4 Low-Beta Insurance Stocks to Watch Amid High Market Volatility

Industry Overview - Macroeconomic headwinds such as high interest rates, inflation, poor economic growth, and global conflicts are causing market volatility [1] - Despite these challenges, the insurance industry has outperformed the Zacks S&P 500 composite and the Finance sector, with a year-to-date increase of 16.7% compared to 14.6% and 5.5% respectively [1] Factors Driving the Industry - AM Best anticipates profitable commercial lines and improving personal lines, along with higher investment returns, to enhance industry performance in 2024 [2] - Swiss Re projects a 7% growth in premiums for 2024 and a 4.5% increase for 2025, with personal auto expected to outperform other lines [2] - The combined ratio is estimated to be 98.5% in 2024, indicating improved profitability [2] Company Highlights - Arch Capital Group Ltd. (ACGL): Expected long-term earnings growth rate of 6.8%, with a Zacks Consensus Estimate for 2024 indicating a year-over-year growth of 1.2% [8] - AXIS Capital Holdings Limited (AXS): Anticipated long-term earnings growth rate of 27.1%, with a Zacks Consensus Estimate for 2024 showing a year-over-year growth of 2.6% [9] - The Hartford Financial Services Group, Inc. (HIG): Expected long-term earnings growth rate of 12.2%, with a year-over-year increase of 11.6% in the 2024 earnings per share [10][11] - Old Republic International Corporation (ORI): Expected year-over-year increase of 3.8% in 2024 earnings per share, with a recent upward revision of 1.1% in earnings estimates [11][12] Investment Insights - The insurance industry is experiencing accelerated digitalization to enhance scale and efficiency, which supports growth initiatives and shareholder returns [4] - Low-beta stocks are recommended for steady performance in turbulent markets, with a focus on stocks that have shown positive price movement and substantial trading volume [5][6][7]