcuban/status/1934834421225672999?ref_src=twsrc%5Etfw">June 17, 2025</a></blockquote>
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See Also: <a href="https://www.benzinga.com/markets/commodities/25/06/45948096/exxon-mobil-chevron-occidental-petroleum-in-focus-as-expert-says-us-economy-is-far-less-sensitive-to-an-oil-shock-amid-israel-iran-conflict" target="_blank" rel="noreferrer noopener">Exxon Mobil, Chevron, Occidental Petroleum In Focus As Expert Says ‘US Economy Is Far Less Sensitive To An Oil Shock' Amid Israel-Iran Conflict</a>
Why It Matters: Cuban has been a critic of the insurance sector for quite some time. In a recent appearance at the Stanford University Department of Medicine, he laid out exactly how he thinks insurance companies are rigging the system.
He argues that <a href="https://www.benzinga.com/news/topics/25/05/45711157/mark-cuban-says-taking-low-premium-high-deductible-plans-is-great-for-insurance-companies-you-know-who-its-not-good-for-you-guys">insurers manipulate plans annually</a>, prioritizing low premiums while subtly increasing out-of-pocket costs. This steers patients toward seemingly affordable high-deductible plans that prove disastrous during illness. 
"Depending on what's going on in the economy, those patients, particularly as they skew a little younger or a little poorer, take low-premium, <a href="https://www.benzinga.com/news/25/02/43985233/mark-cuban-calls-deductibles-the-biggest-problem-in-healthcare-system-needs-to-be-redesigned">high-deductible plans</a>," Cuban said. "Which is good for the insurance companies. You know who it's not good for? You guys." 
By "you guys," Cuban meant the doctors and hospitals who end up taking on the financial risk. If a patient can&#8217;t pay the deductible, the insurer has already gotten its money, but the provider hasn&#8217;t. "And you also take on the brand and reputational risk… Did you cause the problem? No,&#8221; Cuban added.
Price Action: Here&#8217;s how insurance companies&#8217; linked exchange-traded funds have been performing this year. These ETFs outperformed the S&amp;P 500 and the S&amp;P Insurance Select Industry indices, which have risen by 2.80% and 3.84% on a year-to-date basis, respectively. 
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<table class="has-fixed-layout">
<tbody>
<tr>
<td>ETFs</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>SPDR S&amp;P Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KIE#NYSE">KIE</a>)</td>
<td>3.92%</td>
<td>17.36%</td>
</tr>
<tr>
<td>iShares US Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>)</td>
<td>5.42%</td>
<td>17.52%</td>
</tr>
<tr>
<td>Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>)</td>
<td>6.25%</td>
<td>19.38%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, fell in premarket on Tuesday. The SPY was down 0.53% at $599.51, while the QQQ declined 0.56% to $531.30, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pr</a>o data.
Read Next:
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Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. 
Photo Courtesy: Kathy Hutchins On Shutterstock

News

Insurance

iShares Dow Jones US Insurance Index Fund

KBWP

Mark Cuban Floats Bold Healthcare Plan: 'Zero Premiums To Insurance Companies' With A Cash-Pay Revolution

Brown &amp; Brown Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRO#NYSE">BRO</a>) has <a target="_blank" href="https://www.benzinga.com/pressreleases/25/06/g45855894/brown-brown-inc-enters-into-agreement-to-acquire-accession-risk-management-group" rel="noreferrer noopener">agreed to acquire</a> RSC Topco Inc., the parent company of Accession Risk Management Group Inc., for $9.825 billion in cash. The deal, one of the insurance industry&#8217;s largest this year, is expected to close in the third quarter of 2025.
The agreement will integrate two major insurance firms, Risk Strategies and One80 Intermediaries, into Brown &amp; Brown&#8217;s operations, broadening its access to specialty markets and expanding its footprint across North America.
Founded in 1997, Accession is the ninth-largest private insurance brokerage in the U.S., employing more than 5,000 people and generating approximately $1.7 billion in adjusted revenue for 2024.
Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-stock-ratings/analyst-color/25/06/45835942/self-driving-cars-may-slash-insurance-costs-50-by-2040-challenge-traditional-insurers-goldman-sachs" rel="noreferrer noopener">Self-Driving Cars May Slash Insurance Costs 50% By 2040, Challenge Traditional Insurers: Goldman Sachs</a>
The firm is known for its specialized services and customer-focused approach. Its subsidiaries, Risk Strategies and One80 Intermediaries, bring significant retail, wholesale, and program management expertise.
J. Powell Brown, CEO of Brown &amp; Brown, called the merger a strategic alignment of strengths that will expand the firm&#8217;s reach and offerings. &#8220;We&#8217;re confident that together, we can enhance customer relationships and create long-term growth,&#8221; Brown said.
Once finalized, Risk Strategies will join Brown &amp; Brown&#8217;s Retail segment, while One80 Intermediaries will become part of a newly created Specialty Distribution segment. Leadership roles will include executives from both firms, Steve Boyd, Chris Walker, and Matt Power, as Brown &amp; Brown consolidates its program and wholesale brokerage operations.
The acquisition is expected to be financially accretive to Brown &amp; Brown&#8217;s adjusted diluted net income per share for 2024 and aims to deliver significant shareholder value through revenue and cash flow growth, the company said in a press release.
The deal also positions the company to expand its portfolio of niche insurance solutions and strengthen collaboration with carrier partners. As of March 31, 2025, Brown &amp; Brown held cash and cash equivalents of <a target="_blank" href="https://www.benzinga.com/pressreleases/25/04/g45054319/brown-brown-inc-announces-first-quarter-2025-results-including-total-revenues-of-1-4-billion-an-in" rel="noreferrer noopener">$669 million</a>.
Related ETFs: iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>), SPDR S&amp;P Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KIE#NYSE">KIE</a>).
Price Action: BRO shares are trading higher by 0.12% to $107.99 premarket at last check Tuesday.
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/25/06/45858626/citigroup-rolls-out-summer-remote-work-option-for-employees-while-rivals-argue-you-cant-learn-working-from-your-basement" target="_blank" rel="noreferrer noopener">Citigroup Rolls Out Summer Remote Work Option For Employees, While Rivals Argue&#8217; You Can&#8217;t Learn Working From Your Basement&#8217;</a></li>
</ul>
Photo via Shutterstock

Brown & Brown To Absorb Ninth-Largest Private Broker In $9.83 Billion Deal

The Travelers Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>), on Tuesday, entered into a definitive agreement to divest its personal insurance and most of its commercial insurance operations in Canada to Definity Financial Corporation (DFY) <a target="_blank" href="https://www.benzinga.com/pressreleases/25/05/b45630828/travelers-to-sell-its-canadian-personal-insurance-business-and-majority-of-its-canadian-commercial" rel="noreferrer noopener">for around $2.4 billion</a>.
The deal, valued at 1.8x book value after accounting for $0.8 billion in excess capital being repatriated tax-efficiently, allows Travelers to retain its leading Canadian surety business.
The transaction is expected to close in the first quarter of 2026, pending regulatory approvals and customary conditions.
Also Read: <a href="https://www.benzinga.com//node/44837851">Travelers Tops Q1 Estimates On Strong Premium Growth, Profit Hit By Wildfire Losses</a>
Travelers plan to allocate around $0.7 billion of the net proceeds from the sale toward additional share repurchases in 2026, with the remaining funds reserved for ongoing operations and general corporate purposes.
The transaction, along with the buybacks, is expected to be slightly accretive to earnings per share over the next several years.
Travelers Chairman and CEO Alan Schnitzer stated that the evolution of the Canadian market made Definity a natural long-term owner for the business, and the transaction reflects Travelers&#8217; commitment to disciplined capital allocation and long-term value creation.
In April, Travelers reported first-quarter&nbsp;sales of&nbsp;$11.81 billion&nbsp;(+5% year over year), outpaced the analyst consensus estimate of&nbsp;$10.81 billion, and adjusted EPS of&nbsp;$1.91,&nbsp;beating <a target="_blank" href="https://www.benzinga.com/news/earnings/25/04/44837851/travelers-tops-q1-estimates-on-strong-premium-growth-profit-hit-by-wildfire-losses" rel="noreferrer noopener">the street view of&nbsp;$0.80</a>.
Investors can gain exposure to the stock via&nbsp;Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>) and Invesco KBW Property &amp; Casualty Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>).
Price Action: TRV shares closed up 1.79% at $275.88 on Tuesday.
Read Next:
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<li><a href="https://www.benzinga.com//node/45196561" target="_blank" rel="noreferrer noopener">Loews Posts Mixed Q1 Results: Pipeline Strength Offsets Insurance And Hotel Weakness</a></li>
</ul>
Image via Shutterstock

