AUS
NZ
UK
CA
USA
IND
Background
On the weekend of February 8th and February 9th the United Kingdom was hit by a thunderstorm called Ciara, which caused a lot of damage to property and put a halt to the output and productivity of the entire country. The weekend saw businesses being closed off as authorities were looking into the situation closely and issuing alerts so that citizens could protect themselves. There were also losses of economic output from some indirect fields, such as football and other sports games were cancelled during the period, which led to large amounts of losses of broadcasting and ticketing revenue in the country.
On the following weekend, that is 15th and 16th February, the UK was hit by another thunderstorm, called Storm Dennis. Dennis was reportedly not as strong as Ciara, but still did some damage in a few parts around the United Kingdom.
Accounting firm PwC has now estimated the financial and monetary damage done by the two storms and anticipate that insurance market losses for homes, cars and businesses impacted by the two storms will be between £150 million to £200 million.
Both storm Ciara and Storm Dennis have caused a catastrophe not just in the UK but across the European Continent. Around the continent, the financial losses of the havoc caused by last weekâs storm, that had been called Sabine in the country of Germany has been estimated to be somewhere in a range of â¬1.1 billion and â¬1.8 billion (or £910 million and £1.5 billion). One of the worldâs biggest disaster risk management and risk modelling firms, RMS stated that the damages in Germany would amount to around 50 per cent of the total damages in the entire continent. Ciara saw winds travelling at a speed of 137 miles per hour (MPH) in Corsica, which is an island in the administrative region of the French territory.Â
The status of Insurance Claims
The government is currently working closely with insurance companies and third-party insurance agencies to cover costs and expenses for all damages to all kinds of property, or life if any. The scope is expected to cover homes, vehicles and businesses. Albeit, it has been stated that some of the car insurance deals may not cover damage caused by these strong winds and storms, leaving motor vehicle users to cover for the repairs of the damage by themselves. This is primarily due to the fact that some owners may not have the right kind of insurance agreements, that could allow them to cover for and make claims against the damage caused by Storm Ciara.
The insurance industry is expected to be affected a lot because of these consecutive storms, which could additionally impact their financial as well as operational performance. Furthermore, this could also lead to significant volatility in the insurance stocks. Following is a brief analysis of some of the insurance stocks, which are a part of the FTSE 100 index of the London Stock Exchange, that could potentially be impacted by these events:
Stock Price PerformanceAs on 17th February 2020, at 08:30 A.M (Greenwich Mean Time), by the time of writing this report, the Aviva Plc Stock was trading at a price of GBX 411.00 per stock on the London Stock Exchange market, an increase in the value of 0.02 per cent or GBX 0.1 per stock, as opposed to the price of the stock on the previous trading day, which had been reported to be at GBX 410.90 per stock.
The market capitalisation (M-Cap) of the stock stood at a value of GBP 16.423 billion, with respect to the current market price of the stock of the company at the time of writing this report.
It has been reported that the Aviva Plc stock had lost around 2.72 per cent in value, in the last twelve months, since February 18, 2019, when the stock was trading at a price of GBX 422.50 per stock at the time of the close of the market. It has also been reported that the companyâs stock has gained approximately 13.95 per cent, in the last six months, in comparison with the stock price of GBX 360.70 at the time of the close of the market as on August 16, 2019. Aviva Plcâs stock has been reported to have gained 0.81 per cent, in the last one-month time from the stock price of GBX 407.70 per stock that the stock set as on January 17, 2019.
The beta of the Aviva Plcâs stock has been reported to be at 1.11, giving an idea that the movement in the stock price, is more fickle, as against the movement of the comparative benchmark index.
ADM Stock Price Performance
As on 17th February 2020, at 08:35 A.M (Greenwich Mean Time), by the time of writing this report, the Admiral Group Plc Stock was trading at a price of GBX 2341.00 per stock on the London Stock Exchange market, an increase in the value of 0.64 per cent or GBX 15.00 per stock, as opposed to the price of the stock on the previous trading day, which had been reported to be at GBX 2326.00 per stock.
