M&A fever helps stocks outperform
P&C (re)insurance stocks managed to outperform the wider stock market in June despite The Insider 30 trading up by just 0.24 percent.
M&A fever once again gripped the market last month, with HCC's share price soaring by 34.38 percent on the announcement of its high-multiple $7.5bn sale to Tokio Marine on 10 June. Fellow US specialty stocks WR Berkley and Argo were also lifted by the news, rising by 5.98 percent and 5.79 percent.
Meanwhile, Bermudian carrier Endurance performed well as its share price climbed by 8.09 percent.
In contrast, some European (re)insurance stocks performed less favourably last month. Shares in UK multi-line insurer RSA dropped by 7.91 percent in June. On Monday 6 July, RSA said that it intended to appeal a decision by Ireland's employment tribunal to award its former Irish CEO a EUR1.25mn payout for constructive dismissal.
Berkshire Hathaway's stock also experienced a notable decline of 4.66 percent. Last month, Australasian insurance giant IAG entered into a 10-year 20 percent quota share arrangement with the conglomerate.