Equities

Large Cap

Asset Sales

Travelers Sells Most Of Canada Operations To Definity For $2.4 Billion

Travelers Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>) shares were trading higher in <a href="https://www.benzinga.com/pressreleases/25/04/b44834069/travelers-reports-first-quarter-net-income-of-395-million-and-core-income-of-443-million" target="_blank" rel="noreferrer noopener">the premarket session on Wednesday</a> as sales of $11.81 billion (+5% year over year) outpaced the analyst consensus estimate of $10.81 billion.
The company reported&nbsp;first-quarter&nbsp;adjusted EPS of&nbsp;$1.91, <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">beating the street view of&nbsp;$0.80</a>.
Due to higher catastrophe losses, core income decreased 60% Y/Y to $443 million.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/02/43828736/travelers-companies-scale-and-analytical-advantages-make-it-attractive-says-analyst" rel="noreferrer noopener">Travelers Companies&#8217; Scale And Analytical Advantages Make It Attractive, Analyst Says</a>
In particular, the company witnessed catastrophe losses of $2.266 billion pre-tax, owing to the California wildfires in January 2025.
Net realized investment losses stood at $61 million pre-tax ($48 million after-tax), compared to gains of $35 million pre-tax ($27 million after-tax) in the prior year quarter.
Net written premiums rose 3% Y/Y&nbsp;to&nbsp;$10.515 billion&nbsp;in the quarter under review.
In particular, Business Insurance net written premiums rose 2% Y/Y to a record $5.7 billion, despite a 4-point drag from the enhanced casualty reinsurance program booked upfront.
Bond &amp; Specialty Insurance segment net premiums growth of 6% Y/Y to $1.0 billion, driven by 89% retention in management liability and 13% growth in the surety segment.
Personal Insurance segment net premiums grew 5% Y/Y to $3.8 billion, supported by solid renewal premium growth, especially in Homeowners.
Net investment income increased 10% Y/Y pre-tax in the quarter. Adjusted book value per share by 11% Y/Y to $138.99 in the quarter.
Buyback: The company repurchased 1.4&nbsp;million shares during the&nbsp;quarter&nbsp;at an average price of&nbsp;$252.68&nbsp;per share for a total cost of&nbsp;$358&nbsp;million.&nbsp;
As of March 31, 2025, the company had $4.790 billion of capacity under its share repurchase authorizations.
Dividend: The company declared a regular quarterly dividend increase of 5% to&nbsp;$1.10 per share.
The dividend is payable on June 30, 2025, to shareholders of record at the close of business on June 10, 2025.
Alan Schnitzer, chairman and CEO said, &#8220;Our trailing twelve-month core return on equity of 14.5% reflects the strong momentum we have at our backs as we benefit from investments we have made over a number of years.&#8221;
Investors can gain exposure to the stock via Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>) and iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>).
Price Action: TRV shares are trading higher by 2.14% to $255.00 premarket at the last check on Wednesday.
Read Next:
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</ul>
Photo: Shutterstock

Earnings

Movers

Travelers Tops Q1 Estimates On Strong Premium Growth, Profit Hit By Wildfire Losses

Billionaire entrepreneur and Dallas Mavericks owner Mark Cuban has called the U.S. healthcare system, &#8220;f&#x2A;&#x2A;&#x2A;&#x2A;d up&#8221; while highlighting deductibles as &#8220;the biggest problem in healthcare,&#8221; which are designed by insurance companies.
What Happened: Cuban explained in his latest X post that insurance companies design plans with higher deductibles and lower premiums leaving the work of bill collection in the hands of doctors and hospitals.
A deductible is the amount of money paid by the patient before their insurance company pays for the covered expenses as chosen under their policy.
&#8220;Often we choose higher deductibles because we are healthy or because we can only afford the lowest premium plan,&#8221; adds Cuban, inferring that if higher deductibles were left unpaid hospitals end up becoming &#8220;bill collectors,&#8221; &#8220;DESPITE HAVING NO SAY in the (insurance) plans&#8221; and deductibles bracket that patients choose.
"That is one fucked up system that needs to be redesigned," adds Cuban.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Want to know one of the biggest problems in healthcare? Deductibles. Deductibles are defined by the plans the insurance companies design. Then they are approved to be offered by the feds or employers. Then we the people decide what deductible we want when we choose our plans.…
&mdash; Mark Cuban (@mcuban) <a href="https://twitter.com/mcuban/status/1894236347847618571?ref_src=twsrc%5Etfw">February 25, 2025</a></blockquote>
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See Also: <a href="https://www.benzinga.com/government/regulations/25/02/43912631/apple-forced-to-kiss-the-ring-expert-questions-whether-trump-pushed-the-iphone-maker-for-500-billion-investment">Apple &#8216;Forced To Kiss The Ring&#8217;? Expert Questions Whether Trump Pushed The iPhone Maker For $500 Billion Investment</a>
Why It Matters: Cuban&#8217;s tweets shed light on the growing problem of high deductibles in the U.S. healthcare system.
The "higher deductibles" turn out to be out-of-pocket costs which create a barrier to accessing care, potentially leading to delayed treatment, worsening health conditions, and mounting medical debt.
Cuban concluded his post by calling out insurance company practices that contribute to healthcare costs, including &#8220;delay tactics&#8221; and denials of claims. He called for a redesigned system for patient well-being and fairness for healthcare providers.
Here is a list of Insurance sector ETFs that investors could look at:
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>ETFs</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>SPDR S&amp;P Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KIE#NYSE">KIE</a>)</td>
<td>3.30%</td>
<td>17.59%</td>
</tr>
<tr>
<td>iShares US Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>)</td>
<td>3.66%</td>
<td>17.32%</td>
</tr>
<tr>
<td>Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>)</td>
<td>-0.33%</td>
<td>12.48%</td>
</tr>
</tbody>
</table>
</figure>
Price Action: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, fell on Monday. SPY declined 0.46% to $597.21, and QQQ plunged 1.18% to $519.87, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data
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<li><a href="https://www.benzinga.com/25/02/43906366/warren-buffetts-berkshire-boosts-bets-on-five-japanese-companies-admiration-has-consistently-grown-says-oracle-of-omaha-in-letter-to-shareholders">Warren Buffett&#8217;s Berkshire Boosts Bets On 5 Japanese Companies: Oracle Of Omaha Says Admiration &#8216;Has Consistently Grown&#8217;</a></li>
</ul>
Photo courtesy: Shutterstock

Sector ETFs

Markets

ETFs

Mark Cuban Calls Deductibles 'The Biggest Problem' in Healthcare: 'System…Needs To Be Redesigned'

American International Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIG#NYSE">AIG</a>) shares are trading lower today. On Tuesday, the company reported that the fourth quarter adjusted EPS of&nbsp;$1.30&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/25/02/b43640648/aig-reports-outstanding-fourth-quarter-and-full-year-2024-results" rel="noreferrer noopener">exceeded the consensus of $1.23</a>.
Piper Sandler analyst Paul Newsome writes that results came in above consensus but slightly below his estimates due to weaker <a target="_blank" href="https://www.benzinga.com/quote/aig/analyst-ratings" rel="noreferrer noopener">underwriting results and higher expenses</a>.
However, catastrophe losses were in line with his expectations and better than consensus, adds the analyst.
Notably, he notes that AIG reported a 92.5% combined ratio, better than consensus (93.3%) but slightly above his estimate of 91.5%.
Despite some segment noise, the company avoided broader casualty issues, adds the analyst.
Overall, Newsome says investors will view the results as better than expected.
Keefe, Bruyette &amp; Woods analyst Meyer Shields notes that AIG&#8217;s fourth-quarter operating EPS beat their $1.09 estimate, led by stronger core and catastrophe loss ratios, reserve releases and investment income, partially offset by higher expenses and taxes.
The analyst expects shares to gain on the EPS beat and reaffirmed the 10%+ ROE target for 2025, though gains may be tempered by a higher-than-expected expense ratio.
Investors can gain exposure to the stock via Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>) and iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>).
Price Action: AIG shares are down 1.49% at $74.81 at the last check Wednesday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/25/01/42933396/californias-10-trillion-property-market-faces-unprecedented-threat-from-wildfires" target="_blank" rel="noreferrer noopener">California&#8217;s $10 Trillion Property Market Faces Unprecedented Threat From Wildfires</a></li>
</ul>
Photo: Shutterstock

