NU Stock Analyst
September was not the horrendous month for insurance stocks that July 2002 etched in red ink in our record book, but it came close. Lets consider some July-September comparisons before dissecting September.
We priced 114 stocks in both months. In July, a record-breaking 101 issues declined and only 13 advanced. For September, there were 95 losers and a slightly more palatable 19 winners.
In July, the portfolio of 114 stocks collapsed almost 9%. In September, the same stocks were off a less painful 6.52%.
Its no surprise that all groups were down in September. However, the reinsurers almost made it into plus territory, thanks to a 22.35% surge in Trenwick Group. The reinsurers ended down only 1.05%, while the other sectors came nowhere near recording a positive performance.
The best of the rest were the property & casualty stocks and the brokers, down 4.04% and 4.89%, respectively. Next came the service companies and the specialists, off 6.66% and 6.37%.
After that, the remaining sector losses get pretty grim. The life & health stocks were down 10.68%, the financial services group deteriorated 11.57%, and the multi-lines slumped 13.24%.