BUZZ-Property and casualty insurers more exposed to trade war than life insurers, JPM says

J.P. Morgan says a prolonged trade war or spike in tariffs would be a major negative for property and casualty insurers, but a manageable event for life insurers

U.S. President Donald Trump on Saturday ordered sweeping tariffs on Mexico, Canada and China, igniting fears of a trade war that could hit global growth

Brokerage says higher material costs would be a key negative for most P&C insurers as Mexico and Canada account for over half of auto parts imports to the U.S.

Personal lines insurers such as Allstate ALL.N and Progressive PGR.N are especially susceptible to sustained high tariffs on imports from Mexico and Canada - JPM

JPM says that while a prolonged trade war has negative implications for life insurers to the extent it pressures equity markets and the economy, they are more insulated than many other sectors

Higher rates would be a tailwind for companies with elevated exposure to interest rate sensitive businesses and modest exposure to equity investments

Globe Life's GL.N business mix makes it best positioned to cope with a prolonged trade war among major life insurers - JPM