U.S. insurance stocks posted mixed results the week of May 31, as the broader market slumped.
The S&P 500 fell 2.76% to 2,752.06 during a trading week shortened by the Memorial Day holiday, while the SNL U.S. Insurance index declined 1.87% to 1,039.92.
In the property and casualty space, Fitch Ratings upgraded the long-term issuer default rating of CNA Financial Corp. to A- from BBB+ with a stable outlook. The company ended the week down 1.71% to $44.96.
But P&C stocks broadly could be poised to outperform because the majority of the industry is not directly impacted by trade and tariffs, CFRA analyst Cathy Seifert said in an interview. U.S. President Donald Trump this week announced a planned 5% tariff on all imports from Mexico, in what economists say marks a significant escalation of trade tensions.
Compass Point analyst Bijan Moazami downgraded Chubb Ltd. over beliefs that competition from "a resurgent" American International Group Inc. will hurt Chubb. AIG and Chubb are two of the largest insurers in the financial lines segment. "With AIG resurging, Chubb is finally facing a competitor as well run and well managed as itself," Moazami wrote.
Chubb's shares fell 1.42% to $146.07 for the week.
The Hartford Financial Services Group Inc. saw its shares slump 1.09% to $52.66 for the week. On May 23, the company completed its previously announced acquisition of Navigators Group Inc. in an all-cash transaction for $70 per share, or $2.2 billion, including expenses.
First American Financial Corp.'s shares declined 6.53% to $51.65. The Wall Street Journal reported May 24 that a defect in one of the company's production applications may have left customers' financial information vulnerable to unauthorized access.
In the managed care space, Humana Inc. shares fell 7.01% to $244.86. Anthem Inc. shares climbed 0.26% to $277.98 for the week, while Molina Healthcare Inc. shares surged 7.66% to $142.26.