SECTOR PERFORMANCE UPDATE
All four insurance sub-sectors tracked by Mercer Capital outperformed the S&P 500 in the third quarter of 2024.
All four insurance sub-sectors tracked by Mercer Capital outperformed the S&P 500 in the third quarter of 2024.
The market capitalization weighted index of Insurtech companies led the way with a return of 29.5% for the quarter (and 50.2% year-to-date). The biggest success story in this sector has been ROOT, which, despite some recent volatility, is still up nearly 3x for the year.
P&C underwriters had a solid quarter as well, with the two largest firms (Progressive and Chubb) up 22% and 13%, respectively. For the first nine months of 2024, the P&C index is up 32.5%.
After pulling back 2.4% in the second quarter, the insurance broker index rose 11.6% in 3Q24 and is now up 22.3% for the year. All eight constituents saw their shares rise.
The Life & Health index, which includes both traditional life insurers and managed care companies, rose 10.5% in the third quarter and is up 11.0% for the year. Despite its smaller size, shares of Oscar Health (NYSE: OSCR) increased 34% in the quarter and are now up 132% for the year.
The insurance IPO class of 2024 continued to perform well. Since their debut mid-year, shares of brokerage Woodlands Financial Group (NASDAQ:TWFG) and specialty underwriter Bowhead Specialty (NYSE:BOW) are up 60% and 65%, respectively.
Total announced transaction value of $24.7 billion in the insurance brokerage space through September 30 has already eclipsed the full year 2023, led by the news that Marsh would acquire the retail broker McGriff from parent Truist Insurance Holdings (TIH) for approximately $7.75 billion.