Shares of insurance companies with significant exposure in Japan closed down on Tuesday, with Aflac Inc. (NYSE:AFL), Hartford Financial Services Group Inc. (NYSE:HIG), MetLife Inc. (MET) and Prudential Financial Inc. (PRU) all feeling the nuclear heat.
Aflac is getting hit the most, as they have the most exposure to the Japanese market, followed by Hartford Financial Services Group Inc. , MetLife Inc. and Prudential Financial Inc.
Uncertainty as to the amount having to be paid out will keep pressure on insurers and reinsurers, and at that time it could get worse, depending on how deeply the damage goes, which is obviously extensive.
Aflac closed Tuesday at $50.89, losing $3.01, or 5.58 percent. Hartford closed at $25.60, dropping $1.22, or 4.55 percent. MetLife was lower, ending at $43.40, falling $1.34, or 3.00 percent. Prudential closed the day at $60.09, down $1.17, or 1.91 percent.
Wednesday, March 16, 2011
Aflac (AFL), Hartford Financial (HIG), MetLife (MET), Prudential Financial (PRU) Down on Japan Exposure
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1 comment:
This sell-off is stupid. AFL actually has a very limited exposure in that area affected by the terrible quake. And the fears of nuclear meltdown are grossly exaggerated. People have already been evacuated from the possible exposure areas. AFL has life and cancer and disability policies. 75% of their sales are in Japan, but most of the damage is property. Very few people will get cancer from radiation leaks, as they've been evacuated, and radiation dissipates quickly. On the upside, terrible fear is now coursing through Japan, which might cause uninsured households to start getting insurance, especially if AFL does a good job handling claims, and as one of the World's Most Ethical Companies, I'm sure it will.
They will come out of this ahead by the end of the year. Strong buy now.
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