Analysts See AIG's Q4 As Positive, But Expense Ratio Limits Stock Gains

California-based property and casualty insurance stocks and exchange-traded funds are in focus as the Los Angeles <a href="https://www.benzinga.com/25/01/42899953/five-dead-in-los-angeles-wildfires-utilities-face-scrutiny">wildfires</a> have wreaked havoc and ruined over 10,000 structures.
What Happened: As five fires continue to burn LA County, the Eaton and Palisades fires have caused significant damage, destroying over 10,000 structures, including homes, businesses, and smaller buildings, <a href="https://www.usatoday.com/story/news/nation/2025/01/09/los-angeles-california-wildfires-thursday-live-updates/77560180007/">reported </a>USA Today. The County of Los Angeles Department of Medical Examiner said that 10 fire-related deaths have been reported. 
Allstate Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALL#NYSE">ALL</a>) and Travelers Companies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>) are prominent California-based property insurers. As <a href="https://www.benzinga.com/25/01/42899028/la-wildfire-damages-estimated-above-52-billion-california-property-insurance-crisis">reported</a> by Benzinga, many homes in the affected areas are insured by the state-backed insurer of last resort, the California FAIR Plan.
California&#8217;s insurance market was already in crisis before the recent wildfires. Insurers withdrew from the state due to mounting losses from increasingly frequent and severe fires. This issue was highlighted by actor James Woods, who <a href="https://twitter.com/RealJamesWoods/status/1876875152236941482">revealed </a>that his neighborhood recently lost its insurance coverage.
See Also: <a href="https://www.benzinga.com/markets/25/01/42902506/charlie-mungers-top-pick-costco-reports-strong-december-sales-analysts-expect-a-7-jump-in-january">Charlie Munger&#8217;s Top Pick Costco Reports Strong December Sales: Analysts Expect A 7% Jump In January </a>
Why It Matters: AccuWeather <a href="https://www.accuweather.com/en/blogs-webinars/california-wildfires-52-57b-damage-estimate-accuweather-report/1731718">estimates</a> the economic toll of the Southern California wildfires at a staggering $52 billion to $57 billion. This figure includes damage to property and the disruption of daily life. Chief Meteorologist Jonathan Porter warns that this could become the most devastating wildfire in California history if the fires continue to spread.
The ETFs holding Allstate and Travelers include iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>), Invesco Dow Jones US Insurance UCITS ETF Acc (LON: INSU), and Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>). These two stocks are part of the top five holdings of IAK, INSU, and KBWP, and they will be in focus as markets open on Friday.
Following are the weights of these stocks in the mentioned ETF.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>ETFs</td>
<td>Allstate Corp (Weight)</td>
<td>Travelers Companies (Weight)</td>
</tr>
<tr>
<td>iShares U.S. Insurance ETF</td>
<td>6.33%</td>
<td>5.30%</td>
</tr>
<tr>
<td>Invesco Dow Jones US Insurance UCITS ETF Acc</td>
<td>5.31%</td>
<td>6.33%</td>
</tr>
<tr>
<td>Invesco KBW Property &amp; Casualty Insurance ETF</td>
<td>8.17%</td>
<td>8.06%</td>
</tr>
</tbody>
</table>
</figure>
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/25/01/42901348/nancy-pelosis-stock-pick-palo-alto-networks-gets-a-downgrade-from-top-investment-bank-as-sector-wide">Nancy Pelosi&#8217;s Stock Pick Palo Alto Networks Gets A Downgrade From Top Investment Bank As Sector-Wide Consolidation Down-Cycle Weighs on Sentiment</a></li>
</ul>
Photo courtesy: Wikimedia

California Wildfires Ignite Concerns For Insurance Stocks: Here Are Some Insurance ETFs Which Could Be Impacted

The Travelers Companies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>) shares are trading higher premarket on Thursday after the company reported&nbsp;third-quarter revenue growth of&nbsp;12%&nbsp;year-over-year to&nbsp;$11.904 billion,&nbsp;beating the <a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/b41376631/travelers-reports-excellent-third-quarter-and-year-to-date-results" rel="noreferrer noopener">consensus of&nbsp;$11.491 billion</a>.
Core income per share jumped 169% to $5.24, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">$3.64 consensus estimate</a>.
Core income increased mainly due to improved underwriting gains, better reserve development, and higher net investment income, partially offset by higher catastrophe losses.
For the&nbsp;third quarter, net written premiums increased by&nbsp;8%&nbsp;to&nbsp;$11.3 billion. In Business Insurance, net written premiums rose&nbsp;9% to $5.5 billion, with a&nbsp;10.5%&nbsp;increase in renewal premiums and&nbsp;86%&nbsp;retention.
Bond &amp; Specialty Insurance premiums grew&nbsp;7%&nbsp;to over&nbsp;$1.1 billion, featuring&nbsp;90%&nbsp;retention in management liability and a&nbsp;7%&nbsp;increase in surety premiums. Personal Insurance saw a&nbsp;7%&nbsp;boost in net written premiums, driven by&nbsp;6%&nbsp;growth in Auto and&nbsp;9%&nbsp;in Homeowners and Other.
Net realized investment gains stood at&nbsp;$55&nbsp;million&nbsp;pre-tax ($42&nbsp;million&nbsp;after-tax) vs. net realized investment losses of $65 million&nbsp;pre-tax ($50&nbsp;million&nbsp;after-tax) in the same quarter last year.
Quarterly net investment income increased&nbsp;18%&nbsp;to&nbsp;$904&nbsp;million pre-tax ($742&nbsp;million&nbsp;after-tax). Income from the fixed-income investment portfolio rose Y/Y, led by a higher average yield and growth in fixed-maturity investments.
Dividend: The Board declared a quarterly dividend per share of&nbsp;$1.05, payable on December 31, 2024, to shareholders of record as of December 10, 2024.
Alan Schnitzer, chairman and chief executive officer, said, &#8220;These results, along with our strong balance sheet, enabled us to return $496 million of excess capital to our shareholders this quarter, including $253 million of share repurchases.&#8221;
&#8220;Driven by our formidable earnings power across underwriting and investments, we delivered 15.9% core return on equity over the last twelve months&#8230;With this momentum, we are very confident in our outlook for our business into 2025 and beyond.&#8221;
Investors can gain exposure to the stock via&nbsp;Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>) and IShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>).
Price Action: TRV shares are up 4.96% at $255.00 premarket at the last check premarket on Thursday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/10/41377257/wall-street-poised-to-open-higher-as-tsmc-earnings-expected-to-kick-off-rally-in-tech-stocks-strate" target="_blank" rel="noreferrer noopener">Wall Street Poised To Open Higher As TSMC Earnings Expected To Kick Off Rally In Tech Stocks: Strategist Says AI Trade Will Have Legs Even In Case Of Recession In 2025</a></li>
</ul>

Dividends

Travelers' Q3 Triumph: Strong Premium Growth And Underwriting Gains Propel Massive Earnings Beat

