© Reuters. 4 Property and Casualty Insurance Stocks to Add to Your Portfolio
The U.S. property and casualty insurance market experienced a mixed impact from the pandemic, with high underwriting profitability offsetting weakened premium volume. But because 2021 is expected to be the fourth consecutive year of underwriting profit for the industry, we think it could be wise to bet on the fundamentally sound carriers The Allstate (ALL), Loews (L), CNA Financial (CAN), and Alleghany (NYSE:). Let’s discuss.The U.S. property and casualty insurance industry managed to stay afloat amid the pandemic. While overall premium volume declined, many insurers generated solid underwriting profitability. According to an S&P Global Inc. report, the industry is expected to see a 5.8% increase in direct premiums written. Also, an expected combined ratio of 99.7 would make 2021 the fourth consecutive year of underwriting profit for the sector.
Furthermore, advanced technologies are driving the emergence of ‘Insurtech’ solutions, which could help the industry grow over the long term. According to a Mordor Intelligence report, the U.S. property and casualty insurance market is expected to grow at a 6% CAGR between 2020 – 2025.
Investors’ interest in the property and casualty insurance space is evidenced by the Invesco KBW Property & Casualty Insurance ETF’s (KBWP) 10.3% returns over the past six months. Given this backdrop, we think it could be wise to bet on the fundamentally sound property and casualty insurance stocks The Allstate Corporation (NYSE:), Loews Corporation (NYSE:), CNA Financial Corporation (CNA), and Alleghany Corporation (Y).
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