P&C stocks drop sharply on Monday as global markets bloodbath continues

By Carlos Pallordet

April 7 - Tokio Marine and Sompo closed down more than 10% yesterday while Asian and European stocks plummeted in the wake of the worst week for global equities since the pandemic.

Tokio Marine led the losses with a 12.7% fall on Monday, following a drop of 6.7% on Friday and 5.2% on Thursday. It is now 32.6% down from its 52 week-high.

Sompo Holdings was second place among the falls on Monday, plunging 11.6%. Its peer MS&AD closed down 9.4%.

The falls came amidst a brutal day for global markets, with Japan’s Nikkei 225 index down 7.8% and Hong Kong’s Hang Seng plummeting 13.2, its biggest one-day drop since the 1997 Asian financial crisis.

Australian insurers also experienced significant losses, with QBE down 6.8% and Suncorp and IAG shedding 5.4% and 5.3% respectively.

European stocks also opened sharply in the red, with P&C shares down significantly in early trading.

As of 10.34 a.m. BST, German group Talanx was the biggest faller with a 6.9% drop, followed by Swiss Re, down 6.3%.

Reinsurance peer Hannover Re was down 6.0%, while Munich Re and Scor were both down 5.9%.

Among London-listed insurers, Aviva was the most significant faller, with a drop of 5.6%, followed by Hiscox and Lancashire, down 5% and 4.6% respectively.

The FTSE 100 is trading down 3.6%, while the French CAC-40 and the German Dax are down 5.0% and 4.7% respectively. The S&P 500 future is down over 2.5%.