Insured losses are way higher than originally anticipated due to the havoc from <a href="https://www.benzinga.com/markets/equities/24/10/41240852/back-to-back-hurricanes-batter-floridas-insurance-market-stocks-to-watch">back-to-back hurricanes</a>.
What Happened: Moody&#8217;s Risk Management Solutions, or RMS, <a href="https://www.rms.com/newsroom/announcement/2024-10-14/moodys-rms-event-response-us-private-market-insured-loss-estimate-for-hurricanes-helene-and-milton">crunched</a> the data to determine the financial impact of Hurricanes Milton and Helene. 
The firm expects total insured losses to range between $35 billion and $55 billion. 
That&#8217;s nearly quadruple what Moody's originally estimated, with losses falling between $8 billion and $14 billion. 
Hurricane Milton, the 13th named storm of the season, closely followed Hurricane Helene, which made landfall just two weeks earlier in Florida&#8217;s Big Bend region along the Gulf of Mexico.
Both storms hit many of the same areas, bringing widespread wind damage, storm surges, and inland flooding.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41317881/hurricane-milton-to-deliver-2-5b-blow-to-floridas-homebuilding-sector-goldman-sachs">Hurricane Milton To Deliver $2.5B Blow To Florida&#8217;s Homebuilding Sector, Goldman Sachs Says</a>
Why It Matters: Moody&#8217;s estimates help insurance companies, policymakers and other stakeholders assess the financial risks and prepare for the economic consequences of such events in the future.
And that&#8217;s important considering hurricane season typically runs until Nov. 30. 
But here&#8217;s the thing: Floridians already pay exorbitant homeowners&#8217; insurance premiums, <a href="https://www.orlandoweekly.com/news/experts-worry-floridas-2024-hurricane-season-could-wipeout-recent-homeowners-insurance-fixes-38005875">per</a> Orlando Weekly. With the immense damage caused by these storms, they&#8217;re going to be paying even more.
According to Moody&#8217;s Chief Risk Modeling Officer Mohsen Rahnama, several factors add uncertainty to the final loss estimates. These include the complexity of hazard patterns, such as the damaging tornadoes spawned by Milton's rainbands in southern Florida, and the storm's interaction with a mid-latitude jet, which created two swaths of the strongest winds. 
In some cases, structures already damaged by Helene may have sustained further damage from Milton. This complicates efforts to determine the primary cause of loss and leads to potential coverage issues.
It&#8217;s not just Helene and Milton. Overlapping insurance claims and Florida's annual deductibles may increase losses for properties previously damaged by past hurricanes, such as Ian in 2022.
Altogether, the Moody&#8217;s ground teams conducted &#8220;field reconnaissance&#8221; for more than 2,000 miles of damage.
&#8220;Our teams are still in Florida surveying the impacted areas,&#8221; Rahnama said.
Florida&#8217;s Insurance Problem: Several major insurance companies had already retreated from Florida due to the high risks associated with the state&#8217;s frequent hurricanes and rising litigation costs. The ones that remained include:
<ul>
<li>Allstate Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALL#NYSE">ALL</a>) </li>
<li>Travelers Companies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>) </li>
<li>Progressive Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PGR#NYSE">PGR</a>) </li>
<li>State Farm</li>
</ul>
Florida-only carriers will take the hardest hit, per a Moody&#8217;s report from Oct. 10. These insurance companies have at least 75% of their homeowners and commercial property premiums written in the state, the firm noted. 
&#8220;The top 10 Florida-only insurers write about 50% of the state&#8217;s homeowners business and are more vulnerable than others given their geographic concentration,&#8221; the company <a href="https://floridaphoenix.com/wp-content/uploads/2024/10/Moodys-Ratings_Hurricane-Milton_Reinsurers-10Oct2024-PBC_1425591-1.pdf">stated</a>. They include:
<ul>
<li>Citizens Property Insurance Corp.</li>
<li>Universal P&amp;C</li>
<li>Tower Hill</li>
<li>First Protective</li>
<li>Slide Insurance</li>
<li>Edison Insurance</li>
<li>Amer Integrity</li>
<li>Florida Peninsula</li>
<li>Homeowners Choice P&amp;C</li>
<li>Security First </li>
</ul>
ETFs To Watch: Three exchange-traded funds tracking public companies in the insurance space were all in the green at last check Monday:
<ul>
<li>SPDR S&amp;P Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KIE#NYSE">KIE</a>), up 0.78%</li>
<li>iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>), up 0.37%</li>
<li>Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>), up 0.58%</li>
</ul>
What&#8217;s Next: Moody's will provide a final industry loss estimate for Milton by the end of this week.
The National Hurricane Center is tracking a tropical depression in the Atlantic Ocean. 
Though it can bring heavy rain and cause flooding, a tropical depression is generally weak; if wind speeds increase beyond 39 miles per hour, it can develop into a tropical storm or hurricane if conditions allow.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Mon 10/14 8am EDT: <a href="https://twitter.com/hashtag/AL94?src=hash&amp;ref_src=twsrc%5Etfw">#AL94</a> has a chance of developing into a tropical depression as it approaches, or moves near the northern <a href="https://twitter.com/hashtag/LeewardIslands?src=hash&amp;ref_src=twsrc%5Etfw">#LeewardIslands</a> late this week. <a href="https://t.co/1aFZ3ykENk">pic.twitter.com/1aFZ3ykENk</a>
&mdash; National Hurricane Center (@NHC_Atlantic) <a href="https://twitter.com/NHC_Atlantic/status/1845796399990129124?ref_src=twsrc%5Etfw">October 14, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Now Read:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41319060/s-p-500-extends-record-highs-dow-breaks-43-000-ahead-of-pivotal-earnings-week-bitco">S&amp;P 500 Extends Record Highs, Dow Breaks 43K, Bitcoin Rallies: What&#8217;s Driving Markets Monday?</a></li>
</ul>
Photo: Shutterstock

Hurricanes Helene, Milton Insurance Losses Spike To $55B: Moody's

It might be surprising for some to hear that 2024 has been a great year for stocks in the insurance industry. In fact, every single large-cap insurance stock in the United States and Canada trading region has a positive return this year. Additionally, the iShares U.S. Insurance ETF (ARCA: IAK) has provided a total return of nearly 29%.&nbsp; Some stocks, like Progressive (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pgr#NYSE">PGR</a>), are up more than 50%.
SelectQuote (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/slqt#NYSE">SLQT</a>) is no exception to the success of this industry. Shares are up 54% this year. However, one metric that does make it stand out is the average Wall Street price target placed on the company. It sits at $4.50. This means the stock could rise 113% from the $2.11 level as of the Oct. 8 close. This average price target matches up with the figure set by analysts at Craig-Hallum, who initiated coverage of the stock on Sept. 30.
<h2>SelectQuote&#39;s Business Model Has Advantages Over Traditional Insurance Companies</h2>
SelectQuote is a direct-to-consumer platform for shopping for insurance. It covers life, home, auto, and senior health insurance. It is not an insurance provider but simply finds insurance products for consumers. SelectQuote then gets a commission from the insurance provider when the consumer buys a policy.
The company claims that its competitive advantages are its technology and skilled agents. Its technology takes in customer data and analyzes it to connect a consumer to an agent that is best for them. Combined with the company&#39;s transparent pricing terms, a better customer experience is offered. This improves customer retention and leads to the company collecting more commissions over the life of an insurance policy.
The model of SelectQuote has some advantages over a traditional insurance company. First, because the company&#39;s salespeople do not work for a particular insurance company, they should be able to actually offer customers a better price. They can compare prices across the industry, and are not beholden to one company, making selling insurance much easier.
Additionally, the ability of agents to compare policies reduces the feeling from a customer that they are being &quot;sold to&quot; and pressured to buy a particular product. It&#39;s easy to see how this would lead to a better and longer lasting customer relationship. Lastly, the company can make money off these policies without taking on any of the insurance risks themselves.
<h2>SelectQuote&#39;s Healthcare Services Are Driving Growth</h2>
Another important part of the company&#39;s business is its healthcare services platform, which includes SelectRx. SelectRx is a pharmacy that ships prescriptions directly to patients. It also helps patients manage their prescriptions and ensure they take them on time. Additionally, its SelectPatient management platform helps patients manage their chronic conditions.
Since 2022, the company has shown an incredible ability to grow this part of the business, particularly through the pharmacy. Pharmacy revenue has grown by 680% in just two years, compared to growth of 22% in insurance commissions. This is likely due to the company&#39;s large base of senior health insurance customers. It makes cross-selling pharmacy products highly effective.
The company has been getting closer to profitability since starting the healthcare services part of the business in 2021. This part of the business has added significant revenue to the company, but has also come with significant costs. Still, gross margins in the segment are growing. This has helped the company reduce its loss per share in fiscal 2024 to $0.20 from a loss of $1.81 in 2022.
<h2>Valuation and Final Thoughts</h2>
Despite its large rise this year, the company does not seem overvalued compared to other insurance companies. Its 11.5x last 12-month enterprise value to EBITDA ratio sits slightly below the 12.6x average of all U.S. insurance companies with market capitalizations of at least $300 million.
The company expects revenue growth to slow significantly from the plus 30% range over the past years to around 10% next year. However, it does see loss per share improving by 30%. A big concern is that the company sees adjusted EBITDA falling by 10%.
It says this is due to a change in its commissions structure from one of the largest insurance companies it works with. This created a capital constraint, not the firm to hire as many agents for next year. However, it believes this is temporary. For me, SelectQuote looks like a nice business model that is going closer to profitability and has a reasonable valuation.
The article &quot;<a href="https://www.marketbeat.com/originals/is-selectquote-a-double-bagger-stock-analysts-predict-huge-gains/">Is SelectQuote a Double-Bagger Stock? Analysts Predict Huge Gains</a>&quot; first appeared on MarketBeat.

