Mizuho turns cautious on P&C insurers as market begins to soften
XLF•Price target changes and near-term outlook
Insurers may remain profitable in the near term because many existing policies were sold at higher prices, but cheaper new policies could push up claims relative to premiums over the next 12 to 24 months, the brokerage says.
It also expects elevated insurer buybacks to continue as growth opportunities diminish and lower valuations make repurchases more accretive.
| Company Name | New PT | Old PT |
|---|---|---|
| Arch Capital Group ACGL.O | $100 | $104 |
| American International Group AIG.N | $85 | $86 |
| Allstate ALL.N | $297 | $300 |
| AXIS Capital Holdings AXS.N | $118 | $130 |
| Chubb CB.N | $347 | $352 |
| Hartford Insurance Group HIG.N | $154 | $163 |
| Progressive PGR.N | $230 | $236 |
| W.R. Berkley WRB.N | $72 | $74 |
Mizuho says property and casualty market is softening
Mizuho says the property and casualty market is in the early stages of softening, with blended commercial lines' written renewal pricing below loss trends.
The brokerage cuts price targets on eight P&C insurers and downgrades Hartford Insurance Group to "neutral" from "outperform".