The market capitalisation (M-Cap) of the stock stood at a value of GBP 6.831 billion, with respect to the current market price of the stock of the company at the time of writing this report.
It has been reported that the Admiral Group Plc stock had gained around 9.85 per cent in value, in the last twelve months, since February 18, 2019, when the stock was trading at a price of GBX 2131.00 per stock at the time of the close of the market. It has also been reported that the companyâs stock has gained approximately 8.88 per cent, in the last six months, in comparison with the stock price of GBX 2150.00 at the time of the close of the market as on August 16, 2019. Admiral Group Plcâs stock has been reported to have gained 0.47 per cent, in the last one-month time from the stock price of GBX 2330.00 per stock that the stock set as on January 17, 2019.
The beta of the Admiral Group Plcâs stock has been reported to be at 0.61, giving an idea that the movement in the stock price, is less fickle, as against the movement of the comparative benchmark index.
LGEN Stock Price Performance
As on 17th February 2020, at 08:40 A.M (Greenwich Mean Time), by the time of writing this report, the Legal & General Group Plc Stock was trading at a price of GBX 319.10 per stock on the London Stock Exchange market, an increase in the value of 0.22 per cent or GBX 0.70 per stock, as opposed to the price of the stock on the previous trading day, which had been reported to be at GBX 318.40 per stock.
The market capitalisation (M-Cap) of the stock stood at a value of GBP 18.99 billion, with respect to the current market price of the stock of the company at the time of writing this report.
It has been reported that the Legal & General Group Plc stock had gained around 19.51 per cent in value, in the last twelve months, since February 18, 2019, when the stock was trading at a price of GBX 267.00 per stock at the time of the close of the market. It has also been reported that the companyâs stock has gained approximately 40.82 per cent, in the last six months, in comparison with the stock price of GBX 226.60 at the time of the close of the market as on August 16, 2019. Legal & General Group Plcâs stock has been reported to have gained 6.65 per cent, in the last one-month time from the stock price of GBX 299.20 per stock that the stock set as on January 17, 2019.
The beta of the Legal & General Group Plcâs stock has been reported to be at 1.05, giving an idea that the movement in the stock price, is more volatile, as against the movement of the comparative benchmark index.Â
STJ Stock Price Performance
As on 17th February 2020, at 08:45 A.M (Greenwich Mean Time), by the time of writing this report, the St. Jamesâs Place Plc Stock was trading at a price of GBX 1189.00 per stock on the London Stock Exchange market, an increase in the value of 0.08 per cent or GBX 1.00 per stock, as opposed to the price of the stock on the previous trading day, which had been reported to be at GBX 1188.00 per stock.
The market capitalisation (M-Cap) of the stock stood at a value of GBP 6.355 billion, with respect to the current market price of the stock of the company at the time of writing this report.
It has been reported that the St. Jamesâs Place Plc stock had gained around 25.45 per cent in value, in the last twelve months, since February 18, 2019, when the stock was trading at a price of GBX 947.80 per stock at the time of the close of the market. It has also been reported that the companyâs stock has gained approximately 26.49 per cent, in the last six months, in comparison with the stock price of GBX 940.00 at the time of the close of the market as on August 16, 2019. St. Jamesâs Place Plcâs stock has been reported to have gained 7.07 per cent, in the last one-month time from the stock price of GBX 1110.50 per stock that the stock set as on January 17, 2019.
The beta of the St. Jamesâs Place Plcâs stock has been reported to be at 1.13, giving an idea that the movement in the stock price, is more volatile, as against the movement of the comparative benchmark index.
Comparative stock price performances of AV., ADM, LGEN and STJ
(Source: Thomson Reuters) Daily Chart as on 17-February-20, before the closing of the LSE Market
