- While most P&C insurer stocks are rising today, auto insurers may be getting a bit of a lift from February's consumer price index report released today.
- The report mentions that the price index for motor vehicle insurance rose during the month vs. January 2021. Year-over-year, though, the index is down 2.8%.
- The ability to raise insurance prices may indicate that people are driving more, after the pandemic forced many to work from home.
- That could help earnings for Progressive (PGR +2.6%), Berkshire Hathaway (BRK.B +2.5%) (BRK.A +2.6%), Allstate (ALL +1.2%), and Travelers (TRV +1.2%).
- Still, overall P&C insurer stocks are faring well during the session, with the S&P 1500 Composite Property & Casualty Insurance index rising 1.9% during midday trading.
- Even with recent gains, insurers still lag the S&P 500's performance over the past year as seen in the chart below, comparing the S&P 1500 Composite P&C Insurance index (orange line) with the S&P 500 and auto insurers PGR, ALL, BRK.B, and TRV.
- SA contributor Josh Arnold calls Progressive the "sleep-well-at night insurer."