Penny Stocks

Price Target

Initiation

Small Cap

Analyst Ratings

Trading Ideas

SLQT

Is SelectQuote a Double-Bagger Stock? Analysts Predict Huge Gains

As Hurricane Milton barrels through the Gulf of Mexico towards Florida on Wednesday, officials downgraded the storm from Category 5 to Category 4. That&#8217;s not enough to rescind calls <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41254312/hurricane-milton-descends-on-florida-analysts-warn-of-impact-on-disney-nexteras-flo">for residents to evacuate</a>.
For a look at how hurricanes are categorized, and what it means for sustained wind speeds, Benzinga looked at the&nbsp;Saffir-Simpson Hurricane Wind Scale.
This scale helps estimate the likely damage and flooding a hurricane can cause. Here's a breakdown of each category:
See Also: <a href="https://www.benzinga.com/news/24/10/41231817/hurricane-milton-dire-warning-if-you-choose-to-stay-youre-going-to-die-officials-encourage-writing-n" target="_blank" rel="noreferrer noopener">Hurricane Milton Dire Warning: ‘If You Choose To Stay … You're Going To Die,' Officials Encourage Writing Name On Arm In Permanent Marker For ID</a>
<h1 class="wp-block-heading">Category 1</h1>
<ul>
<li>Winds: 74-95 mph </li>
<li>Damage: Minimal damage to well-constructed homes, some damage to roofs, shingles and gutters. Trees may lose branches, and power outages may occur.</li>
<li>Milton started out as a Category 1 storm but underwent rapid intensification and strengthened to a powerful Category 5 hurricane in less than 24 hours while moving across the Gulf of Mexico.</li>
</ul>
<h1 class="wp-block-heading">Category 2</h1>
<ul>
<li>Winds: 96-110 mph </li>
<li>Damage: Expect moderate damage, including significant roof and siding damage as shallow-rooted trees get uprooted. This could cause power outages.</li>
<li>Milton intensified into a Category 2 storm early on Oct. 7, shortly after it had become a hurricane.</li>
</ul>
<h1 class="wp-block-heading">Category 3 (Major Hurricane)</h1>
<ul>
<li>Winds: 111-129 mph </li>
<li>Damage: Extensive damage, with major roof damage or removal of decking on houses. Trees and electricity poles may fall down. Expect power outages that could last for several days.</li>
<li>Following a period of rapid intensification due to favorable conditions like warm sea surface temperatures and low wind shear, Milton quickly escalated to a Category 3.</li>
</ul>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The differences between a CAT 1, CAT 2, CAT 3, CAT 4, &amp; CAT 5 hurricane If you are in the path of <a href="https://twitter.com/hashtag/HurricanMilton?src=hash&amp;ref_src=twsrc%5Etfw">#HurricanMilton</a> stay safe! &#x2764;&#xFE0F;&#x1f64f; <a href="https://t.co/gEWqurkTYI">pic.twitter.com/gEWqurkTYI</a>
&mdash; RetirementUnity.com &#x1f44d; (@RetirementUnity) <a href="https://twitter.com/RetirementUnity/status/1843322073365815806?ref_src=twsrc%5Etfw">October 7, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
<h1 class="wp-block-heading">Category 4 (Major Hurricane)</h1>
<ul>
<li>Winds: 130-156 mph </li>
<li>Damage: Severe damage, including loss of most of the roof structure and/or exterior walls of homes. Fallen trees and power poles will isolate residential areas, and power outages could last weeks.</li>
<li>Recent Storms In This Category: Hurricane Harvey, which made landfall in 2017 as a Category 4 storm in Texas, inflicted around $125 billion in damages​. Hurricane Irma, which also made landfall in 2017, caused widespread destruction across Florida and Georgia, resulting in at least $50 billion in damages​. Hurricane Ian, which also struck Florida, led to over 150 fatalities and left behind more than $112 billion in damages in 2022. </li>
</ul>
<h1 class="wp-block-heading">Category 5 (Major Hurricane)</h1>
<ul>
<li>Winds: 157 mph or higher </li>
<li>Damage: Catastrophic damage, with a high percentage of framed homes being destroyed. Total roof failure and wall collapse are common. Fallen trees and power poles will cause isolation and power outages could last for weeks to months.</li>
<li>Recent Storms In This Category: Hurricane Katrina, a Category 3 when it made landfall near New Orleans in 2005, reached Category 5 intensity over the Gulf of Mexico. It remains one of the most devastating hurricanes in U.S. history. Hurricane Michael made landfall in Florida&#8217;s Panhandle as a Category 5 storm in 2018. Winds reaching 160 mph caused extreme damage in areas like Mexico Beach and Panama City</li>
</ul>
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
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<iframe loading="lazy" title="Cat 4 Hurricane Milton - Heading for Tampa Bay - Watch LIVE" width="500" height="281" src="https://www.youtube.com/embed/dNwAobGBMiE?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div>
</figure>
ETFs To Watch: For an insurance-focused exchange-traded fund (ETF) that could see movement due to the increasing frequency and severity of hurricanes, check out:
<ul>
<li>iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>), up 0.98% at last check on Wednesday, at $128.85. </li>
<li>Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>), up 1.59% at last check on Wednesday, at $115.17.</li>
</ul>
Now Read: 
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/10/41239644/hurricane-milton-evacuations-a-matter-of-life-and-death-biden-says-feds-bostic-says-storm-could-" target="_blank" rel="noreferrer noopener">Hurricane Milton Evacuations ‘A Matter Of Life And Death,' Biden Says &#8211; Fed's Bostic Says Storm Could Have Significant Economic Impact Over Next 6 Months</a></li>
</ul>
Photo: Hurricane Milton, National Oceanic and Atmospheric Administration (NOAA)

How Strong Is Milton? What To Expect From Hurricane Categories 1 Through 5

BofA Securities analyst Joshua Shanker downgraded Chubb Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CB#NYSE">CB</a>) to Underperform from Neutral, while raising<a target="_blank" href="https://www.benzinga.com/quote/CB/analyst-ratings" rel="noreferrer noopener"> the price target to $275 from $264</a>.
The analyst downgraded the stock after a period of strong outperformance (up 29% YTD and 41% over the past year) in CB shares and the broader P&amp;C sector.
The analyst writes that over the past decade, Chubb&#8217;s book value per share (BVPS), tangible BVPS, and EPS grew at CAGRs of 7%, 5%, and 10%, respectively—lower than peers despite a premium valuation.
Although growth accelerated to 15%, 17%, and 14% over the last year, it still lagged behind peers as P&amp;C underwriting margins peaked, adds the analyst.
Shanker says the company&#8217;s slower growth stems from lower operating leverage, a focus on premium-to-book acquisitions, and less efficient share repurchases at higher valuations.
The analyst&#8217;s 2025 forecast of 6% EPS growth and 12% BVPS growth is below consensus and at the lower end of peer expectations, with some peers poised for 20%+ BVPS growth.
Notably, the analyst&#8217;s estimates for 2025 and 2026 EPS forecasts dip slightly due to higher share prices for repurchases following stock outperformance.
However, Shanker&#8217;s third-quarter EPS estimate rose by nearly $0.20 per share as they lowered expectations for catastrophe losses.
The analyst projects third-quarter catastrophe activity at 7.7% of Global P&amp;C earned premiums, below the typical 9%, with no major events.
Investors can gain exposure to the stock via iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>) and Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>).
Price Action: CB shares are up 0.52% at $290.05 at the last check Friday.
Photo via Shutterstock
Read Next:
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<li><a href="https://www.benzinga.com//node/41188653" target="_blank" rel="noreferrer noopener">Diamondback Energy Is &#8216;Making All The Right Moves,&#8217; Says Bullish Analyst</a></li>
</ul>

Analyst Color

Downgrades

Chubb's Growth Slows Vs. Peers, Analyst Downgrades Despite Stock Surge

Making its debut on 11/08/2005, smart beta exchange traded fund SPDR S&amp;P Insurance ETF (ARCA:KIE) provides investors broad exposure to the Financials ETFs category of the market.
<h2>What Are Smart Beta ETFs?</h2>
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
<h2>Fund Sponsor &amp; Index</h2>
KIE is managed by State Street Global Advisors, and this fund has amassed over $890.09 million, which makes it one of the average sized ETFs in the Financials ETFs. This particular fund, before fees and expenses, seeks to match the performance of the S&amp;P Insurance Select Industry Index.
The S&amp;P Insurance Select Industry Index represents the insurance segment of the S&amp;P Total Market Index.
<h2>Cost &amp; Other Expenses</h2>
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.35% for this ETF, which makes it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.34%.
<h2>Sector Exposure and Top Holdings</h2>
It is important to delve into an ETF&#39;s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
KIE&#39;s heaviest allocation is in the Financials sector, which is about 100% of the portfolio.
When you look at individual holdings, Erie Indemnity Company Cl A (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/erie#NASDAQ">ERIE</a>) accounts for about 2.46% of the fund&#39;s total assets, followed by Ryan Specialty Holdings Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ryan#NYSE">RYAN</a>) and Kinsale Capital Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/knsl#NYSE">KNSL</a>).
Its top 10 holdings account for approximately 22.7% of KIE&#39;s total assets under management.
<h2>Performance and Risk</h2>
So far this year, KIE has added roughly 24.48%, and was up about 31.63% in the last one year (as of 09/16/2024). During this past 52-week period, the fund has traded between $41.63 and $56.48.
The ETF has a beta of 0.84 and standard deviation of 18.17% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
SPDR S&amp;P Insurance ETF is an excellent option for investors seeking to outperform the Financials ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/kbwp#NASDAQ">KBWP</a>) tracks KBW Nasdaq Property &amp; Casualty Index and the iShares U.S. Insurance ETF (ARCA:IAK) tracks Dow Jones U.S. Select Insurance Index. Invesco KBW Property &amp; Casualty Insurance ETF has $333.52 million in assets, iShares U.S. Insurance ETF has $709.73 million. KBWP has an expense ratio of 0.35% and IAK charges 0.39%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Financials ETFs.
<a href="https://www.zacks.com/stock/news/2336243/is-spdr-s-p-insurance-etf-kie-a-strong-etf-right-now?cid=CS-BENZ-FT-smart_beta_etf-2336243">To read this article on Zacks.com click here.</a>

Mid Cap

ERIE

KNSL

RYAN

Is SPDR S&P Insurance ETF a Strong ETF Right Now?

