European P&C stocks soar on Trump’s tariff pause

By Ryan Hewlett

April 10 - (The Insurer) - European P&C (re)insurance stocks rose sharply on Thursday morning, mirroring a jump in U.S. and Asian equities overnight after U.S. President Donald Trump temporarily reversed course on tariffs.

European markets were up across the board at 9:30 a.m. in London on Thursday, with the FTSE 100 4.2% higher, Germany’s DAX index up 5.4% and France’s CAC 40 up by 5.1%.

The regional composite Stoxx 600 index was 4.9% higher, with all individual sectors in positive territory.

The Stoxx 600 Insurance index was 3.9% higher in early trading, reversing sharp losses which began last Thursday after Trump's tariff announcement sent shockwaves through global markets.

Global reinsurers Swiss Re and Scor were both trading more than 7.5% higher shortly after the opening bell while Hannover Re and Munich Re jumped 3.4% and 5.2%, respectively.

Elsewhere, Axa led the gains among European composite carriers with the Paris-listed stock rising almost 6% in early trading. Peers Allianz and Zurich were up 5.1% and 4.8%, respectively, while Italy’s Generali was 3.5% higher.

The trio of Lloyd’s blue-chips were also swept up in the gains with London-listed Hiscox trading more than 6% higher on Thursday while Beazley and Lancashire rose 4.7% and 4.1%, respectively.

Thursday’s gains have clawed back some of the losses suffered by P&C (re)insurance stocks in what has been a volatile week for markets.

Trump on Wednesday reduced the new tariff rates on imports from most U.S. trade partners to 10% for 90 days, sending U.S equities soaring.

Asia Pacific markets also jumped on Thursday in response to the news. Japanese markets led gains in the region with the benchmark Nikkei 225 closing 9.1% higher.

Shares in the big three Japanese P&C carriers were swept in the buying spree with Sompo, MS&AD and Tokio Marine registering significant gains of more than 8% during the session.

Australian P&C stocks also pushed higher, albeit to a lesser extent. QBE led the gains, closing 4.4% higher, while Insurance Australia Group rose 3.4% and Suncorp climbed 3.3%. ASX-listed intermediaries AUB Group and Steadfast rose 6.3% and 4.2%, respectively.