Insurers populated much of the five financial stocks that declined the most in the past week, while the gainers included a lending platform used by banks, an insurer, two crypto-related names, and a West Coast regional bank.
The biggest news in the financial space was the Federal Reserve keeping rates unchanged, but keeping the door open for further hikes if needed. The odds of another hike, though, lessened after the October jobs report indicated that the economy is cooling. The Financial Select Sector SPDR ETF (XLF) jumped 7.5% for the week, outpacing the S&P 500’s (SP500) 5.9% increase.
Some insurers that reported earnings during the week weren’t so fortunate. Unum Group (NYSE:UNM) took the biggest dip of financial stocks with more than $2B market cap, for the week ended Nov. 3, dropping 9.3%. While its Q3 earnings topped consensus, its Closed Block business was the only one of the company’s unit’s to post a decline in adjusted operating income due to higher long-term care benefits experience and a lower LTC earnings trajectory.
RenaissanceRe Holdings (NYSE:RNR) stock slipped 2.0% as its net premiums written fell 22% Y/Y to $1.42B in Q3. Underwriting results were hurt by net claims and claim expenses incurred; assumed and ceded reinstatement premiums earned; and earned and lost profit commissions.
On the positive side, Upstart Holdings (NASDAQ:UPST), the AI-driven lending platform for financial institutions, surged 32%, perhaps on the expectation that the Fed is finished raising rates.
Western Alliance Bancorporation (NYSE:WAL), one of the bank stocks that suffered the most during the spring’s banking turmoil, jumped 20%. Bill Gross, who had bought some WAL shares in the spring, had talked up regional bank stocks again this week.