The Allstate Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALL#NYSE">ALL</a>) shares are trading higher after the company reached a definitive deal to sell its Employer Voluntary Benefits business to StanCorp Financial Group, Inc. for $2.0 billion in cash, subject to <a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/b40354903/allstate-to-sell-employer-voluntary-benefits-business-to-the-standard" rel="noreferrer noopener">customary conditions and approvals</a>.
The sale is projected to generate a $600 million gain and<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener"> increase deployable capital by $1.6 billion.</a>
Allstate expects adjusted net income return on equity to decrease by approximately 100 basis points after the sale. The deal is anticipated to close in the first half of 2025.
The sale marks the initial phase of Allstate&#8217;s strategy to enhance growth by merging its Employer Voluntary Benefits, Individual Health, and Group Health businesses with companies that offer additional capabilities.
Apart from this, the companies will also form a product distribution partnership. Under the cooperation, The Standard will exclusively handle group life, disability, and other benefits sold through Allstate&#8217;s agents, providing a <a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/b40354955/the-standard-to-acquire-allstate-employer-voluntary-benefits-business-companies-announce-distribut" rel="noreferrer noopener">trusted group benefits partner</a>.
Tom Wilson, Chair, President and CEO of The Allstate Corporation, said, &#8220;Allstate&#8217;s Employer Voluntary Benefits business provides protection to over 3.5 million customers who will continue to be well served by The Standard. The alignment between Allstate&#8217;s industry-leading product offerings, employer relationships, distribution and talented team and The Standard&#8217;s group benefits business will provide customers with broader protection and higher value.&#8221;
&#8220;Allstate shareholders will also benefit as capital is deployed to increase market share in personal property-liability and expand protection offerings. Discussions on the sale of the Individual and Group Health businesses are continuing and are expected to achieve the same success.&#8221;
Allstate stock gained over&nbsp;60% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>) and IShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>).
Price Action: ALL shares are up 1.68% at $174.85 premarket at the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
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</ul>

Allstate Sells Employer Voluntary Benefits Unit To StanCorp For $2B: Details

The Travelers Companies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>) shares are trading higher on Friday after the company reported Q2 revenue growth of 12% Y/Y to $11.283 billion, <a href="https://www.benzinga.com/pressreleases/24/07/b39856554/travelers-reports-strong-second-quarter-and-year-to-date-results" target="_blank" rel="noreferrer noopener">missing the consensus of $11.341 billion</a>.
Core income per share reached $2.51, up from 6 cents a year ago, beating the <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">$1.98 consensus forecast</a>.
Core income increased mainly due to improved underwriting gains, better reserve development, and higher net investment income, partially offset by higher catastrophe losses.
For the&nbsp;second quarter, net written premiums increased by&nbsp;8% Y/Y&nbsp;to&nbsp;$11.12 billion.
In Business Insurance, net written premiums rose 7% to $5.5 billion, with a 10.1% increase in renewal premiums, 85% retention, and record new business of $732 million.
Bond &amp; Specialty Insurance premiums grew 8% to over $1 billion, featuring 90% retention in management liability and an 11% increase in surety premiums.
Personal Insurance saw a 9% boost in net written premiums, driven by 10% growth in Auto and 8% in Home.
Net realized investment losses stood at $65 million pre-tax ($51 million after-tax), up from $35 million pre-tax ($29 million after-tax) in the same quarter last year.
Catastrophe losses were mainly due to severe wind and hail storms across several states.
Underlying combined ratio improved 3.4 points Y/Y to 87.7% in the quarter. The lower the ratio, the more profitable the insurance company, and vice versa.
The quarterly net investment income increased&nbsp;24% Y/Y to&nbsp;$885 million&nbsp;pre-tax ($727 million after-tax). Income from the fixed-income portfolio rose from the previous year due to higher average yields and increased fixed-maturity investments.
Dividend: The Board declared a quarterly dividend per share of $1.05, payable on Sept. 30, 2024, to shareholders of record as of Sept. 10, 2024.
Alan Schnitzer, chairman and chief executive officer said, &#8220;Our results for the first half of the year include strong premium growth, excellent underlying underwriting profitability, record operating cash flow and steadily rising investment returns in our growing fixed income portfolio.&#8221;
Travelers Companies stock gained around&nbsp;29%&nbsp;in the last 12 months. Investors can gain exposure to the stock via&nbsp;Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>) and IShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>).
Price Action: TRV shares are down 3.10% at $213.66 during early morning trading Friday.
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock

Travelers' Q2 Earnings Beat Expectations With Strong Core Income

After Warren Buffett-run Berkshire Hathaway, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) revealed insurer Chubb Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CB#NYSE">CB</a>) <a href="https://www.benzinga.com/markets/equities/24/05/38873913/warren-buffetts-berkshire-confirms-apple-sale-dumps-this-pc-maker-finally-reveals-mystery-stock-">as its mystery stock, </a>an investment advisor said on Thursday the next rotation could be into the insurance sector.
Buffett&#8217;s Bet: Berkshire&#8217;s 13F filed late Wednesday showed that the firm accumulated 25.92 million shares of the property and casualty insurer at a valuation of $6.72 billion. This gives Berkshire a 6.4% stake in the insurer (based on 406 million in outstanding shares). The stock rallied over 8% over two sessions following the disclosure.
&#8220;Warren is back to his second love (insurance),&#8221; said Lumida Wealth founder Ram Ahluwalia in a post on X, formerly Twitter. 
The investment advisor noted that <a href="https://www.benzinga.com/real-estate/23/08/33963717/warren-buffett-bets-on-the-u-s-housing-market-with-3-new-investments-be-greedy-when-others-are-fearf">Buffett was scooping up investments in multiple homebuilders</a> in the second half of the 2023, adding that nine months later, the billionaire&#8217;s investment in D.R. Horton, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) has risen 30%, outpacing the S&amp;P 500 Index.
&#8220;Now, Buffett has &#8216;alterted&#8217; the market that the next rotation is in Insurance,&#8221; Ahluwalia said. He noted that a few insurance companies rallied in sympathy with Chubb.
See Also: <a href="https://www.benzinga.com/money/best-financial-services-stocks">Best Financial Services Stocks</a>
Poised To Take Off? Ahluwalia pointed out that insurance premiums have remained elevated due to recent hurricanes in Florida, contributing to a 6% year-over-year increase. He added that despite strong fundamentals, stocks in the sector have lagged.
That said, the investor thinks the bad news is priced in and they are now &#8220;making more money.&#8221;
&#8220;Buffett has single-handedly re-focused Mr. Market, like the eye of Sauron, on the Insurance sector. And, perhaps if we get a &#8216;trend kick-off,&#8217; we can get returns of 30% much like homebuilders on the second half of last year,&#8221; he said.
&#8220;Insurance is also consistent with what Mr. Market is building up: Value.&#8221;
Delving into Lumida&#8217;s approach, Ahluwalia said, &#8220;We have an a priori view of what the best businesses in the world are. Then we wait for the theme to perform, or the asset to go on sale for silly reasons.&#8221;
 &#8220;That&#8217;s part of what lets us stay ahead of Mr. Market, or at least anticipate the turn&#8230;&#8221;
The iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>) rose 1.32% to $117.86 on Friday, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a>
Read Next: <a href="https://www.benzinga.com/government/24/05/38630925/buffett-says-no-other-americans-would-have-had-to-pay-even-a-dime-in-federal-taxes-if-this-had-happe">Buffett Says No Other Americans Would Have Had To Pay Even A Dime In Federal Taxes If This Had Happened</a>
Photo: Shutterstock

Long Ideas

Looking For Superlative Returns? Investor Flags Potential 30% Gains In This Sector After Warren Buffett Turns Market Focus Toward These Stocks

