Insurance stocks slump as US investors keep their own council

Only four stocks gained in value; two of these by mere fractions of a percent

The fortnight ending 18th May must surely represent one of the biggest declines for the insurance and reinsurance sector stocks tracked by WIR since Hurricane Katrina swept through the market in September 2005. Only four stocks posted gains, and for two of these (Endurance Specialty and Everest Re) such gains were negligible, by fractions of a percent. Only Berkshire Hathaway and QBE, gained steadily, if not spectacularly, by 4.7% and 4.2% respectively. In Europe, particularly in Germany, worries about rising oil prices, a rising Euro and the fear of tax increases has prompted a slump in business confidence. In the US investors clearly kept their own council despite the insurance sector being widely touted as place for bargains by a number of ‘contrarian’ stock market commentators.