Insurers Unum, Markel suffer; Upstart and Coinbase climb: Week's financial movers

stock market chart trading board


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.

Markel Group (NYSE:MKL) fell 6.7% during the week. In its Q3 results, its combined ratio increased to 99% from 93% in the year-ago quarter.

Peru-based bank Credicorp (NYSE:BAP) slid 2.8% as its Q3 net income declined 6% and its return on equity dropped to 16.2% from 19.8% in the year-ago quarter.

Ryan Specialty Group (NYSE:RYAN) stock dipped 2.1% even though its quarterly earnings and revenue exceeded consensus estimates.

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.

Mercury General (NYSE:MCY) climbed 23% after its Q3 earnings achieved a big beat over the Wall Street consensus.

Coinbase Global (NASDAQ:COIN) surged 21% during the week the company said it expects “meaningful positive” adjusted EBITDA for 2023.

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.

Riot Platforms (NASDAQ:RIOT) gained 19% after Bernstein gave the bitcoin-miner an Outperform rating in new coverage.

Roy Walsh

Related post