The insurance sector is among the prime beneficiaries of higher rates for a longer period. This is because the sector players are able to earn higher returns on their investment portfolio of longer-duration bonds. However, these firms incur losses as the value of longer-duration bonds goes down with a rise in interest rates. Nevertheless, since insurance companies have long-term investment horizons, they can hold investments until maturity, and hence, no actual losses are realized. 
Additionally, decent earnings reports have helped the sector to survive the market rout seen last month. SPDR S&amp;P Insurance ETF (ARCA:KIE) and iShares U.S. Insurance ETF (ARCA:IAK) are down about just 0.6% each over the past month, while Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/kbwp#NASDAQ">KBWP</a>) is relatively flat.
<h3>Insurance Earnings in Focus</h3>
The U.S. life insurance behemoth MetLife (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/met#NYSE">MET</a>) matched earnings estimates but missed revenue estimates. MetLife reported earnings of $1.83 per share, which were on par with the Zacks Consensus Estimate and improved 20.4% from the year-ago quarter. Revenues climbed 5.5% year over year to $17 billion and were below the consensus estimate of $17.69 billion. The second-largest U.S. life insurer Prudential Financial (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pru#NYSE">PRU</a>) missed on earnings but beat estimates on revenues. Earnings per share of $3.12 lagged the Zacks Consensus Estimate of $3.16 but increased 15.5% from the year-ago earnings. Revenues grew 44.8% year over year to $21.70 billion and edged past the consensus mark of $14.78 billion. 
Chubb Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cb#NYSE">CB</a>), one of the leading property and casualty insurers, surpassed the Zacks Consensus Estimate for earnings per share by 12 cents and topped the revenue estimate by $433 million. Earnings per share improved 22.7% year over year. Another property and casualty insurer, Allstate (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/all#NYSE">ALL</a>) posted an earnings per share of $5.13, surpassing the Zacks Consensus Estimate of $4.11. The company had reported a loss of $1.30 per share in the year-ago quarter. Revenues grew 12% year over year to $15.40 billion, well above the consensus mark of $15.29 billion. 
Earnings per share of $1.66 reported by Aflac (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/afl#NYSE">AFL</a>), a seller of supplemental health insurance, trumped the Zacks Consensus Estimate by 8 cents and improved from the year-ago earnings of $1.55. Revenues grew 13.3% year over year to $5.4 billion and beat the consensus mark of $5.3 billion. 
Personal property and casualty insurer Travelers (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/trv#NYSE">TRV</a>) posted earnings per share of $4.69, missing the Zacks Consensus Estimate by 6 cents but improving 14.1% from the year-ago earnings. Revenues grew 15.3% year over year to $11.2 billion and edged past the consensus mark of $11.9 billion.
<h3>ETFs in Focus</h3>
SPDR S&amp;P Insurance ETF 
SPDR S&amp;P Insurance ETF follows the S&amp;P Insurance Select Industry Index, holding well-diversified 48 stocks in its basket. About 50% of the portfolio is allocated to property and casualty insurance, while life &amp; health insurance and insurance brokers round off the next two spots with double-digit exposure. SPDR S&amp;P Insurance ETF has managed $715.6 million in its asset base and charges 35 bps in annual fees. It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. 
iShares U.S. Insurance ETF 
With AUM of $638.7 million, iShares U.S. Insurance ETF offers exposure to U.S. companies that provide life, property and casualty, and full-line insurance. It tracks the Dow Jones U.S. Select Insurance Index and holds 54 securities in its basket with a double-digit concentration on the top two firms. Property &amp; casualty insurance accounts for the largest share at 69.6%, while life &amp; health insurance rounds off the next spot with double-digit exposure. iShares U.S. Insurance ETF charges 40 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook. 
Invesco KBW Property &amp; Casualty Insurance ETF 
Invesco KBW Property &amp; Casualty Insurance ETF provides exposure to 25 companies primarily engaged in U.S. property and casualty insurance activities. It follows the KBW Nasdaq Property &amp; Casualty Index and is concentrated on the top five firms that make up about 8% share each. Invesco KBW Property &amp; Casualty Insurance ETF has managed $317.9 million in its asset base and has an expense ratio of 0.35%. KBWP has a Zacks ETF Rank #3 with a Medium risk outlook.
<a href="https://www.zacks.com/stock/news/2271639/here-s-how-insurance-etfs-are-placed-post-q1-earnings?cid=CS-BENZ-FT-etf_news_and_commentary-2271639">To read this article on Zacks.com click here.</a>

Here's How Insurance ETFs Are Placed Post Q1 Earnings

Citadel CEO Ken Griffin joined CNBC's "Power Lunch" Monday and discussed inflation, interest rates and the influence of AI <a href="https://www.benzinga.com/tech/24/05/38644881/warren-buffetts-warning-about-ai">on the American workforce.</a>&nbsp;&nbsp;
What Happened: The Federal Reserve held interest rates steady at its May meeting, marking the sixth consecutive meeting without a rate change. In an interview on CNBC this week, Griffin said the Fed is making the right decision by leaving rates unchanged as he believes rates should remain unchanged for the foreseeable future. 
"They've got to stay with higher rates to bring inflation back in check," Griffin said. "They need to bring inflation down over time."&nbsp;
The billionaire hedge fund manager noted that inflation has come down in goods, but remains elevated in the services sector and therefore, "Powell and the team, I think, has made the right choice of staying higher for longer." 
Related News: <a href="https://www.benzinga.com/news/24/05/38632032/feds-stance-on-inflation-job-market-performance-and-peter-schiff-slamming-jerome-powell-top-economic">Fed&#8217;s Stance On Inflation, Job Market Performance, And Peter Schiff Slamming Jerome Powell: Top Economic Updates This Week</a>
Griffin acknowledged some sectors and industries are more likely to suffer when interest rates are high, including commercial real estate and highly-leveraged companies.&nbsp;
"If you borrow money, you want to pay less in interest," the Citadel CEO said. 
On the other hand, companies in the financial sector including banks, money managers and insurance firms may benefit in a high-interest rate environment. Investors looking to gain <a href="https://www.benzinga.com/partner/markets/24/05/38666588/cboe-continues-to-increase-financial-access-now-offers-more-than-1-000-etfs">exposure </a>to the banking industry could purchase shares of the Invesco KBW Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>) or the iShares US Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>), which offers exposure to companies in the insurance industry.
Looking Ahead: Griffin sees <a href="https://www.benzinga.com/news/24/05/38650683/whats-next-for-apples-ai-insights-from-research-provide-clues">artificial intelligence</a> as a strong tailwind for the economy as corporate executives lean into the adoption of AI in the workplace.&nbsp;
"AI has really transformed the mindset of corporate America," the CEO said before he pointed to a growing number of companies and executives looking to technology and AI as a way to "jumpstart" productivity. 
"This really improves life for the average American and helps to keep our economy strong and robust," Griffin concluded.&nbsp;
KBWB, IAK Price Action: At the time of publication Tuesday, Invesco KBW Bank ETF shares are up 0.5% at $53.78 and iShares US Insurance ETF shares are up 0.28% at $115.40, according to data from <a href="http://pro.benzinga.com">Benzinga Pro</a>,
Image: <a href="https://www.flickr.com/photos/187789660@N02/">Dan G</a> from Flickr.

Federal Reserve

KBWB

Citadel's Ken Griffin Says Fed Must Keep Rates 'Higher For Longer'

