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Survey Shows Close Correlation of Insurers' Stocks to S&P 500

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The stock performance of major life insurances in 2010 has correlated closely with that of the S&P 500, according to a new survey.

Sterne, Agee & Leach Inc., Birmingham, Ala., published this finding in a summary of results from an October 2010 report on the life insurance industry. The report correlates individual stock performance versus the

S&P 500 in 3 periods: January-April, April-August, and August-Sept.

The correlation in each of the 3 periods, the report finds, is “extremely high.” The stock performance of 14 of the 15 life insurance surveyed shows a correlation exceeding 75%.

Eleven insurers show a correlation approaching 95%.