iShares U.S. Insurance ETF (IAK)

California-based insurance stocks and ETFs are in focus as the LA wildfires have wreaked havoc and ruined more than 10,000 structures.

The insurance industry recently saw some strong earnings reports as some of the more prominent players surpassed estimates for earnings, revenues, or both. This led to a rally in insurance ETFs. Here is a brief look at funds that may have benefited.

Travelers Companies reported 12% revenue growth and core income per share of $5.24, beating consensus. Strong underwriting and investment income drove the growth.

Floridians already pay high homeowners' insurance premiums in the U.S. The recent pair of hurricanes make a bad situation worse.

In the current scenario, investors should bet on ETFs that have been winners so far this year.

For a look at how hurricanes are categorized, and what it means for sustained wind speeds, Benzinga offers a breakdown.

Analyst downgraded Chubb Limited to Underperform, citing slower growth and lower operating leverage compared to peers despite premium valuation.

Sector ETFs, which are the major beneficiaries of a rate cut, rallied to new 52-week highs.

This article lists four ETFs from different sectors that have gained from strong earnings despite the market volatility.

Allstate sells Employer Voluntary Benefits business to StanCorp for $2.0B, expects decrease in adjusted net income return on equity, to close in 2025

Travelers Companies (NYSETRV) reports strong Q2 results with 12% revenue growth, $2.51 core income per share, and 8% increase in premiums.

The next market rotation could be into insurance stocks and they could rally as much as 30%, according to an investment advisor.

Citadel CEO Ken Griffin joined CNBC's "Power Lunch" Monday and discussed inflation, interest rates and the influence of AI on the American workforce. "They've got to stay with higher rates to bring inflation back in check," Griffin said. "They need to bring inflation down over time." The Citadel CEO noted that inflation has come down in goods, but remains elevated in the services sector. "Powell and the team, I think, has made the right choice of staying higher for longer."

Travelers Companies (NYSETRV) reported mixed first-quarter results, with earnings below expectations. Net written premiums and revenues increased, but core income per share fell below forecast. The company also declared a 5% dividend increase. Stock down 2.81% premarket.

Performance in April 2024: Utilities lead, real estate lags. S&P 500, Nasdaq 100, Dow Jones Industrial Average, small-cap and large-cap indices all decline.

Unprecedented levels of rainfall have caused the low-elevation sections of the Los Angeles area to flood with water and mud.

Insurance company stocks in 2024 have outperformed S&P 500, with a 5% increase driven by soaring vehicle insurance costs and complexity of EV repairs.

While longer-than-expected rate worries and banking concerns led to feeble trading in recent weeks, a few equity ETFs rose or saw a modest decline over the past month.

Back in the early 1980s, the average interval between major disasters was 75 days. Fast forward to 2022, and that average window has drastically reduced to a mere 20 days between billion-dollar disasters in the United States

Since insurance companies have long-term investment horizons, they can hold investments until maturity and hence no actual losses are realized.

The following insurance ETFs have gained 3.3% and 7%, respectively, so far this year.

While there have been losers in many corners of the space, these five ETFs from different industries that easily survived the market rout and outperformed last year.

While most segments of the market are suffering from huge losses, with technology bearing the maximum brunt, the energy sector has been the outperformer, followed by metal miners and many others.

With a possible recession on the horizon, investors may be able to protect themselves through the best investment funds.

These ETFs from different zones have been the star performers so far this year and could be better plays in the coming months. These ETFs deserve special thanks and attention going into the New Year too.