As April comes to a close, it&#8217;s time to compile the rankings for the top-performing sector and industry exchange-traded <a href="https://www.benzinga.com/etfs">funds of the month.</a>
Taking a broader look at the stock market, the S&amp;P 500 Index, represented by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), finished April on a downturn, declining by approximately 3%. This marks the end of a five-month streak of gains.
Similarly, the tech-heavy Nasdaq 100, tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), experienced a 3.5% decline.
Among large-cap indices, blue-chip stocks showed slight underperformance, with the SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) slipping by 4.5%.
Small-cap stocks, represented by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), plummeted by over 6%, marking their worst performance since October 2023.
Overall, it has been a challenging month for the stock market, primarily due to inflation surprises surpassing expectations. This has led to a recalibration of market expectations regarding potential Federal Reserve rate cuts.
Additionally, complex global geopolitical tensions have emerged, notably between Israel and Iran, alongside the ongoing issue in the Gaza Strip.
May is anticipated to start with a crucial event as investors await the Federal Reserve Open Market Committee <a href="https://www.benzinga.com/general/macro-notification/24/04/38526201/is-hawkish-shift-on-inflation-imminent-wall-street-analysts-traders-brace-for-fed-impa">(FOMC) meeting on Wednesday. </a>
While no interest rate changes are expected, all eyes will be on Fed Chair Jerome Powell&#8216;s remarks to assess the Fed&#8217;s stance in response to recent inflation surprises.
Read also: <a href="https://www.benzinga.com/general/macro-notification/24/04/38491988/federal-reserve-meeting-preview-high-interest-rates-need-more-time-to-work-bank-of-ame">Federal Reserve Meeting Preview: High Interest Rates &#8216;Need More Time To Work,&#8217; Bank of America Says</a>
<h2 class="wp-block-heading">Performance Of Sector ETFs In April 2024</h2>
At the sector level, only the utilities sector managed to avoid losses for the month, rising by 2.1%.
The largest stock contributors to the utilities&#8217; performance in April are NextEra Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEE#NYSE">NEE</a>), The Southern Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SO#NYSE">SO</a>), Dominion Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/D#NYSE">D</a>) and NRG Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>) which showed monthly gains between 4% and 8%. 
Energy stocks remained broadly stable, while the other nine S&amp;P 500&#8217;s sectors showcased losses.
Real estate experienced the worst performance, down by over 7%, dragged down by its high sensitivity to interest rates, as Treasury yields increase across the board during the month. 
Following real estate, the technology and healthcare sectors also showed poor performance in April.
<h4 class="wp-block-heading">April&#8217;s Best And Worst Sector ETFs: Utilities Lead, Real Estate Lags</h4>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Sector</th>
<th>April 2024 performance</th>
</tr>
</thead>
<tbody>
<tr>
<td>Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>)</td>
<td>2.06%</td>
</tr>
<tr>
<td>Energy&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)</td>
<td>0.01%</td>
</tr>
<tr>
<td>Consumer Staples&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>)</td>
<td>-1.11%</td>
</tr>
<tr>
<td>Industrials&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>)</td>
<td>-3.23%</td>
</tr>
<tr>
<td>Consumer Discretionary&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>)</td>
<td>-3.68%</td>
</tr>
<tr>
<td>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>)</td>
<td>-3.85%</td>
</tr>
<tr>
<td>Materials&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>)</td>
<td>-4.13%</td>
</tr>
<tr>
<td>Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</td>
<td>-4.24%</td>
</tr>
<tr>
<td>Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td>
<td>-4.78%</td>
</tr>
<tr>
<td>Health Care&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>)</td>
<td>-4.85%</td>
</tr>
<tr>
<td>Real Estate&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)</td>
<td>-7.83%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data as of Apr. 30, 2024 2:50 p.m. EDT</figcaption></figure>
<h2 class="wp-block-heading">Performance Of Industry ETFs In April 2024</h2>
Based on the industry ETF list provided by BlackRock Inc.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) iShares, only five out of the 25 industries managed to report gains in April. Among them, miners did well across the board, with silver, copper, and gold mining stocks reporting robust gains. 
Standout contributors to the mining industry&#8217;s outperformance in April were Pan American Silver Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PAAS#NYSE">PAAS</a>), up over 20%, Newmont Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), up 14%, Anglo American plc (OTCPK: AAUKF), up over 40%
Energy producers also managed to end the month in the green.
On the bottom side of the industry rankings, homebuilders, transportation, biotech stocks, digital infrastructure and real estate all report losses between 7% and 9.6% in April.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>Performance</th>
</tr>
</thead>
<tbody>
<tr>
<td>iShares MSCI Global Silver and Metals Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLVP#NYSE">SLVP</a>)</td>
<td>12.11%</td>
</tr>
<tr>
<td>iShares Copper and Metals Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>)</td>
<td>9.50%</td>
</tr>
<tr>
<td>iShares MSCI Global Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RING#NYSE">RING</a>)</td>
<td>5.93%</td>
</tr>
<tr>
<td>iShares MSCI Global Metals &amp; Mining Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PICK#NYSE">PICK</a>)</td>
<td>2.81%</td>
</tr>
<tr>
<td>iShares MSCI Global Energy Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FILL#NYSE">FILL</a>)</td>
<td>2.46%</td>
</tr>
<tr>
<td>iShares U.S. Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>)</td>
<td>-1.16%</td>
</tr>
<tr>
<td>iShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEO#NYSE">IEO</a>)</td>
<td>-1.37%</td>
</tr>
<tr>
<td>iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>)</td>
<td>-1.66%</td>
</tr>
<tr>
<td>iShares Lithium Miners and Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ILIT#NYSE">ILIT</a>)</td>
<td>-3.30%</td>
</tr>
<tr>
<td>iShares U.S. Broker-Dealers &amp; Securities Exchange ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAI#NYSE">IAI</a>)</td>
<td>-3.74%</td>
</tr>
<tr>
<td>iShares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>)</td>
<td>-3.88%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>-4.37%</td>
</tr>
<tr>
<td>iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>)</td>
<td>-4.40%</td>
</tr>
<tr>
<td>iShares U.S. Healthcare Providers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHF#NYSE">IHF</a>)</td>
<td>-4.79%</td>
</tr>
<tr>
<td>iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>)</td>
<td>-4.85%</td>
</tr>
<tr>
<td>iShares U.S. Regional Banks ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>)</td>
<td>-5.11%</td>
</tr>
<tr>
<td>iShares U.S. Pharmaceuticals ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHE#NYSE">IHE</a>)</td>
<td>-5.38%</td>
</tr>
<tr>
<td>iShares U.S. Oil Equipment &amp; Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>)</td>
<td>-5.45%</td>
</tr>
<tr>
<td>iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>)</td>
<td>-5.57%</td>
</tr>
<tr>
<td>iShares U.S. Medical Devices ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHI#NYSE">IHI</a>)</td>
<td>-5.75%</td>
</tr>
<tr>
<td>iShares Global Timber &amp; Forestry ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOOD#NYSE">WOOD</a>)</td>
<td>-6.20%</td>
</tr>
<tr>
<td>iShares Expanded Tech-Software Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGV#NYSE">IGV</a>)</td>
<td>-6.76%</td>
</tr>
<tr>
<td>iShares U.S. Digital Infrastructure and Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IDGT#NYSE">IDGT</a>)</td>
<td>-7.12%</td>
</tr>
<tr>
<td>iShares Biotechnology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBB#NYSE">IBB</a>)</td>
<td>-7.23%</td>
</tr>
<tr>
<td>iShares U.S. Transportation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYT#NYSE">IYT</a>)</td>
<td>-8.34%</td>
</tr>
<tr>
<td>iShares U.S. Home Construction ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITB#NYSE">ITB</a>)</td>
<td>-9.60%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data as of Apr. 30, 2024 3:15 p.m. EDT</figcaption></figure>
Now read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38497224/ai-data-centers-drive-electricity-demand-goldman-sachs-picks-16-stocks-to-play-the-">AI Data Centers Drive Electricity Demand: Goldman Sachs Picks 16 Stocks To Play The Trend</a>
Image generated using artificial intelligence via Midjourney.

Biotech

Market Summary

REIT

Broad U.S. Equity ETFs

Specialty ETFs

Health Care

Commodities

Econ #s

Tech

Real Estate

AAUKF

COPX

SPDR Dow Jones Industrial Average ETF Trust

FILL

iShares Dow Jones US Broker Dealers Index Fund

iShares Dow Jones US Regional Banks Index Fund

iShares U.S. Digital Infrastructure and Real Estate ETF

IDGT

iShares Dow Jones US Oil & Gas Exploration & Production Index Fund

iShares Dow Jones US Oil Equipment & Services Index Fund

iShares Dow Jones US Pharmaceuticals Index Fund

iShares Dow Jones US Health Care Provides Index Fund

iShares Dow Jones US Medical Devices Index Fund

ILIT

iShares Dow Jones US Aerospace & Defense Index Fund

iShares Dow Jones US Homenstruction Index Fund

iShares Trust Dow Jones US Financial Services Index Fund

iShares Dow Jones Transportation Average Index Fund

PAAS

PICK

iShares FTSE NAREIT Mortgage PLUS Capped Index Fund

iShares FTSE NAREIT Residential PLUS Capped Index Fund

RING

SLVP

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

iShares S&P Global Timber & Forestry Index Fund

WOOD

XLRE

Select Sector SPDR-Consumer Discretionary

April Showers On Wall Street:  Miners, Utilities Emerge As Bright Spots In Gloomy Market

The Travelers Companies&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>) reported a mixed first quarter, with earnings lagging<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/b38288054/travelers-reports-excellent-first-quarter-results" rel="noreferrer noopener">&nbsp;analyst' expectations</a>. Core income per share reached $4.69 from $4.11 a year ago, missing the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">$4.90 consensus forecast</a>. Net income per share rose to $4.80 from $4.13 a year earlier.
The stock declined after the results. The New York-based company offers auto, home, and business property casualty insurance.
For the first quarter, net written premiums increased by 8% to $10.18 billion, while total revenues also increased 16% Y/Y to $11.23 billion, beating the Street consensus of $10.51 billion. The company attributed performance to strong profitability, production in all three segments, and higher investment income.
The quarter included an elevated level of catastrophe losses of $712 million pre-tax, compared to $535 million pre-tax in the prior year quarter.
Catastrophe losses primarily resulted from severe wind and hail storms in the central and eastern regions of the United States.
The company's underlying combined ratio fell from 90.6% to 87.7% in the quarter. The lower the ratio, the more profitable the insurance company, and vice versa.
The quarterly net investment income increased 28% to $846 million pre-tax ($698 million after-tax). Income from the fixed-income investment portfolio increased over the prior year's quarter due to a higher average yield and growth in fixed-maturity investments.
Dividend:&nbsp;The Board declared a 5%&nbsp;growth in the regular quarterly dividend to $1.05 per share.&nbsp;
Travelers Companies stock gained over 30% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Invesco KBW Property &amp; Casualty Insurance ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>) and&nbsp;IShares U.S. Insurance ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>).
Price Action: TRV shares are down 3.20% at $215.98 premarket on the last check Wednesday.
Photo via Wikimedia Commons

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