Annualize

Prices for U.S. property insurance look especially strong. Prices were up 19% year over year in the second quarter, accelerating from a 17% annualized gain in the first quarter, according to the Marsh Pricing Index. Prices have now risen for 23 consecutive quarters.

One bright spot for investors: Reinsurer stocks are holding up, partly because the companies have managed to unload risks and raise prices, pushing down their “loss ratios”. Shanker, of BofA, sees strong demand for reinsurance in 2024, especially from Florida, a big buyer through its state-backed hurricane catastrophe fund. Florida “probably didn’t buy as much as they need,” he says. Many primary insurers are also likely to buy more reinsurance for 2024, he adds.
–Barron’s