2020 - Global Insurance Stock Review - Q3 2020
International equity markets rebounded in the third quarter, enough so that most of the major indexes recovered to near where they were on January 1. Hopes for a vaccine-driven reduction in COVID infections and for more government financial stimulus (both of which seemed less likely by late October) gave investors some renewed optimism.
The Morgan Stanley Capital International All Countries World Index erased its early year swoon to finish the first three quarters of 2020 down just 1%. In the US, both the Dow Jones and the S&P indexes rose about 8% for the third quarter, to reduce their severe first half losses.
Unfortunately, insurance stocks as a group did not participate in the third quarter recovery. The IIS Global Insurance Stock Aggregate declined 17.6% for the first nine months of the year, a scant 2% improvement from the 19.5% drop suffered in the first half.