Insurance stocks were mostly down in a week that saw equity and commodities markets continue to react to the fallout from the war in Ukraine and subsequent sanctions on Russia.
The S&P 500 lost 2.88% during the week ended March 11, closing at 4,204.31. The S&P 500 Insurance index declined 1.47% to 545.25.
Hippo Holdings Inc.'s stock managed to climb even after the insurtech disclosed that its fourth-quarter 2021 net loss worsened year over year. The net loss attributable to the company reached $60.7 million in the fourth quarter of 2021, versus a net loss of $54.1 million a year earlier. CEO Assaf Wand said in an earnings call that the company is "unsatisfied" with the performance of its stock. That said, Wand has "more confidence than ever" in Hippo over the long term.
Insurtech Advisors analyst Kaenan Hertz was a bit more skeptical. While Hippo has posted rising revenues in the last year, expenses are higher as well.
"There is no evidence that Hippo has been able to control the underlying overall insurance economics," Hertz said.
Hippo's stock rose 16.67%.
In response to the invasion of Ukraine, a number of insurers around the world are cutting ties with Russian companies or ending their operations in Russia.
Shares of Aon PLC first plunged but then recovered in a week that saw the company deciding to put all Russian staff on paid leave and suspending operational activity in the country.
"We will continue to monitor the situation to determine if we will take further actions," CEO Greg Case said in a statement.
Aon closed the week up 0.54%.
Fellow broker Marsh & McLennan Cos. Inc. announced that it would exit all of its businesses in Russia, which will operate independently after a transfer of ownership to local management.
Marsh & McLennan dropped 4.41% on the week.
Also this week, Brown & Brown Inc. disclosed that it will pay $2.5 billion in total for the acquisitions of Global Risk Partners Ltd., Orchid Underwriters Agcy LLC and BdB Ltd.
Executives said on a conference call that they do not expect the deal for Global Risk Partners to create distractions or lead to staff defections. They also said the broker is looking to make more acquisitions through the new purchase.
Wells Fargo analyst Elyse Greenspan said in a note posted shortly after the deal's announcement that Brown & Brown's stock could slip, given the multiple it paid for Global Risk Partners and the integration risk of an international expansion. Shares did just that, declining 8.33% on the week.