Shares of insurance giant Chubb Limited (NYSE: CB) were falling on Wednesday, down as much as 4.3% before recovering to a 3.1% decline as of 1:30 p.m. ET.
Chubb reported earnings last night, and in truth, there wasn't much to complain about for shareholders. However, most insurance stocks were down on Wednesday, as economic concerns moved to the forefront. Given Chubb's premium valuation, at least by insurance stocks standards, even good earnings couldn't overcome that high bar.
While investors have soured on stocks of late due to sticky inflation, one of the peskier elements of the recent inflation has been insurance rates. Since 2020, high catastrophe losses, economic inflation, and "social inflation," meaning a more litigious environment toward insurers, have caused some insurers to back out of certain lines of business, enabling the survivors to raise their premium rates significantly.
Source Fool.com